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Franchise Law

Franchise agreement is not regulated in our law of Obligations. As in other countries where there is no such agreements in accordance with the principle of freedom of contract in Turkey,however, it is freely regulated between the parties on the condition that they remain within the legal order. The franchise agreement has similar aspects to the types of contracts included in the Code of Obligations, such as sale, lease, proxy, service, revenue lease agreements, as well as the agency relationship included in our Commercial law. There are various opinions that the franchise agreement which is an anonymous contract because it is not regulated in the law is sui generis or a mixed contract.

It should be recognized that the contractual provisions similar to the franchising agreement may be applied comparatively. Ömer Nazlım , one of our lawyers specialized in the field , provides consultancy with our experienced team.

 ömer nazlım

Provisions for Franchising Agreement:

  • Rights granted to Franchisor (selling the name right)
  • Rights granted to Franchisee (buying the name right)
  • Franchisor's obligations
  • Franchisee's obligations
  • Terms of payments to be made by Franchisee
  • Operating region (Franchise Territory)
  • For Franchise's initial investment cost required duration of agreement
  • Goods and services to the Franchisee
  • Advertising programs
  • Franchising sözleşmesinde uygun olabilecek diğer konular;
  • Conditions of renewal of the contract
  • Conditions to sell and / or transfer the Franchisee bussiness
  • right of pre-purchase
  • Individual Franchisee, Franchisor`s distinctive mark, trade name, trademark, service mark, shop signs, logo and other distinctive terms of use
  • Franchisor's system renewal and the right to change the methods applied and their implementation
  • Provisions relating to the return of financial and / or royalty rights to franchisor owned by the Franchisor in the event of the termination of the contract
  • Provisions on non-competition
  • Obligation to keep secrets
  • The parties should include in the contract all matters agreed upon in the negotiations.

Termination of Franchise Agreement:

a) Timeout: The franchise agreement is usually established for a certain period of time agreed upon at the beginning. The contract expires automatically upon the expiry of the agreed period.

b) Ordinary Termination: This type of termination is the termination of the contract with the unilateral declaration of one of the parties for the future and without having to rely on a cause. Ordinary termination may be made in a contract made indefinitely.However, if the parties agree in the fixed-term franchise agreement, ordinary termination is possible.

c) Extraordinary termination: The termination of the contract in such a way would be the case occurrence of unforeseen circumstances or when one of the parties does not fulfill its debts.

d) Other reasons: In the case of death of one of the parties, loss of the capacity of the act and the decision of bankruptcy, the franchise agreement shall be terminated as a rule.