The Legal Nature and Application of Commercial Concession and Franchising in the Eurasian Economic Union Member States

Every year, participants of the economic activity in the member states of the Eurasian Economic Union, including Russian entrepreneurs, increasingly use franchise relations to conduct their activities. It seems that in the legislation of foreign countries, franchising acts as an analogue of a commercial concession agreement in Russia. This model can be simplified as one of the ways for a company that has unconditional success in a certain area, and a recognizable, well-known trademark to provide other entrepreneurs with the right to conduct business under the company’s trademark on the terms stipulated under the contract. The paper draws attention to the fact that in Russia a commercial concession is different from an identical agreement in other countries. In this work, the author has determined the legal nature of the commercial concession in the Eurasian Economic Union member states, analyzed some problems of applying the franchising model of business organization in the Russian Federation and abroad, and proposed some changes in the current legislation.

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