THE FRANCHISING AGREEMENT IN RESPONSE TO TRENDS IN THE DEVELOPMENT AND CHANGES IN THE NEW ECONOMY OF COUNTRIES IN TRANSITION
Abstract
The franchising agreement is an unnamed contract in our legal system, the reason for this is that it is taken from the foreign legal practices and as such represents a contract later date. The legal doctrine that is in conjunction with the deep economic doctrine adopted the franchise system as a modern type of business and set up a legal framework for the smooth Transactions of the franchise authorities. Countries in transition are faced with a series of problems after the transition from social to private property, the biggest problem is the loss of the working class as the main carrier of the economy. Another problem is the loss of labor and means of production or their concentration in the hands of a small number of people. In order to overcome these problems and increase employment and launched businesses, the franchise system is one of the possible solutions. Business system based on franchise agreements are already in retrospect proved to be an effective system of business after the First and Second World War, when the world economy was faced with the same problems as it is today faced economies of the countries in transition. This paper will show the term of the contract on franchise, features of the contract, legal effect, coupling between franchisig contracts and license agreements, and benefit from franchising contracts in the new economy.
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