Drafting Franchise Agreements in Cyprus
Drafting Franchise Agreements in CyprusUpdated on Wednesday 24th August 2016
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Franchising in Cyprus represents one of the most preferred ways to access a business market. This method is so popular because it involves using a business scheme which has already proven to be effective. Moreover, when setting up a franchise here, the main advantage is that the brand is already familiar to the local and international markets, so the investor is not required to invest in the visual identity of his or her company. The franchise agreement is established between two parties, the franchisee and the franchisor, and it contains regulations referring on how the respective business should be carried out. Our team of Cypriot lawyers can offer legal assistance for the drafting of a franchise agreement.
Regulations referring to franchise industry in Cyprus
When opening a new company in Cyprus, foreign investors should know that the local authorities impose the regulations available within the European Unions’ area. Investors who want to set up a franchising business in Cyprus are welcomed here, as there are no restrictions referring to the operations of the respective company, nor to the legal entities in which such an agreement will be set up.
It is important to know that the local market is highly represented by American franchising businesses, set up in the field of catering and beverage sectors.
Those who want to enter into a franchising agreement in Cyprus should know that the state represents one of the most powerful jurisdictions in this sense, alongside with Ireland. One of the main reasons referring to this matter is that the Cypriot population is brand conscious; our team of attorneys in Cyprus can offer an in-depth presentation on the legislation regulating this industry.
Intellectual property for franchise businesses in Cyprus
Persons entering into a franchise agreement in Cyprus should be familiar with the legislation on intellectual property rights, which are given by the franchisor (the person or the legal entity allowing another person to represent his or her business on the local market) to the franchisee.
The intellectual property rights are given to the franchisee for a limited amount of time (specified in the contract) and the respective person will not be allowed to use any trademarks or other distinctive signs belonging to the franchisor, after the contract ended.
Businessmen interested in receiving more details on the franchising contracts in Cyprus can address to our Cypriot law firm for legal assistance.