Franchising Agreement in International Contract Law

The aim of this research work is to analyze the theoretical assumptions concerning the problems of legal regulation of international franchising agreement, as well as the collision and the substantive regulation of franchise relations. In accordance with this purpose the following aims were set: to analyze the concept of international franchising agreement, its attributes and relationship to the contract of commercial concession in accordance with the Russian legislation; to determine the characteristics of international and foreign regulation of franchising contract; to study the collision regulation; to disclose the specific content of the international franchising agreement, in particular, its key terms. The following conclusions have been made: firstly, the definition of international franchise agreement that best reflects its essence, is not secure in any legislative act. Secondly, this agreement is an independent contract, different from the related types of contracts. Thirdly, it is proposed to change the title of Chapter 54 of the Civil Code of Russian Federation from “commercial concession” to “franchise”, what will help to avoid differences in the definition of the agreement and its actual content. Fourthly, most of the sources that regulate international franchise agreement are based on lex mercatoria, which can be binding only if it is stated in a certain agreement. Fifthly, the main connecting factor is the law of autonomy of the parties, indicating the possibility of the parties to determine the applicable law. In the absence of such a choice, the connecting factor is the law of closest connection. Sixthly, it is demonstrated that under international contract law the principle of equalization of status of the parties to the contract is implemented. The above allows to come to the main conclusion: it is vital to create a unified international legal instrument on the issues of the contract.