УГОВОР О ФРАНШИЗИНГУ
FRANCHISE CONTRACTS

Summary/Abstract: The franchise contract is a new form in Yugoslav contractual practice. Thus, it has not as yet been regulated by the Yugoslav sources of law, while in the legal doctrine this contractual form is mentioned, but very briefly analysed, and only in some textbooks of commercial law. This has initiated the author of this essay to attempt to explain the concept of this contract as well as its legal nature in more detail. In the analysis of the concept of franchise contracts, the author points to the significant differences in definition of this concept in both legislature (primarily in the U.S.A.) and the foreign legal doctrine. This difference in the definition of franchise is partially, according to the author, the result of the fact that there are many forms of franchise which have not been sufficiently differentiated. Therefore, the essay, before the taking of the final view on the concept of franchise contracts, serves to display and classify the various conceptual forms of that contract. In conclusion of the analysis of the definition of franchise, the author offers his own definition of that contract: it is a constant contractual form, establishing a system of co-operation between independent parties, according to which one of them (supplier, giver of franchise), for a compensation, offers the other deceiver, beneficiary of franchise) the right of use, in the course of Ills business activities using certain commodities or services, according to precisely defined conditions, of his name (title), trade mark, external appearance or other registered rights, as well as his technical and business experience, with the undertaken obligation on part of the other party to perform his business activities according to the system and organisation of the supplier (giver), while the supplier of the franchise provides the aid, advice and training, and finally, supervises the activities of the beneficiary. The second part of the essay is devoted to the legal nature of franchise contracts. After discussing the various views on this question in the legal doctrine, the author proposes his own view that the franchise contract is a mixed contract, which, besides the elements of the licence contract, know- -how contract and the contract of representation, may in its many variants also contain elements of the sales contract, contract of leasing, contract of association and contract of deed.

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