Underneath the Golden Boy - Robson Hall Faculty of Law

376 Underneath the Golden Boy
registration scheme by requiring that all commercial concession contracts be
registered by the agency to have performed the registration of the legal entity or
individual entrepreneur acting under the contract as right-holder (franchisor).
The contract of commercial concession for the use of an object protected in
accordance with the patent legislation shall be also registered with the patent
agency of the Russian Federation. 109
Under Article 1031, the franchisor is obligated to transfer to the user
(franchisee) technical and commercial documentation, and provide other
information necessary for the franchisee to exercise his rights under the contract;
issue to the user licenses stipulated in the contract, having formalized them in
accordance with the established procedure; render continuous technical and
consulting assistance to the user; and supervise the quality of goods
manufactured by the user in compliance with the contract of commercial
concession. Under Article 1032, the franchisee is obligated to use the rightholder’s
firm name and/or trademark as provided by the contract; ensure quality
conformance with the manufactured goods, services rendered, work performed
under the contract with the quality of similar goods, services and work,
manufactured, rendered or performed directly by the right-holder; observe all the
right-holder’s instructions and directions aimed at ensuring the conformance of
the nature, ways and terms of the use of the complex of exclusive rights with the
use thereof by the right-holder; not to disclose right-holder’s know-how or any
other confidential commercial information received from him; to issue a
specified number of subconcessions, should the contract stipulate this obligation;
and to inform buyers in a way most obvious for them that he is using the firm
name, commercial mark, trade mark, service mark or any other individualization
mark by virtue of the contract of commercial concession. The Chapter also
contains provisions dealing with a franchisee’s right of renewal as well as the
amendment and termination of the contract of commercial concession. 110 Either
party has the right to recede from the contract at any time by notifying the other
party six months in advance, unless the contract specifies an earlier date. 111
The Russian Franchise Association was formed in 1997 for support and
protection of the interests of its members and to create a more favorable legal
109
Russian Franchise Association, Chapter 54, Commercial Concession, online: The Legislation
.
110
Ibid.
111
Frank Zaid and John Sotos, supra note 28.