The Modern Understanding of Franchising in Theory and Legislation
Abstract
For post-Soviet countries, the concept of franchising is relatively new, which is why the legislation in this field is still being improved. For Kazakhstan, which is undergoing the globalization process, the identification of the ‘franchising’ concept and its reflection in the legislative framework is an important aspect of economic development. Therefore, the purpose of this study is to attempt to deduce the modern understanding of franchising in theory and legislation. A study of the franchising agreement according to the laws of Kazakhstan would be incomplete without an investigation of the peculiarities of legal regulation of franchising in the countries of its origin – the USA and European countries. The study also makes a legal analysis of the types of franchising that are enshrined in the Law of Kazakhstan ‘On the Complex Business License (Franchising)’ dated June 24, 2002. The study uses economic and legal criteria for the classification of franchising. The analysis of legislative frameworks allowed giving a new definition of the term ‘franchising’. In addition, the study investigated its legal regulation and correlation with other business agreements.
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