The regulation of franchise agreements in the Baltic states

Abstract

The number of franchises sold by local Baltic companies is gradually increasing hence it is important to determine whether the existing legal environment satisfies the development of franchising in the Baltic states. The main objective of the study is to analyse franchise-specific legislation in the Baltic states and the EU competition law applicable to franchising in order to detect provisions which might hinder the business, to come up with solutions, as well as provide insight into the future development of franchising. The research has been conducted from a perspective of expanding local Baltic enterprises and highlights possible difficulties and future trends of business format franchising. The thesis seeks to show that the regulation of franchising is mainly concerned about finding a balance between the interests of a franchisor and a franchisee. It is proposed that the Baltic states and the EU would benefit from a harmonised franchise regulation, as it would provide equal rules to all market players and foster a better balance between the interests of franchisors and franchisees.