Commercial concession agreement

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The commercial concession agreement is concluded in writing. And the granting of rights to use trademarks, inventions, utility models and industrial designs under the agreement must be registered with Rospatent.

Many companies neglect to register their grant of rights, but this can lead to problems in the future.

In addition, registration has a number of advantages :

Proof of right to use intellectual property for third parties. If you want to cooperate with other companies, they may ask you to confirm that you have rights to use intellectual property. If there is no record of registration in the registry, this may be a reason for refusal to cooperate.
Tax benefits. Remuneration for the use of inventions, utility lithuania whatsapp phone number models, industrial designs, integrated circuit topologies and production secrets (know-how) under a commercial concession agreement is not subject to VAT (according to subparagraph 26.2 of paragraph 2 of Article 149 of the Tax Code of the Russian Federation).
Federal and regional support programs. Within the framework of such programs, you can receive subsidies and grants, reduce interest rates on loans and take advantage of other support measures. Information about current programs can be found on the official websites of the governments of the Russian Federation and its subjects. For example, a program is currently in effect for the payment of subsidies to entrepreneurs and companies registered and operating in the Moscow Region.


What is important to consider
When choosing a franchise and concluding a concession agreement, check:

Is the right to use the trademark granted ? The contract must specify the trademark registration number, not just a word or image. The trademark must be valid and registered for the goods or services that are to be used.

Does the copyright holder register the granting of the right ? By default, the obligation to register lies with the copyright holder, but the contract may shift the obligation to the user. In order to avoid the costs of registration and the difficulties associated with it, it would be better for the user if the registration is carried out by the copyright holder.

How to use the intellectual property of the copyright holder . The agreement often provides for the need to comply with the brand book and instructions for the design of retail outlets.

Has the copyright holder entered into franchise agreements before ? Experience increases the likelihood that the network is successful and that business processes and interaction with users are well-established. In the trademark register, you can check whether concessions have been previously registered for a specific trademark.

The amount of the reward and the terms of its payment . Usually the reward consists of two parts: the first is a one-time payment, the second is periodic payments calculated in the amount of a certain percentage of the user's revenue.

Amount of copyright holder support . Depending on the user's experience and resources, different levels of copyright holder support may be appropriate.

User obligations and restrictions . It is necessary to find out in advance what restrictions and obligations the agreement imposes on the user and how to properly fulfill them in order to avoid sanctions.

Penalties . The agreement may provide for both compensation for damages to the copyright holder, as well as significant fines and the copyright holder's refusal to comply with the agreement.

Procedure for terminating a contract . It is necessary to find out in advance in which cases you can terminate the contract without the consent of the other party, and in which cases the counterparty can do this. Often, when concluding a contract for a fixed term, only the copyright holder can terminate it early.

You should not search for and use samples of franchise agreements in open sources. Such samples do not take into account the specifics of a particular business and will not reflect the real relations of the parties.