Franchise Agreements in Montenegro
Franchise Agreements in MontenegroUpdated on Monday 30th January 2023
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Franchising represents a method by which a business can expand through a licensing relationship. The franchisors, that is the company or individual offering the license to a third party for the business conducting under his or her marks, have to specify the goods or services which will be provided by the franchisees, which is the individual or company who is offered the license to effectuate business activities under the trademark and trade name of the franchisor. In this article, our lawyers in Montenegro outline a few key aspects related to franchise agreements in Montenegro.
The franchising legislation in Montenegro
Our lawyers in Montenegro would like to mention that there is no precise legislation connected to franchising in this country.
Franchising is not largely practiced in Montenegro at the moment, even though the business environment is favorable and there is an advantageous system for transferring technology and know-how. Our attorneys in Montenegro can offer further details related to this matter.
Several successful franchises do exist in Montenegro, such as the ones in the food and beverage industry.
Different reports picture the country as one in which tourism and property investments can be profitable.
The number of foreigners who live in Montenegro and that of visitors is growing, which represents another target market for franchisers.
There is a solid market potential for franchises in sectors such as restaurants, equipment, catering and apparel. If you are interested to acquire a passport from Montenegro, consult with our lawyers. The goal of the citizenship program for Montenegro is to draw in foreign investment. It's interesting to note that the economic plan was also created so that the provinces could provide European comfort to all citizens and visitors, alongside the developed regions. A secure environment for investment is guaranteed by the country's economic growth, which multiplies the desirability of the nation.
The Law on Obligations in Montenegro
The rules connected to any other commercial contract in this country are also applied to the franchise ones.
According to the Law on Obligations in Montenegro, which regulates the obligation relations between two parties who sign a contract, the parties of a contract can be both physical and legal persons and these parties are equal in terms of the law.
The parties of a contract signed in Montenegro are free to arrange their relations as they wish, provided that they abide by the local legislation and by the society morals.
In setting up the obligations, rights and duties of both parties, they have to adopt the principle of good faith and honesty. Our Montenegro lawyers can offer more information related to the Law on Obligations in this country.
If you need to know more about franchising in Montenegro, or for legal advice related to opening a company here, please contact our Montenegro law firm.