Regarding the cancellation of the commercial concession agreements

Objective. Commercial concession agreement is the most important legal mechanism in franchising transactions. The aim of the current article is to examine the legal regulation of the commercial concession agreements cancellation, and to find its weaknesses. It is based on the existing courts practice. This topic was only briefly observed in the legal literature, despite rather wide enforcement base. The further research is needed to improve the Russian franchising regulation and to minimize the amount of arising disputes. Conclusions. Based on the analysis of the general and special regulations related to commercial concession agreements cancellation it is stated, that parties have unequal opportunities to protect their infringed rights. The Civil Code of Russia allows the user (franchisee) to protect his rights only through court, although the rights holder (franchisor) has a right to refuse from fulfilling the contract in case of the substantial breach. The reasoning to grant such opportunities to the user is based on the amount of disputes concerning the registration and other obligations of the rights holder.

commercial concession, franchising, rights holder, user, contract cancellation, substantial breach