The East Europe Franchise Association - A Comprehensive resource for effective franchise business in East & Central Europe.

East and Central Europe Market Intelligence

Legal Country Overviews
These are legal overviews of key CEE countries.

Latvia

The flag of Overview:
Legal regulation of franchising relations in Latvia started in 2008 after passing the new version of the Commercial Law the respective provisions of which related to franchise came into effect as recently as 1 January 2010. Same as in Lithuania, franchise-related provisions can also be found in legislative acts on competition, real estate, intellectual property and taxation. The Commercial Law of Latvia offers a broad definition of a franchise contract. It is defined as a contract under which a holder of rights (franchisor) grants another party (franchisee) a right to use a trademark, other intellectual property rights, commercial practice, proprietary (manufacturing or service provision) information for the purpose of sale of goods and/or rendering of services in accordance with the concluded franchise contract and following the procedure developed and confirmed by the franchisor. Latvia’s national legislation also allows contracting parties a good deal of freedom in deciding regarding the content of franchise, but compulsory liabilities of the franchisor are explained in a much better way and very clearly regulated. It also regards written form of the contract and remuneration basis as mandatory elements of a franchise contract.

Latvia applies differentiated tax tariffs to franchise revenue, the tariffs range between 9 and 26 per cent depending from the legal status and form of the entity benefitting from franchise revenue.

Legal Aspects of Franchising prepared by International Law Firm VARUL

For a much more in-depth view of franchising in Lithuania and Latvia, please download the following PDFs.

"Buying a Franchise - Highway to Business Success" - PDF (4.9Mb)
"Study Report On Franchising Attractiveness Of Lithuanian And Latvian Border Regions" - PDF (2.8Mb)
Published By: Lithuanian Franchise Centre

 

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