Publication date: 09.09.2024
Franchising in Poland: legal peculiarities for Ukrainian entrepreneurs
Franchising is a popular business model that allows entrepreneurs to develop their own business under a well-known brand. For Ukrainian businessmen seeking to enter the Polish market, franchising can be an effective tool for expanding their business. However, it is important to understand the legal peculiarities of this process in Poland in order to avoid potential risks and maximize the chances of success.
Legal regulation of franchising in Poland
There is no separate definition of franchising in Polish law. Instead, these relations are governed by the general provisions of civil and commercial law. This means that Ukrainian entrepreneurs need to carefully study all aspects of the franchise agreement and related legal issues.
Question
What are the main elements of a franchise agreement in Poland?
Answer
A franchise agreement in Poland must contain a detailed description of the rights and obligations of the parties, the terms of use of the trademark, know-how and other intellectual property, the term of the agreement, the territory of operation, the amount and procedure for payment of royalties, as well as the terms of termination of the agreement. It is important that all these aspects are clearly spelled out to avoid future disputes and ensure the stability of business relations.
For Ukrainian entrepreneurs, the service of legal analysis of the documents and the service of legal analysis of a situation are critically important before signing a franchise agreement in Poland. These services will help identify potential risks and ensure that the agreement meets the interests of the franchisee.
Registration of a franchise business in Poland
To start a franchise business in Poland, a Ukrainian entrepreneur needs to register a legal entity or open a branch. This process includes several important steps that require careful preparation and attention to detail.
The main steps of registering a franchise business:
- Choosing the legal form of the company
- Preparation and notarization of constituent documents
- Obtaining an identification number (NIP) from the tax office
- Registration in the National Court Register (KRS)
- Opening a bank account in a Polish bank
- Registration in the social security system (ZUS)
The service of a lawyer in Poland can greatly facilitate the registration process and help to avoid common mistakes that can delay the start of business or lead to problems in the future.
Protection of intellectual property in franchising
One of the key aspects of franchising is the use of trademarks and other intellectual property. Poland has a trademark registration system that ensures their legal protection. It is important for Ukrainian entrepreneurs to understand the peculiarities of this system in order to effectively protect their rights.
Important aspects of intellectual property protection:
- Registration of a trademark with the Polish Patent Office
- Conclusion of license agreements for the use of intellectual property
- Protection of trade secrets and know-how
- Monitoring of possible violations of intellectual property rights
- Development of a defense strategy in case of violations
The service of legal opinion of a lawyer will help to assess the risks and develop an effective strategy for the protection of intellectual property within the franchise business in Poland.
Tax aspects of franchising in Poland
Polish tax legislation has its own peculiarities that must be taken into account when running a franchise business. It is important for Ukrainian entrepreneurs to understand what taxes they have to pay and in what amount, as well as what opportunities exist to optimize the tax burden.
The main taxes for franchise business in Poland are:
Corporate income tax (CIT) - 19% or 9% for small taxpayers
Value added tax (VAT) - standard rate of 23%, reduced rates of 8% and 5%
Personal income tax (PIT) - progressive scale with rates of 17% and 32%
Social contributions - about 35% of the employee's salary
The service of lawyer's consultation on tax issues will help to optimize the tax burden and avoid possible sanctions from the Polish tax authorities.
Labor law and hiring personnel in the franchise business
When developing a franchise network in Poland, Ukrainian entrepreneurs will have to face the peculiarities of local labor legislation. It is important to consider the following aspects:
Types of employment contracts (indefinite, fixed-term, probationary)
Minimum wage (regularly reviewed by the government)
Working hours and vacations (standard working week - 40 hours, minimum vacation - 20 days)
Social guarantees for employees (health insurance, pension)
Hiring and dismissal procedures for employees
The service of legal analysis of a situation with labor relations will help to avoid violations of the law and build an effective HR management system in the franchise business.
Peculiarities of franchise relations in Poland
Although franchising in Poland is based on general principles, there are certain peculiarities that Ukrainian entrepreneurs should take into account:
- The absence of special legislation on franchising requires special attention to the drafting of the agreement
- The need for a detailed description of all aspects of cooperation in the franchise agreement
- The importance of protecting trade secrets and know-how within the franchise relationship
- The possibility of applying competition law to franchise agreements
- Specifics of regulation of advertising and marketing activities within the franchise network
The legal analysis of the documents service will help to take into account all the nuances and develop an effective strategy for the development of franchise business in Poland.
Question
What risks can arise when running a franchise business in Poland?
Answer
When running a franchise business in Poland, various risks may arise, including breach of the franchise agreement, misuse of intellectual property, non-compliance with quality standards, conflicts with employees, tax issues and violation of competition law. In addition, there may be risks associated with cultural differences and local market characteristics. To minimize these risks, it is important to conduct regular legal due diligence of your business and seek professional lawyer's consultation in a timely manner.
What happens if you don't solve these problems? Ignoring the legal aspects of the franchise business in Poland can lead to serious financial losses, loss of reputation, lawsuits, and even business closure. Therefore, it is extremely important to pay due attention to legal issues at all stages of franchise network development.
Dispute resolution in franchise relations
Despite careful planning, conflicts may arise in franchise relations. Polish law provides for various dispute resolution mechanisms, each of which has its advantages and disadvantages:
- Pre-trial settlement - an attempt to resolve the conflict through negotiations
- Mediation - involvement of a neutral third party to find a compromise
- Arbitration - consideration of a dispute in a specialized arbitration court
- Litigation - resolution of a dispute in Polish state courts
The legal opinion service will help you choose the most effective way to resolve a dispute and protect the interests of a Ukrainian entrepreneur within the framework of franchise relations in Poland.
Financial aspects of franchising in Poland
The financial side of franchising in Poland requires special attention from Ukrainian entrepreneurs. It is important to understand the structure of costs associated with the acquisition of a franchise and running a business.
Key financial aspects of franchising:
- Initial franchise fee
- Regular royalty payments
- Marketing fees
- Expenses for rent and equipment of the premises
- Expenses for staff training
- Working capital to start the business
The service of written consultation from an experienced lawyer will help you understand the financial aspects of franchising and plan a budget taking into account all the necessary expenses.
Marketing restrictions in franchising
In Poland, there are certain restrictions on marketing activities that must be taken into account when running a franchise business. These restrictions may relate to advertising of certain goods (e.g. alcohol or tobacco products), use of personal data of customers, conducting promotional activities, etc.
The service of a legal opinion on marketing strategy will help to avoid violations of the law and develop an effective advertising campaign within the franchise network.
Franchising in Poland opens up great opportunities for Ukrainian entrepreneurs, but requires careful legal support at all stages. From business registration to intellectual property protection and dispute resolution, each aspect requires a professional approach and a deep understanding of Polish law. The online lawyer service and the online attorney service from the legal marketplace CONSULTANT will help you get qualified assistance at every stage of your franchise business development in Poland. Do not risk your business - contact professionals today to ensure a solid legal foundation for your success in the Polish market!
