Even since 1998, Romania has recognized the necessity of promoting and supporting the franchising by setting a franchise specific legislation, the Law no 79/1998. The Law defines the basic principles of a franchise agreement as a sustained communication between persons or corporate entities whereby the Franchiser grants a Franchisee the right to exploit or develop a particular know-how or intellectual property right.
Along with the Franchise Law, some stipulations of the Competition Law no. 21/1996 are applied, especially the instructions for enforcing Art. 5 for the vertical agreements which regard elements found, usually, in the franchise agreement: exclusiveness clauses, sharing the markets and the suppliers, a selection of approved suppliers, of the selling prices.
The two laws complete one another to assure a good and competitive environment to franchising in Romania.
