Law № 330-II of 24th june 2002 of the Republic of Kazakhstan concerning the integrated business licence (franchise)

Law № 330-II of 24th june 2002 of the Republic of Kazakhstan
concerning the integrated business licence (franchise)

This Law regulates relations which are connected with exercising the integrated business licence (franchise), defines contents of the contract of the integrated business licence and is directed to developing and state promoting of franchise activities in the Republic of Kazakhstan.

Chapter 1. General Provisions

Article 1. General Definitions Which Are Used in This Law

The following general definitions are used in this Law:

1) the set of exclusive rights (the licence scope) - rights to a number of items of intellectual property (the trade mark, the firm name, the service mark, the patent, non-disclosed information, in particular secrets of production (know-how);

2) the integrated business licence (franchise) - business activities under which the right-holder of the set of exclusive rights gives it into use on the paid basis to another person;

3) the integrated licenser (franchiser) - a party to the franchise contract, a right-holder of the set of exclusive rights (licence socpe) which gives to the franchisee the set of exclusive rights into use on the paid basis;

4) the integrated licensee (franchisee) - a party to the franchise contract, a right-user of the set of exclusive rights of the licenser which uses that set for business activities;

5) the licence broker - a physical person or a legal entity which carries out intermediary activities when a franchise contract is concluded and fulfilled;

6) the potential franchisee - a person which carries out negotiations with the right-holder of the set of exclusive rights for the purpose of concluding a contract of the franchise;

7) franchise activities - business activities which are connected with performing the contract of the integrated business licence;

8) franchise relations - public relations between participants to the obligation which are connected between each other by rights and obligations of fulfillment of the franchise contract, that are regulated by rules of law.

Article 2. The Legislation of the Republic of Kazakhstan Concerning the Integrated Business Licence (Franchise)

1. The legislation of the Republic of Kazakhstan concerning the integrated business licence (franchise) is based on the Constitution of the Republic of Kazakhstan and consists of this Law and other regulatory legal acts of the Republic of Kazakhstan.

2. If the international treaty ratified by the Republic of Kazakhstan establishes other rules than ones which are provided for by this Law, then the rules of the international treaty shall be applied.

Article 3. Subjects of Franchise Relations

1. Subjects of franchise relations shall be the physical persons and the legal entities.

2. Subjects of franchise relations as regards the part which is connected with investments shall be applied the legislation of the Republic of Kazakhstan concerning state promotion and protection of investments.