Lack of national legislation
In Bulgaria there is still no law on franchising. Franchising is not mentioned in either the Commercial Law or the Law on Obligations and Contracts.
There is a description of the franchise in the Law on Corporate Income Tax. According to it: “Franchise” shall denote the aggregate of industrial and intellectual property rights regarding trade marks, trade names, logos, models, designs, copyright, know-how or patents, these rights being granted in return for remuneration, for being used in selling goods and/or providing services.”
The document, which regulates the relations between the two sides – the franchisor and franchisee is the contract.
Precisely because of the lack of statutory rules in the field of franchising, the role of the Bulgarian Franchise Association is essential in building a dialogue towards the support of the business by the local authorities – the Executive Agency for Promotion of Small and Medium Enterprises, Ministry of Economy, Energy and Tourism; universities; organizations in support of the business.
BFA will work in favor of the franchise business by making connections with local authorities to complete the legal framework relating to possible incentives and preferences for the participants in the cluster.
It will boost the “public-private partnership” to build the necessary infrastructure to attract strategic local and foreign investors throughout the country.