On 12 February 2015, the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On Amending Certain Legislative Acts of Ukraine with Respect to Simplification of Conduct of Business (deregulation)" (the "Law"), which entered into force on 5 April 2015.
Among other innovations introduced by the Law, it provides for exclusion from the Civil and Commercial Codes of Ukraine of provisions concerning the requirement of the state registration of franchise agreements and the implications of the absence of such registration.
Thus, with effect from 5 April 20015, the Law cancelled the requirement of the mandatory state registration of franchise agreements as well as the provisions that prevented the parties thereto to refer to unregistered agreement in case of dispute and in relations with third parties.
In view of the amendments introduced by the Law, currently, it will be sufficient for the parties to a franchise agreement to sign a relevant agreement.
It should be noted that the abandoned by the Law requirement of the mandatory state registration of franchise agreements due to the absence of a mechanism of such registration, on practice created a lot of difficulties in legal enforcement of such agreements. Therefore, its abandonment will allow to conclude franchise agreements which would have full legal force both for the parties thereto and third persons.