Russian Franchise Association

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Russian Franchise Association
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Russia turned into acknowledged growing market in
the consumer sphere.

• In the last ten years the Russian market has
  witnessed the creation and development of a
  number of world-known Western franchise
  companies such as Alphagraphics, English
  First, Carlo Pazolini, Kodak, Sbarro
  Subway, Xerox, and others.
• Russian franchising goes hand in hand with the
  development of international franchising.
  Rostiks, 1C, Ekonika, Enton,
  Perekrestok and other new Russian companies
  have been dynamically developing as well.

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• The Chapter ? 54 Commercial concession of the
  Civil Code of Russian Federation regulates
  franchising in Russia. According to the Chapter ?
  54 franchise agreement is called Agreement of
  Commercial concession, franchisors are called
  Right-holders, franchisees are called Users.

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Russian Franchise Association

• The Russian Franchise Association was formed in
  1997 by leaders of Russian franchise community as
  not-for-profit organization to support and
  protect the needs of its members and to create
  more favorable legal and business environment for
  the expansion of franchising in Russia. At first
  the RFA was registered as USA not-for-profit
  organization because there was no proper
  legislation in Russia. According to the Russian
  Law for not-for-profit organizations in 1999 it
  was reestablished as Russian not-for-profit
  organization with the name Franchise
  Association and the short name RFA.

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According to its Articles the ASSOCIATION shall
perform the following activities

• provide industry training in management
  principles, provide an opportunity to make use of
  industry-related literature, disclose the market
  possibilities of a given industry and give
  introductory consultations
• provide assistance to current and potential users
  in the sphere of scientific research, on
  questions associated with setting up firms, legal
  regulation, market research and financing
• disseminate material on the theory and practice
  of franchising in the media (in the manner
  established by the legislation)
• organize international franchising, including
  adapting foreign franchising systems to the
  conditions on local markets
• set up subsidiaries, divisions and representative
  offices of the ASSOCIATION in foreign states, in
  accordance with their legislation
• perform other types of activity not prohibited by
  the legislation and associated with attaining the
  aims of the ASSOCIATION.

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MAIN FUNCTIONS OF RFA ARE TO

• 1. Set and enforce standards of ethical business
  amongst members.
• 2. Coordinate and offer educational programs,
  seminars and exhibitions specially oriented to
  franchising matter.
• 3. Undertake promotional activities to promote
  franchising as a successful marketing business
  concept.
• 4. Provide connection and dialog with government
  departments and / or agencies on matters
  concerning franchising and its application.
• 5. Serve as a forum for exchange of experiences
  and expertise among members.
• 6. Establish and maintain affiliations with
  counterpart organizations globally.
• 7. Develop and maintain affiliations with local
  industry trade organizations representing
  distributors, retailers and service industry
  generally.
• 8. Host international franchise trade and
  investment missions and assist in familiarizing
  them with the potential in Russia.

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Membership

• Any franchisor, franchisee or any company
  responding the membership requirements envisaged
  by the Articles of Association, may, on
  submission of a written application, be elected
  as a member of the ASSOCIATION in the manner
  established in the Articles of Association. After
  consideration of the application and preparation
  of corresponding materials, the application and
  all accompanying documents shall be submitted for
  approval by the Board of Directors. The Board of
  Directors shall have the right independently to
  make decisions to refuse or postpone acceptance,
  irrespective of formal compliance by the
  applicant with the minimum acceptance
  requirements for the given category for which the
  application has been submitted. The Board of
  Directors shall not be obliged to inform the
  applicant of the reasons for such rejection or
  postponement of membership acceptance.

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The Board of Directors

• During the period between General Meetings,
  the Board of Directors shall function as the
  working, collective management body. The Board of
  Directors shall consist of at least 5 (five)
  members. The composition of the Board of
  Directors shall be determined by a general vote
  at the Annual General Meeting of the ASSOCIATION
  for a term of 2 (two) years. Any member of the
  ASSOCIATION may appoint candidate members of the
  Board of Directors.

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The Code of Ethics

• The ASSOCIATION has the Code of Ethics. Every
  member of the ASSOCIATION, on submission of an
  application for and acceptance of membership of
  the ASSOCIATION, shall conscientiously follow the
  letter and spirit of the Code of Ethics. In the
  event that the ASSOCIATION receives information
  on a possible violation by any of the members of
  the ASSOCIATION of the Code of Ethics, the Board
  of Directors shall demand that the given member
  of the ASSOCIATION present information concerning
  the circumstances, confirming for the ASSOCIATION
  that the Code of Ethics has been and is observed
  by the given member.

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Members of the ASSOCIATION may belong to one of
the following categories

• Franchisor - Right-holder under a contract of
  commercial concession
• Franchisee - User under a contract of commercial
  concession
• Supplier - Industry consultant/service provider
• Other categories.

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RFA membership is growing
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• RFA address
• 2-nd Proezd Perova Polya, 9
• 111141, Moscow, Russia
• Tel./Fax [phone]
• E-mail rusfranch_at_yandex.ru
• You can find on our Web http//www.rarf.ru/eng/
  the following materials
• - Articles of Association
• - The Code of Ethics of RFA
• - RFA membership list
• - RFA Board appointments list
• - Civil Code of Russian Federation - 54 Chapter