Buying a Franchise in Belarus: How to Secure Premises Approval Before You Commit

Being part of a franchise network does not guarantee that your chosen premises will be suitable for opening an outlet. The franchisor may approve the address, only for you to discover later that the electrical capacity is insufficient, signage is not permitted or the landlord will not approve the ventilation works. Before buying a franchise, it is important to coordinate three decisions: whether the premises are technically suitable, whether the brand has given written approval and whether the lease terms work for you. None of these replaces the others.

1. Obtain the premises requirements before paying anything

Start with a written specification from the franchisor, rather than property listings. Phrases such as ‘street frontage’ or ‘good footfall’ are not enough: different representatives of the network may interpret them differently. The requirements should allow you to assess a specific property and estimate the work needed in advance.

Ask for a document setting out:

• acceptable floor area and the layout of customer and back-of-house spaces;
• required electrical capacity and water supply requirements;
• requirements for ventilation, drainage, unloading and storage;
• requirements for the entrance, accessibility and signage;
• restrictions relating to floor level, neighbouring occupiers and opening hours;
• a list of equipment that affects the building services design.

Separate mandatory requirements from preferences. If exceptions are allowed, establish who has authority to approve them and how that approval must be documented. A manager’s verbal permission may not satisfy the specialist who later signs off the outlet before opening.

Also ask for an explanation of the selection process: what information the prospective franchisee must submit, whether a representative needs to visit, how long approval remains valid and when a reassessment may be required. If property selection is charged separately, specify the deliverable: a shortlist, a survey or an assessment of a particular address. Simply sending property listings does not mean that suitable premises have been found.

2. Distinguish brand approval from legal suitability

In Belarus, franchising is specifically regulated by the Civil Code: Chapter 53 covers the comprehensive business licence, the legal framework for franchising. There is no separate franchising law. The agreement must be in writing and registered with the National Centre of Intellectual Property. However, registration does not confirm that the premises are suitable or replace the requirements governing the outlet’s operations.

Leases are governed by civil law. Depending on the property and the intended activity, you must also take account of building, public health, fire safety and other mandatory requirements. For activities requiring a licence, check the licensing conditions separately: the right to operate under a brand does not itself provide that authorisation.

Before signing the lease, ask the owner or their representative for:

• documents confirming their right to let the property;
• technical documentation and an up-to-date floor plan;
• details of available utility capacities;
• conditions for carrying out works and connecting equipment;
• written confirmation of their position on signage, unloading and access hours.

If you are taking a sublease, check the head lease, whether subletting is permitted and how much of the term remains. Make provision for what happens if the head lease ends: franchisor approval will not protect you from losing the premises for that reason.

Commission a suitably qualified specialist to check whether the premises can accommodate your particular outlet, rather than a generic shop or café. For example, the presence of a ventilation duct does not prove that the equipment specified in your design can be connected to it. Ideally, obtain the findings in writing, with a list of restrictions and approvals needed.

3. Agree the sequence of commitments and payments

A risky situation arises when rent is already being paid and the franchise fee has been paid, but the final decision on the premises is still outstanding. To avoid this, draw up a coordinated sequence of steps for the prospective franchisee, franchisor and landlord.

A practical sequence might look like this:

1. The franchisor provides its requirements and carries out a preliminary assessment of the property.
2. The prospective franchisee checks the documents and the project’s technical feasibility.
3. The landlord approves the necessary works in writing.
4. The franchisor approves the address, layout and agreed departures from its standards.
5. The parties sign the prepared agreements and complete the required formalities.
6. The franchisee begins the works and makes payments according to the agreed schedule.

This is not a legally prescribed procedure, but a basis for negotiation. If the owner requires a reservation payment, document its terms separately: the reservation period, amount, grounds for a refund and consequences if either party withdraws. Do not assume that any payment described as a ‘reservation fee’ is automatically refundable.

In your documentation with the franchisor, specify what happens if the premises fail the technical assessment: whether the search continues, whether the opening deadline is extended and which payments are refunded. Discuss the fit-out period and the start dates for different charges with the landlord. A rent-free period does not necessarily mean that utility and service charges are waived.

4. Document final approval and any changes

Final approval should relate to a specific property and a specific version of the design. Include the address, details identifying the premises, the date of the floor plan and a list of permitted departures from the standards. Check that the person signing on behalf of the franchisor has the authority to do so.

Allocate responsibility for the cost of changes separately. If the network requires a counter to be moved or a building services solution to be changed after approving the design, the agreement should explain who pays for the alterations and how the opening deadline will be revised. Do not leave this at the level of a promise to ‘work it out when the time comes’.

Compare the lease term with the franchise term. The right to use the brand is of limited help if the lease expires sooner and renewal depends entirely on reaching a new agreement with the owner. Also discuss what happens to approved improvements, any obligation to reinstate the premises and arrangements for contractor access.

Practical takeaway: before incurring substantial non-refundable costs, obtain three written confirmations: the premises are technically suitable, the landlord permits the necessary works and the franchisor approves the specific design. Then check that the agreements are consistent on deadlines, payments and the consequences if approval is refused.