Franchising in Belarus: How to Check Premises Before Signing a Lease

Premises may suit your budget and preferred location yet still be unsuitable for your chosen franchise. Signing a lease is particularly risky when all you know about the brand’s requirements comes from a manager’s verbal assurances. For a prospective franchisee, checking a property means ensuring that three things align: the network’s standards, the permitted use of the premises and your obligations to the landlord. Do this before paying a deposit, starting refurbishment or ordering signage and branding.

1. Obtain the property requirements before you start searching

Ask the franchisor for a written specification for premises suited to your particular operating format. A small service point and a full retail outlet may have different requirements, even within the same brand. A statement such as ‘premises above a certain floor area will be suitable’ is no substitute for a detailed list of requirements.

Ideally, the specification should cover:

• the required floor area and layout;
• electrical capacity, water supply, drainage and ventilation;
• arrangements for installing equipment, storing goods and unloading deliveries;
• requirements for entrances, shop windows, accessibility and opening hours;
• locations for signage and other branding elements;
• restrictions that would prevent the network from approving the property.

Separate mandatory requirements from preferences. If the franchisor allows an exception, ask for written confirmation for the specific address. Otherwise, after you sign the lease, another member of the franchise team may insist that the design be revised to meet the standard requirements.

Also clarify the approval process: who inspects the property, which documents are needed, how long a decision takes and who has authority to make it. Separately, establish whether a specialist’s visit carries a fee and exactly what you will receive afterwards.

2. Distinguish brand approval from legal suitability

In Belarus, franchising is specifically regulated by the Civil Code, although there is no separate franchising law. Article 910 provides for a comprehensive business licence agreement, while Article 910¹ requires the agreement to be in writing and registered with the patent authority. Registration is handled by the National Centre of Intellectual Property (NCIP).

However, registration of a franchise agreement does not confirm that the premises are suitable and does not replace any permits required for the particular business activity. Nor does the franchisor’s approval of an address amount to clearance from a public authority.

The legal aspects of leasing are governed by the Civil Code’s general provisions on leases. You also need to check the requirements applicable to your premises and activities, such as sanitary, fire safety and building requirements, as well as licensing requirements where relevant. Which rules apply depends on what you intend to do on the premises.

Before signing the lease, ask the landlord for documents confirming their right to let the property, a floor plan and details of its designated use. Compare the documents with the property’s actual condition: partitions, entrances and building services may have changed.

Bring in a technical specialist to check electrical capacity, ventilation and whether the necessary equipment can be installed. Ask a lawyer to check whether your intended use is permitted and what conditions apply to carrying out works. Their role is not to repeat the franchise network’s view, but to identify obstacles to opening independently.

For example, a brand-approved interior design does not necessarily mean you can alter the façade or install additional ventilation. Such works may require separate approvals. Establish this before commissioning the design or making non-refundable payments.

3. Align the lease terms with the franchise requirements

The lease and the franchise agreement involve different parties. A promise from the franchise network’s manager does not oblige the landlord to allow signage, while the property owner’s promise to ‘help you get open’ does not oblige the franchisor to accept the premises.

Draw up a table listing each brand requirement, the action needed from the landlord, the supporting document, the person responsible and the deadline. For example, late opening hours must be compatible with access to the building, while mandatory unloading arrangements must comply with the rules governing use of the surrounding area.

Before signing the lease, discuss:

• which refurbishment and installation works are permitted;
• who is responsible for ensuring that building services meet the required specifications;
• where signage can be installed and who obtains the necessary approvals;
• when the premises will be handed over and when rent starts to accrue;
• whether there will be a fit-out period during which full rent is not payable;
• who owns any improvements and what must be reinstated when you vacate the property.

A rent concession or a right to withdraw from the lease if the premises are not approved does not arise automatically: these terms must be negotiated and expressly included. Read the conditions for returning the security deposit as written, rather than relying on verbal promises.

Compare the duration of both agreements. If the lease expires significantly earlier than your right to operate under the brand, you risk having to relocate and invest again. Also distinguish a contractual option to renew the lease from a non-binding promise to ‘sort something out later’.

4. Set the order in which you commit funds

The safer approach is to obtain the network’s requirements first, then check the property, and only afterwards make irreversible financial commitments. If the landlord wants a quick decision, discuss a legally documented interim arrangement with clear deadlines for checks and clear consequences if you decide not to proceed, rather than transferring money on the strength of a verbal reservation.

The franchisor’s approval should identify the address, the specific premises, the layout and the outlet format. If approval is conditional, list the conditions and the cost of meeting them. The phrase ‘broadly suitable’ does not tell you whether you can start refurbishment.

Before making a final decision, assemble a single set of documents: the brand’s technical specification, inspection findings, the landlord’s documents, approval of the premises, an estimate of adaptation costs and draft agreements. Check that they do not contradict one another. Pay particular attention to costs you will still have to bear if the opening does not go ahead.

Practical takeaway: do not lease premises simply because a brand representative has approved them. First confirm their technical and legal suitability, document the permitted works and agree what happens if the opening falls through. Only then move on to refurbishment and other non-recoverable expenditure.