Buying a franchise

Starting a Franchise in Belarus: What Permits Do You Need?

A franchise does not replace the licences and permits needed to operate. Find out how to check the requirements for your business and agree payment terms before obtaining a licence.

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Starting a Franchise in Belarus: What Permits Do You Need?

A well-known brand and ready-made operating instructions do not mean you can open a new outlet as soon as the agreement is signed. When considering a franchise in Belarus, it is particularly important to distinguish between the right to use the network’s business model and government authorisation to carry out a particular activity. Before buying, map out the applicable licensing and permit requirements. This will help you establish whether your chosen format is viable, which documents you will need and when it is safe to make payments.

1. Separate the franchise rights from permission to operate

Franchising in Belarus is specifically regulated by the Civil Code, although there is no separate franchising law. Article 910 describes a comprehensive business licence agreement: the rights holder grants the user a package of licensing rights for business purposes in return for payment. The agreement must be in writing and registered with the patent authority — the National Centre of Intellectual Property.

The word ‘licence’ can be misleading here. A comprehensive business licence does not replace the government licence required to carry out a regulated activity. Registration of the franchise agreement does not confirm that the outlet is ready to open, either.

Government licensing is governed by the Republic of Belarus Law on Licensing. Activity-specific requirements also apply, including sanitary, fire safety, technical and other mandatory standards. The requirements depend not on the brand’s popularity, but on the goods or services your business will offer.

For example, anyone buying a medical franchise must separately check the licensing requirements for the medical services they intend to provide. Do not assume that the network owner’s licence automatically extends to the franchisee’s independent company. Checks must focus on the entity that will actually provide the services and the statutory conditions under which it may operate.

2. List the activities, rather than relying on the name above the door

Start with a detailed description of the proposed outlet. Labels such as ‘health centre’, ‘children’s club’ or ‘beauty studio’ are not enough for a legal assessment: services subject to different legal requirements may be offered under the same name.

Ask the franchisor for a complete list of goods and services, descriptions of procedures, an equipment list and staffing requirements. Establish separately which elements are essential to the format and which can be left out without breaching the agreement.

Then work with a lawyer specialising in the relevant field to draw up a table covering:

  • Activity: exactly what the employee does and what the customer receives.
  • Requirement: whether a licence or another permit is needed, or whether special conditions must be met without a separate authorisation.
  • Responsibility: which organisation obtains the document and ensures compliance.
  • Evidence: which document demonstrates readiness to begin operating.
  • Dependencies: what must be done beforehand, such as recruiting specialists, installing equipment or preparing documentation.

Include additional activities such as delivery, services at customers’ premises, remote services and sales of related products. The authorisation covering the main service will not necessarily cover all these activities.

The result should be a verified requirements map, with references to the relevant legal provisions in your working document. A manager’s verbal assurance that ‘all our partners operate this way’ is not enough to support an investment decision.

3. Check that you can meet the requirements before paying

Having a clear list of documents does not necessarily mean you can obtain them for your proposed business set-up. Check the prerequisites: staff qualifications, equipment specifications, operating processes and requirements for the premises where services will be provided.

Ask the network to show you an anonymised set of documents used to launch a comparable outlet in Belarus. This is a useful reference, but not a legal guarantee: requirements and circumstances may have changed. Documents used by a partner in another country certainly cannot be assumed to work for a launch in Belarus.

Divide costs into two groups. The first covers mandatory expenditure needed to comply with the law. The second covers the brand’s internal standards. If the franchisor describes the purchase of particular equipment as a ‘licensing requirement’, ask them to identify the relevant legal provision and explain how the selected model meets it.

Check staffing dependencies as well. If opening requires specialists with particular qualifications, establish whether they are available in your chosen city and which documents prove that they meet the requirements. A promise of training from the network is not equivalent to obtaining a legally required qualification.

Assign responsibility and a deadline for checking each unresolved issue. If a mandatory condition cannot currently be met, it is better to postpone the purchase than to assume you can resolve the problem after making a non-refundable payment.

4. Agree contractual terms for delays or refusals

Responsibility for licensing and permit risks should be allocated before signing. The franchisor cannot guarantee a government authority’s decision, but the parties can agree who will prepare the documents, pay for the necessary steps and remedy any shortcomings.

Include the following points in your negotiation checklist:

  • which documents and information the rights holder will provide;
  • who will check whether the model meets Belarusian requirements;
  • which payments will be linked to objectively verifiable preparation milestones;
  • when the obligation to open the outlet takes effect;
  • how the launch deadline will be extended if licensing or permit procedures are delayed;
  • what happens to money already paid if the business cannot legally open.

Distinguish between the possible causes of a failed launch. Inaccurate documentation supplied by the network, a buyer’s lack of preparation and changes to mandatory requirements are different situations. For each, agree a notification procedure, a period for resolving the problem and the financial consequences. A lawyer should review these terms against mandatory legal provisions and the rules for registering the agreement.

Do not agree to start a licensed activity temporarily without the necessary authorisation. Even written approval from the franchisor does not override the law.

Practical takeaway: before paying for a franchise, secure three things: a list of activities, a map of mandatory requirements and a contractual allocation of licensing and permit risks. Buying a business model is safer when you understand not only how it generates sales, but also the legal basis on which your company will be able to operate.

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