CEU eTD Collection (2025); Arsenidze, Mariam: Franchising as a Tool for Business Growth in Georgia: What Comparative Law Can Offer

CEU Electronic Theses and Dissertations, 2025
Author Arsenidze, Mariam
Title Franchising as a Tool for Business Growth in Georgia: What Comparative Law Can Offer
Summary Franchising is a successful worldwide business model that creates jobs, promotes innovation, boosts entrepreneurship and, in turn, fosters economic growth. The problem is that, in Georgia, this business model is underdeveloped, among other reasons, due to various legal and regulatory challenges that stymie its organic development, although franchising is already a relatively widely known business model. Both international and local franchise systems are already operating in the country. For these reasons, this thesis is primarily focused on the legal aspects of franchising in Georgia, rather than its economic aspects.
More specifically, the thesis aims to highlight the importance of finding a proper legal balance between franchisors, who seek to protect their intellectual property and business models, and franchisees, who need sufficient autonomy and legal protection to operate successfully.
The thesis begins with an examination of the law on franchising in Georgia and compares it with best practices in jurisdictions that have well-established legal frameworks. The top model for analysis in this thesis is the United States, specifically the Federal Trade Commission (FTC) Franchise Rule, as well as the regulations of the State of California, which are among the most franchisee-protecting systems. Furthermore, a closer examination will also be conducted of the European Union, France, and Germany - the latter being a major civil law jurisdiction that has served as the primary model for Georgia in the past.
Lastly, the thesis will argue that improving the legal provisions governing franchising in Georgia is essential to unlocking its full potential. Drawing on doctrinal analysis, relevant case law, and business practice insights, the thesis demonstrates that a well-defined and balanced legal framework can make franchising a more reliable and effective business model. Such a reform would significantly contribute to the country’s entrepreneurial landscape and create new opportunities for both local and international businesses.
Supervisor Tajti, Tibor
Department Legal Studies LLM
Full texthttps://www.etd.ceu.edu/2025/arsenidze_mariam.pdf

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