“Franchise bankruptcy” is not a separate Russian procedure. First identify whether the insolvent party is the brand owner, master franchisee or an individual franchisee and map the contracts between them. The debtor’s role determines continued brand use, entry fees and royalties, equipment return, stock ownership and the correct creditor-claim route.
Identify the Debtor First
The brand, agreement and outlet may belong to three different companies.
Brand Rights Are Limited
Trademark use is lawful only within the registered right, scope and term.
Separate Every Payment
Entry fee, royalty, marketing charge and goods debt require separate legal bases.
Quick self-check
- Who is the right holder and user in the agreement?
- Was the trademark-use grant registered?
- What rights and launch services were actually supplied for the entry fee?
- Who owns equipment, signage, software and stock?
- Is the official bankruptcy notice for the correct legal entity?
Map the Franchise Structure
Check the right holder, user, master franchisee, outlet operator, landlord and suppliers. A shared trading name does not prove that one company signed every contract or received every payment.
Review Agreement and Registration
A Russian commercial concession must be in writing, and the trademark-use grant requires state registration. Review licence elements, territory, term, standards, software and any sub-concession right separately. The document title does not replace substantive analysis.
Separate Payments and Performance
An entry fee may cover rights, launch and training; royalties may cover continuing system use; goods and advertising have their own bases. Record date, purpose, recipient and delivered performance for every payment. Bankruptcy alone does not automatically create a full refund claim.
- export all payments;
- match them to contract clauses;
- separate delivered performance;
- calculate the disputed balance;
- check the claim route and deadline.
Determine the Fate of Brand, Outlet and Stock
If the right holder is insolvent, review the exclusive right and agreement. If the franchisee is insolvent, analyse its lease, equipment, stock and receivables separately. Signage, branded items and access credentials are not debtor property merely because they are located at the outlet.
File Against the Correct Entity
A monetary claim is filed in the case of the particular debtor with agreement, payments and calculation. Current and registered claims depend on the legal origin date. Contract termination, property return and monetary recovery may follow different procedural routes.
| Situation | Review | Key record |
|---|---|---|
| Right holder insolvent | Exclusive right and agreement | Trademark register and agreement |
| Franchisee insolvent | Outlet, stock, lease and debts | Inventory and contracts |
| Entry fee paid | Delivered performance and balance | Payment and launch record |
| Royalty charged | System-use period | Report and calculation |
| Third-party equipment onsite | Owner and identification | Delivery, lease and serial numbers |
Frequently Asked Questions
Does bankruptcy automatically terminate the franchise?
Not always. Review the insolvent party, agreement, exclusive right and applicable termination ground.
Must the entire entry fee be refunded?
No. Contract terms, delivered rights and services, calculation and claim status all matter.
May the outlet keep using the brand?
Only under a valid, properly recorded right; earlier payment alone is insufficient.
Does franchisor stock enter the franchisee estate?
Only where title passed to the debtor; supply, commission, custody and return require separate review.
Is a claim filed against the whole network?
No. File against the legal entity obliged under the relevant agreement.
Legal Sources
- Russian Civil Code: Commercial Concession, Articles 1027–1040.
- Federal Law No. 127-FZ: Claims and Insolvency Estate.
- Plenum Resolution No. 35 on Insolvency Claims.
Related guides: corporate bankruptcy, current payments and filing a registered claim.
Franchise Participant Stopped Performing?
We can map the network, brand rights, payments, assets and claim route without promising a predetermined result.
BOOK AN INITIAL CONSULTATIONGeneral information as at 28 August 2026. Treatment depends on the actual participant, agreement, rights registration, performance and proceeding stage.