Legal Mechanisms for Protecting the Rights of a Franchisor in Turkmenistan in the Context of Applying Foreign Law in Contracts

The Turkmenistan office of GRATA International, within the framework of Industry and Trade sector and in the practice areas of corporate and contract law, as well as intellectual property, conducted a legal analysis of cross-border transactions in the franchising sector. The primary objective of the project was to ensure that the franchisor retains effective legal remedies and is able to protect its rights, including the enforcement of decisions, within the territory of Turkmenistan.

As part of the engagement, particular attention was paid to matters of legal succession arising from changes in partnership arrangements in long-term projects, as well as to the development of robust mechanisms for securing contractual obligations. A key focus of the work was the adaptation of standard international legal structures and contractual instruments to the mandatory rules of Turkmen national legislation, in order to ensure that the relevant transactions would be duly recognized as valid and enforceable under the local legal framework.

GRATA International Turkmenistan team developed an approach aimed at preserving the commercial flexibility of foreign-law governed contracts while simultaneously mitigating the risks associated with potential invalidity of contractual documentation in Turkmenistan. As a result, the client obtained a clear and practical understanding of how to structure contractual relationships with local partners so that the chosen legal protection mechanisms operate effectively in Turkmenistan, thereby ensuring legal certainty, business continuity, and overall transactional security.