No Paper Title Author Name Page No

MERICAN Journal of Public Diplomacy and International Studies
www.
 grnjournal.us 
 
However, it should be noted that there is a difference between the concept of franchising and 
complex business license (franchising) agreement. If franchising is a way of organizing a 
business, a complex business license (franchising) agreement is a civil-legal relationship. [5 ]. 
In the legal literature, the Civil Code of the Republic of Uzbekistan states that this contract is 
called "complex business license (franchising)" and has a special meaning: 
Firstly, the naming of this contract in this way (complex business license (franchising)) comes 
from the essence of the relevant legal relationship. 
Secondly, the term "franchising" in the name of the contract serves to correctly apply the name 
of the contract. 
Thirdly, all the objects that one party (licensor) gives to the other party on the basis of the 
contract can be covered only by the phrase "complex business". [6]. 
In my opinion, the franchising contract in the Civil Code of the Republic of Uzbekistan can be 
referred to as a complex business license (franchise) contract as a reason for the transfer of a set 
of absolute rights by the licensor to the licensee.
In general, such designation fully complies with international law norms and practices. Although 
the franchising agreement is called differently in foreign countries, we can see that the 
approaches to expressing the concept do not differ. For example, in accordance with the Civil 
Code of the Russian Federation, in accordance with the commercial concession contract, the 
right holder, on the one hand, may or may not indicate the term to the user, to grant the user the 
comprehensive rights that belong to the right holder, and the user shall use the rights in 
accordance with the restrictions set forth in the contract and the law, and undertakes to pay the 
specified fee [7 ].
O.A. Orlova emphasizes that the commercial concession of the Russian Federation and the 
franchising agreement in foreign countries are fully compatible with each other in most respects. 
[8 ].
M.I. Kulagin believes that the main goal of operating on the basis of franchising for large 
manufacturers is to create a distribution system for their products [9].
V. V. Pilyaeva emphasizes that the commercial concession (franchising) contract reflects the 
relationship between big business and small business [10]. 
Indeed, agreeing with the opinion of the scholars who have studied the franchise contract, it 
should be noted that in most cases, large companies participate as licensors, and small business 
representatives participate as licensees. 
An increase in the number of licensees operating on the basis of a complex business license 
(franchising) agreement indicates that the licensor is gaining a foothold in new territories and 
new markets. For example, let's analyze the advantages of a large company entering another 
country on the basis of franchising. There are more than a hundred administrative territorial units 
at the state level. Therefore, more than one hundred new licensees can be established. We know 
that all segments of the population try to buy products, use services and work of famous and 
reliable firms and companies as much as possible. Therefore, operating on the basis of a complex 
business license (franchising) contract is beneficial both for the residents of that area, as well as 
for business entities acting as licensors and licensees. If a well-known brand enters a new market 
through branches, the costs associated with setting up the branch and delivering its products to 
the wholesale and retail representatives who receive its products are also considerable. Also, if 
the branch suffers economic losses or is declared economically insolvent (bankrupt), this 
situation, in turn, will cause material damage to the licensor, and the main firm or company will 
be responsible for the branch's obligations to creditors. 

---

139
A