Over 400 Companies Have Withdrawn From Russia. But Some Western Brands Are Locked in

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For some Western brands like Burger King, Subway and Marks & Spencer, exiting the Russian market is easier said than done.

The Subway name appears in Russian on a sign outside a Subway fast food restaurant in Moscow, Russia, on Sunday, April 7, 2013.

"Some franchisees do not want to stop operation because they claim that the Russian people are not the problem and the brand should continue to serve its customers," Craig Tractenberg, a partner at the law firm Fox Rothschild, said. That leaves many Western brands in a predicament as to how to manage their legal duties while safeguarding their brands in a global landscape that is overwhelmingly opposed to Russia's war.

"Some agreements contain excuse of performance language which could benefit franchise brands. For example, if supply chain issues make it impossible to perform, franchisors may argue that performance is excused," Jackson said.A visitor walks past the entrance to a Marks & Spencer Plcstore in the Afimall City shopping and entertainment complex at"Moscow City" business center in Moscow, Russia, on Friday, May 17, 2013.

 

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