We advised cleaning service company Švaros broliai on developing a franchising model. So far this year the company has already concluded four transactions successfully transferring tunnel car wash businesses to new operators under a franchise agreement.
Among the first Lithuanian companies to develop franchising model
According to Ignas Pranskevičius, Executive Director of Švaros Broliai, the franchising model is one of the most efficient ways for the company to ensure faster development and attract investment. He comments: “Although many of our favourite restaurants, hotels, entertainment places, shops or even gas stations are foreign franchises bought by local entrepreneurs, this business model is still not widely known or developed in Lithuania. We do not even have a simple Lithuanian term to describe a franchisor. Becoming a franchise provider means we have created a car cleaning services business model which can easily be applied in Lithuania or abroad and is certainly successful.”
Švaros broliai: leader in its field
As the largest specialized car washing and cleaning services network in Lithuania, Švaros broliai has been providing all cleaning services for two decades. The company operates a network of self-service car washes, cleaning centres and highly advanced tunnel car washes in five Lithuanian cities.
The company has established a network of seven tunnel car washes in Vilnius, Kaunas and Klaipėda. All four car washes sold this year are located in Vilnius. According to the head of the company, franchises of tunnel car washes already operating in Kaunas and Klaipėda can also be offered to investors. In addition, Švaros broliai will offer an option to buy “greenfield” franchises for those who want to build a new tunnel car wash in their own or leased real estate object.
Our services and project team
Our team advising the client on all legal issues related to development of the franchising model:
- partner Žygimantas Pacevičius with counsel Stasys Drazdauskas and senior associate Jonas Kiauleikis advised on franchise and additional agreements plus sale-of-business-as-a-going-concern matters;
- partner Saulė Dagilytė with senior lawyers Gerda Skirbutienė and Rasa Mikutienė advised on taxation issues on sale of a business as a going concern and franchise model;
- senior associate Lina Barniškienė advised on real estate issues;
- senior associate Monika Mališauskaitė-Vaupšienė advised on competition law issues.