Arco Vara AS concluded a franchise agreement for using its

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Arco Vara AS concluded a franchise agreement for using its trademark in Latvia

On 31 October, 2016, Arco Vara AS’ 100% subsidiary Arco Real Estate AS sold its 70% stake in Arco Vara group’s Latvian brokerage company (commercial name SIA Arco Real Estate) which acted under Arco Real Estate trademark. According to the concluded agreement, SIA Arco Real Estate was obliged to continue providing services under a new trademark from May 2017.

Today, Arco Vara AS and SIA Arco Real Estate concluded a 3-year franchise contract and agreed on the terms for using Arco Real Estate trade mark.

Selling a loss-making subsidiary and replacing it with a cash-generating franchise agreement is part of Arco Vara group’s broader action plan aimed at increasing the yield on the group’s assets.

         Evelin Kanter          Head of Legal Department          Arco Vara AS          Tel: +372 614 4594          evelin.kanter@arcovara.ee          http://www.arcorealestate.com

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