Ukrainian President Volodymyr Zelelnskyy in his handle to U.S. Congress Wednesday reiterated requires all international manufacturers to exit Russia — a market “flooded with [Ukrainian] blood” — as a part of ongoing efforts to use financial strain to the pariah state.

Greater than 400 firms have introduced their withdrawal from Russia for the reason that launch of its invasion of Ukraine on Feb. 24, in response to a list compiled by Yale College of Administration.

For some manufacturers, nonetheless, a clear break is less complicated mentioned than completed.

Quick meals giants Burger King and Subway, British retailer Marks & Spencer and resort chains Accor and Marriott are amongst a variety of firms restricted from withdrawing amid sophisticated franchise agreements.

“Not like a company-owned operation, a franchise firm going into a world market makes a binding, long-term contractual dedication to a complicated counter-party, usually a franchisee or licensee,” Dean Fournaris, associate in Wiggin and Dana’s franchise and distribution apply, instructed CNBC.

Below such contracts, an organization — often known as a franchisor — outsources its model to a counter-party — often known as a franchisee — which then owns and operates the model in a selected location. Firms seeking to increase their footprint in a specific market can discover such agreements make sense from an operational or monetary perspective. However, as legally binding contracts, as soon as signed, they’ll go away little room for maneuver.

That has sophisticated some Western manufacturers’ efforts to step again from Russia — at the same time as many friends have paused operations or exited the market fully over their rejection of Moscow’s invasion and logistical challenges which have arisen because of this.

“Manufacturers with solely company-owned operations are higher positioned to close down places rapidly as a result of they don’t have to cope with the layer of the franchise relationship,” Earsa Jackson, a member of Clark Hill’s franchise and licensing group, mentioned.

Burger King, which is owned by Restaurant Brands International, introduced last week it had halted company assist for its 800-plus franchised eating places in Russia and that it might refuse approvals for any enlargement. Nonetheless, the shops stay in operation beneath a neighborhood grasp franchisee.

Subway, equally, has no company shops in Russia however its roughly 450 independently-owned franchised eating places proceed to function within the nation. That as opponents like McDonald’s, which owns nearly all of its eating places in Russia, mentioned it might temporarily close 850 of its restaurants within the nation, at an estimated lack of $50 million per 30 days.

“We do not instantly management these unbiased franchisees and their eating places, and have restricted perception into their day-to-day operations,” Subway said in a statement.

Retailer Marks & Spencer, in the meantime, which has 48 shops in Russia, instructed CNBC it has ceased supplying merchandise to its franchisor, Turkish firm FiBA, however the two stay “in discussions” concerning the model’s continued operations there.

Resort chains Accor and Marriott have additionally each suspended the opening of latest places in Russia however their current places stay in operation by third events.