Lithuania is located in Eastern Europe, bordering the Baltic Sea and situated between Latvia and Russia. It has an area of 65,200 square kilometres and its capital city is Vilnius.

Lithuania had a population of 3,607,899 in July 2004 with an estimated growth rate of –0,33%. Lithuanian is the national language, however, both Polish and Russian are also spoken. The main religion in Lithuania is Roman Catholic.

Lithuania’s climate is transitional, between maritime and continental with wet and moderate winters. The terrain consists of lowland with many scattered small lakes and fertile soil. Natural resources are peat, gravel, dolomite, amber and mineral water.

Lithuania gained independence from the Soviet Union on 6 September 1991. It is a parliamentary democracy with strong presidential elements. The constitution was approved by referendum on 25 October 1992. It contains provisions on the separation of powers between the executive, the legislative and the judicial branches as well as a catalogue of human rights. The Parliament comprises a single chamber with 71 members directly elected by popular vote and 70 elected by proportional representation.

Since 2000, Lithuania’s economy has been growing steadily. Industrial production includes machinery, textiles, food processing and electronic components. Agricultural produce includes grain, potatoes, sugar beets, flax, vegetables as well as beef, milk, eggs and fish. The labour force consists of 30% in industry, 20% in agriculture and 50% in services. The currency of Lithuania is the litas.

Chapter XXXVII of the new Lithuanian Civil Code is devoted to franchising.