Franchising in Denmark
Economy
Denmark has the 29th largest economy in the world by GDP: $343
billion in 2008 (International Monetary Fund).
The Economist estimates that Denmark had GDP per head of US$
36,418 in 2008 (Source: Economist Intelligence Unit).
Legislation
There is no specific franchise law in Denmark. Therefore
general contract law rules will apply.
Franchise Market
It is estimated that there are around 125 active franchise
systems in Denmark with about 20 emanating from outside of
Denmark. There are around 1,000 franchise outlets in Denmark.
(World Franchise Council).
The top franchises in Denmark include Bang & Olufsen and
B-Young.
Franchise Legislation
Denmark is a civil law country.
- there is no specific legislation on franchising. General
contract law considerations will be applicable to franchising
- there is no franchise disclosure law in
Denmark
- there is no franchise registration in
Denmark
There is no franchising specific employment law in
Denmark. However, franchisees could be treated as the
franchisor’s employees for the purposes of taxation of the
franchisee is not a company or judicial person. In such
circumstances the franchisor could find itself liable for tax and
national insurance contributions.
Conclusion
A careful review of legal documentation is essential before
franchises are sold in Denmark. A good understanding of the
local market and business practice is key to local success.
For more information please contact Babette
Marzheuser-Wood.