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Practices

Franchising in Slovenia

Economy

Slovenia has a prosperous and stable economy with a GDP of EUR 37.126 billion.

Legislation

There are no specific franchise laws in Slovenia.

Franchise Market

Among Slovenia’s top franchisors are McDonald’s, American Express, Diners' Club and "English First" (language courses) with 3000 pupils.

Franchise Legislation

The Slovenian Code of Obligations which came into force in January 2002 does not specifically mention franchising but will apply to franchise agreements.

Although there are no requirements relating to the format of franchise agreements, they are required to be in writing as they amount to “industrial property and know-how”.

The law of public usage on the Slovenian language requires that all conducted business must be in Slovenian language. Where business is conducted with foreign entities, other languages can be used in addition to the Slovenian translation.

There are two domestic competition laws which affect franchising in Slovenia being The Prevention of the Restriction of Competition Act and The Protection of Competition Act.

In addition, The Slovenian Franchising Association adopted the European Code of Ethics in Business Franchising as the Slovenian Franchising Code of Ethics providing useful guidance to the issues of franchising in Slovenia.

Conclusion

It is essential for all legal documentation to be reviewed before franchises are sold in Slovenia.

For more information please contact Shelley Nadler.

 

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