Franchise

Over recent decades, franchising has experienced rapid growth in Denmark, especially during the last couple of years as a result of foreign franchise systems being established in Denmark as well as Danish companies expanding through the use of franchise systems. During the last couple of years, major fran-chise brands such as Starbucks Coffee, Carl's Jr. Restaurants, Dunkin' Donuts, Pizza Hut, TGI Fridays, Pret A Manger and KellyDeli (Sushi Daily) have set up franchises in Denmark.

Danish law contains no express provisions applying to franchising. Consequentially, all aspects of franchising are regulated by the general rules of law. The Danish Contracts Act and the general principles of contract law apply to franchise agreements. The overall principle in Danish contract law is the principle of freedom of contract (meaning that the parties are free to decide the contents of their agreement).

However, the drafting (or implementation) of a franchise agreement may be regulated by various mandatory Danish rules. In particular, certain statutory rules such as the Danish Competition Act, the Danish Marketing Practices Act, the Danish Business Lease Act, the Danish Product Liability Act, the Danish Sales of Goods Act, the Danish Data Protection Act and the Danish Interest on Overdue Payments Act may restrict the parties' room for manoeuvre. There are therefore many mandatory rules to be aware of when negotiating and drafting a franchise agreement.

Franchising is one of Plesner's key focus areas, and Plesner has considerable experience with the drafting and negotiating of franchise agreements, Danish and EU competition law related to franchising and setting up franchise systems in Denmark.

The head of our franchise practice group, Partner Jacob Ørskov Rasmussen, has contributed to a number of international publications on franchising, including Getting the Deal Through - Franchise 2015 and "The Franchise Law Review, Edition 1-5.

Franchise Law Review

Jacob Ørskov Rasmussen has been designated as country expert regarding franchising in Denmark by the International Distribution Institute (idiproject.com), and Jacob Ørskov Rasmussen is also a member of ABA's (American Bar Association) Forum on Franchising.

WHO'S WHO LEGAL Franchise has in 2017 and 2018 listed Jacob Ørskov Rasmussen as a "Leading Franchise Lawyer".

Highlights

Plesner has amongst others been involved in franchise matters concerning the following brands: Starbucks Coffee, Carl's Jr., KellyDeli (Sushi Daily), Pandora, Pret A Manger, Joe & the Juice, Flying Tiger Copenhagen, Skousen, Gorms Pizza and Gucci.

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