DENMARK Law and Practice Contributed by: Dan Bjerg Geary, Rasmus Otterstrøm Helleland Boisen and Laura Sloth Olesen, Bech-Bruun
Bech-Bruun Gdanskgade 18 2150 Copenhagen Denmark Tel: +45 7227 0000
Email: info@bechbruun.com Web: www.bechbruun.com/en
1. An Introduction to Franchising 1.1 Franchise Market Overview The Danish franchise market is a dynamic sector that has experienced significant growth in recent years. It forms a particularly important part of the retail and service industries in Denmark. Market Size Franchising in Denmark covers a wide range of indus - tries, including restaurants, retail and services. Though the exact number of franchise businesses varies, fran - chising is a widespread business model in Denmark, and it significantly contributes to the Danish economy by creating jobs and stimulating entrepreneurship. The Danish franchise market is characterised by a mix of strong international brands and innovative national concepts, together creating a varied and competitive market. International Brands Several international franchise brands have estab - lished a strong presence in Denmark. Some of the most well-known include: • McDonald’s – one of the largest fast-food chains in the world, with a significant presence in Denmark; • Burger King – a competitor of McDonald’s, also with many restaurants in Denmark; • 7-Eleven – a widespread and popular convenience store chain in larger cities and at a large number of Danish railway stations; • Starbucks – the world’s largest coffee chain, with many coffee shops in Denmark; and
• Carl’s Jr – an American fast-food chain with multi - ple restaurants in Denmark. Domestic Brands Several Danish franchise businesses have also been successful both nationally and internationally – eg: • Joe & the Juice – a Danish chain offering juice, cof - fee and sandwiches, which has expanded interna - tionally (most recently in the Middle East); • Søstrene Grene – a Danish retailer of a wide range of products in home decorations, creativity and accessories, which has mainly expanded in Europe; • Flying Tiger Copenhagen – a Danish retailer of everyday items and seasonal goods, which has expanded internationally; • Sunset Boulevard – a Danish fast-food chain focusing on quality burgers and sandwiches, mainly present in the Danish market; and • Kvik – a Danish retailer of kitchens, wardrobes and bathroom fittings, which has expanded internation - ally. 1.2 Franchise Regulation In Denmark, franchising is not governed by specific franchise laws but rather by the Danish Contracts Act and general Danish contract law principles – most notably, the principle of freedom of contract. Franchising must also adhere to a variety of special legislation. This includes but is not limited to: • the Marketing Practices Act; • the Competition Act; • the Business Lease Act;
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