DENMARK Law and Practice Contributed by: Dan Bjerg Geary, Rasmus Otterstrøm Helleland Boisen and Laura Sloth Olesen, Bech-Bruun
4. Other Requirements 4.1 Past-Profitability Requirements
position they would have been in had the agreement not been made (reliance damages). 2.3 Franchise Disclosure Exemptions As mentioned in 2.2 Consequences of a Failure to Disclose , there is no disclosure obligation under Dan - ish law. 2.4 Franchise Disclosure Language/ Translation Requirements Danish law does not require pre-contractual disclosure and therefore does not require disclosure documents. If the franchisor decides to provide disclosure docu - ments, they are free to determine the language of the disclosure documents, and there is no legal require - ment for the documents to be translated into Danish. Danish and English are widely used as contracting languages for franchise agreements in Denmark. There is no franchise registration law in Denmark, and there are no required or mandatory franchise registra - tions before a franchisor can operate. There are also no requirements that franchise agreements be regis - tered with Danish authorities. Under Danish law, professional parties entering into agreements are generally not bound by any stringent formal requirements. This means that the formation of contracts does not necessitate adherence to specific formalities or procedures, allowing for a more flex - ible approach to the creation of legally binding agree - ments. Hence, a franchise agreement does not require registration with Danish authorities to be considered valid and enforceable. 3.2 Franchise Registration Process There are no registration requirements for franchise agreements under Danish law. 3. Franchise Registration 3.1 Mandatory Registration 3.3 Consequences of a Failure to Register There are no registration requirements for franchise agreements under Danish law.
There are no legal requirements stipulating that the franchisor demonstrate that the business concept has operated profitably for a period of time before entering into a franchise agreement. Under Danish law, there are generally no requirements that must be met before a company can enter into a franchise agreement. 5. Duration, Renewal and Termination 5.1 Duration of a Franchise Agreement Under Danish law, there are no legal or regulatory requirements regarding the minimum or maximum duration of a franchise agreement. Franchise agreements are governed by the contrac - tual principle of freedom of contract. This means that the parties have the autonomy to determine the content of the agreement with generally few restric - tions on its terms. Consequently, the parties are free to agree on the duration of the franchise agreement. However, if the franchise agreement contains a non- compete obligation, the parties should be aware of the restrictions on the duration of such non-compete obligation according to competition law (see 6.2 Exclusive Territories and Competing Businesses for further information). This implies that a duration of five years is typical for franchise agreements in Denmark. Although there are no statutory requirements regard - ing the duration of a franchise agreement, practical considerations such as the size of the investment, repayment periods and market conditions may influ - ence the determination of the agreement’s duration. It is also common for franchise agreements to include provisions for extension or termination, which can affect the actual duration of the agreement. 5.2 Franchise Renewal The franchisee does not have a legal or statutory right to renew the franchise agreement upon expiry. A renewal right must be explicitly outlined within the
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