DENMARK Trends and Developments Contributed by: Dan Bjerg Geary, Rasmus Otterstrøm Helleland Boisen and Laura Sloth Olesen, Bech-Bruun
Owing to the absence of specific franchise legislation, there are no statutory requirements for pre-contrac - tual disclosure in Denmark as may be mandatory in various other jurisdictions. This allows the parties to streamline the negotiation process without the need to provide extensive information upfront. Additionally, there are no requirements for translations, apostille or notarisation of signatures, or registration of signed franchise agreements. In addition, there is no require - ment for a “cooling off” period between contract negotiation and signing. This lack of formalities simplifies the process of con - cluding a binding and enforceable contract, making it smoother and easier for parties to enter into franchise agreements in Denmark, compared to other jurisdic - tions where such requirements can be burdensome and time-consuming. Despite the ease of entering into franchise agree - ments, the parties must exercise due diligence and ensure that their agreements comply with general Danish contract law principles. Furthermore, while the legal process is straightforward, the parties should be mindful of other relevant Danish legislation that may impact their franchise operations, such as competition law, consumer protection regulations, data protection regulations and employment law. Overall, the flexibility afforded by the Danish legal system provides a conducive environment for fran - chising, allowing businesses to focus on growth and expansion without being encumbered by excessive legal formalities. However, it remains essential for the parties to seek legal advice to navigate the complexi - ties of contract law and to ensure that their franchise agreements are adequate, robust and enforceable. Hence, a franchise agreement with unclear wording poses uncertainties with respect to the parties’ legal positions in the case of disputes, termination and the like, and may result in Danish contract law principles having to be used to determine such legal positions. Increasing Legal Complexity for Businesses Even though there is no specific Danish legislation that governs franchising, there is a growing complex - ity of legal requirements in Denmark within various legal fields, which may present significant challenges
for companies not properly suited to navigating such complexity. Franchising emerges as a strategic solu - tion for this, offering substantial economies of scale in areas such as IT infrastructure, compliance and marketing. Franchise networks often benefit from centralised IT set-ups that ensure robust data management and cybersecurity, reducing the burden on individual fran - chisees to purchase or develop and maintain sophisti - cated systems independently. This shared infrastruc - ture not only enhances operational efficiency but also helps ensure compliance with stringent data protec - tion laws. Moreover, the collective approach to compliance within a franchise system provides a significant advantage. Franchisees may rely on the franchisor’s expertise and resources to meet evolving regulatory demands, from employment laws to environmental standards. This support mitigates the risk of non- compliance and allows franchisees to focus on their core business activities. In the realm of marketing, franchising offers a uni - fied strategy that leverages brand recognition and established market presence. Franchisees benefit from co-ordinated marketing efforts that adhere to legal advertising standards, ensuring consistency and compliance across all platforms. Alternatively, an international franchisor may rely on the franchisee ensuring compliance with local marketing laws for local campaigns, should the franchisor not be familiar with national requirements. Overall, the franchise model provides a robust frame - work for addressing the increasing legal complexities. By capitalising on economies of scale in IT, compli - ance and marketing, franchisees can achieve opera - tional excellence and maintain a competitive edge in a challenging regulatory environment. Implementation of the Accessibility Act in Denmark The Danish Act on Accessibility Requirements for Products and Services (the “Accessibility Act”) applies to certain products and services from 28 June 2025, and represents a significant step towards equal access to certain products and services for all citizens, includ -
63 CHAMBERS.COM
Powered by FlippingBook