DENMARK Trends and Developments Contributed by: Dan Bjerg Geary, Rasmus Otterstrøm Helleland Boisen and Laura Sloth Olesen, Bech-Bruun
ing those with disabilities. This legislation, implement - ing the EU Directive on accessibility requirements for products and services, mandates that certain prod - ucts and services must be made accessible to per - sons with disabilities. For franchises operating in Denmark, the Accessibility Act necessitates a review and potential overhaul of their service delivery models – primarily web shops and smartphone apps offering e-commerce services (the option to purchase services/goods) – to ensure compliance with the Accessibility Act from 28 June 2025. Also, payment terminals and self-service termi - nals delivering services covered by the Accessibility Act must meet the requirements set out in the Acces - sibility Act if the terminals are placed on the market after 28 June 2025. The implementation of the Accessibility Act in Den - mark presents both challenges and opportunities for franchises. By embracing these changes, franchises can enhance their inclusivity, improve customer satis - faction, and align with broader societal goals of equal - ity and accessibility. Upcoming EU Regulation on Payment Terms in Commercial Transactions In April 2024, the European Parliament approved the European Commission’s proposal for new EU regula - tion on combating late payment in commercial trans - actions. There is currently no set date for when the regulation may be expected to enter into force, as it is awaiting the European Council’s first reading. The regulation is designed to protect debtors in commercial transactions between businesses and is expected to set maximum payment deadlines, automatic and mandatory interest on late payments, and enforcement measures. The maximum payment deadline is expected to be 30 days from the date the debtor receives an invoice, but may be increased by agreement to 60 days for all types of goods and to 120 days for slow-moving goods and seasonal goods.
Franchise agreements must be carefully examined to ensure compliance with this expected new regulation. The regulation’s strict payment deadlines and man - datory interest on late payments could significantly impact the financial arrangements within franchise agreements. Franchisors and franchisees should review their con - tracts to ensure that they align with the regulation’s requirements – which cannot be deviated from, as the regulation currently entails sanctions for violations. It is also important to be aware of the right to claim inter - est and compensation for late payments. The regulation is expected to apply to contracts entered into before the regulation’s effective date if the transactions under the contracts are executed after such date. For long-term contracts – such as franchise agreements still in effect when the regula - tion enters into force – it is crucial to assess how the new rules will affect credit periods, prices, etc. There may also be a need to renegotiate existing contracts, especially if they are based on longer credit periods. Conclusion Franchising in Denmark is a popular business model due to Danish consumers’ preference for established brands, driven by a cultural emphasis on quality, trust and reliability. The franchise model offers benefits such as brand recognition, a proven business frame - work, economies of scale and risk mitigation, making it viable for new entrepreneurs and established busi - nesses seeking expansion. Financially, franchising in Denmark provides advantages through established financing structures and the concept of a floating charge, enhancing stability and growth potential. The lack of specific franchise legislation in Denmark allows for flexibility in negotiations and franchise agreements, although other Danish legislation does have an impact on franchises.
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