Discusses opportunities for U.S. franchisers and legal requirements in the market.
Last Published: 7/9/2019

Franchises represent only 5% of Austrian retail sales. Approximately 440 franchise systems with over 10,400 locations currently operate in Austria. According to the most recent Austrian Franchise Assocation data (2017), the net turnover for franchises in Austria totalled approximately $9.3 billion, a 7% increase over the previous year.

Around 60% of franchise businesses operating in Austria are of local origin.  The top foreign participants in the Austrian franchising economy are German companies, with around 19% of franchises, followed by the United States and Canada combined with about 16% of franchises, and 5% from the rest of the world .  Most German franchises either set up a headquarters in Austria or franchise directly over the border. Most U.S. franchisers, on the other hand, choose to expand their operations in Austria through a master franchise partner, an approach that is not as well received in the market. 

U.S. businesses pursuing franchise opportunities within the European Union will likely find that the market is quite robust and friendly to franchise systems in general. Many Austrian business and consumer trends begin in Germany; therefore, establishing a U.S. franchise first in Germany before expanding to Austria can be a solid strategy.  EU franchise regulations are fairly broad and can be found at European Franchise Federation website. While there is no specific Austrian franchise law, existing commercial laws can affect franchise business and agreements should detail the rights and obligations of the franchise partners including: contract period, trademark law and competition law, location, marketing strategy and franchise fees. In addition, mandatory legal provisions such as anti-trust law should be considered.    

The Austrian Franchise Association (Österreichischer Franchise-Verband) http://www.franchise.at/ maintains an informative website, and co-organizes seminars as well as an annual trade show: 

Österreichische Franchise-Messe
June 26-27, 2020    www.franchise-messe.at

The European Franchise Federation is the leading advocate for the franchise industry in Europe: http://www.eff-franchise.com/
 

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