Discusses opportunities for U.S. franchisers and legal requirements in the market.
Last Published: 2/4/2019

  • Although franchising is not as widespread as in the United States, it is a well-known form of business, and more Danes are becoming interested in investing in franchising businesses.  However, the bulk of franchise-operated businesses are still of Danish or Scandinavian origin.  American franchising companies also operate in Denmark.  The longest established are McDonalds, KFC, and 7-Eleven.  Franchising is also common outside the quick-service food trade.  Shoe-repair services, convenience stores, car rental, health clubs, and indoor tanning salons are examples.  There is no specific franchising legislation in Denmark.  Franchising is subject to the legal framework governing all business enterprises.  U.S. companies are therefore strongly advised to consult a Danish attorney and the Danish Franchising Association before entering into any form of franchising agreement with a local company or individual.  The Danish Franchising Association was established in 1984 and is a member of the International Franchising Association headquartered in the United States. 

  • U.S. businesses looking to franchise within the European Union will likely find that the market is quite robust and friendly to franchise systems in general. There are a number of laws that govern the operation of franchises within the EU, but these laws are fairly broad and generally do not constrain the competitive position of U.S. businesses.  The potential franchiser should take care to look not only at the EU regulations, but also at the local laws concerning franchising.  More information on specific legislation can be found on the website of the European Franchise Federation.

 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.