Discusses opportunities for U.S. franchisers and legal requirements in the market
Last Published: 7/22/2019

There are a number of U.S. franchise chains active in Norway, such as McDonalds, Avis, and Starbucks.  However, most franchising systems operating in Norway are based on concepts developed in Norway.  All franchise systems in Norway are required to act in accordance with the Norwegian legal framework for business enterprises.  They also have to operate in line with the framework of the EEA, which is harmonized with EU legislation.  Franchising is exempt from the Competition Act through EU directive 4087/88.  In Norway, franchising is regulated by the Ministry of Trade and Industry.  There are no major obstacles for starting a franchise chain in the country.

There are some challenges in establishing a franchise concept in Norway.  Public knowledge about franchising is relatively limited, though there have been attempts to establish franchise conferences in Norway to better educate the public and potential franchisees.  There are very few central marketplaces for potential franchisees to meet, so most of the business opportunities are presented through newspaper and magazine advertisements, the Internet, or facilitated meetings.  Norway has a limited market size with 5.3 million people distributed over a large geographical area, often forcing franchise concepts to be broader than what is typically the case in the United States.  Franchise systems in Norway also face high costs, for example for labor and property rental, and a tight labor market.  It has been relatively difficult for potential franchisers to find financing in Norway.

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: http://www.eff-franchise.com/
 

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.