Franchising in germany Facts and Figures • pre-contractual disclosure obligations • proper instruction on the right of revocation Franchising in Germany represents a dynamic • scope of territorial protection business sector with consistent growthrates, • proper incorporation of the franchise manual totaling sales of EUR 62.8 billion in 2013. Close to • compliance with statutory provisions related to 1000 franchise systems with 76,500 franchisees standard terms employ more than 525,000 employees in the • price recommendations vs. binding sales prices sectors services (45 %), retail (25 %), hotel/ • non-compete provisions (including post-con- restaurants (18.3 %), and craft (11.7 %). tractual obligations) • exclusive purchase requirements And there is potential for more: • obligation to pay statutory pension contributions Germany is the largest European country in • compensation claims in analogy to commercial terms of population, the strongest economy in Europe and the fourth-largest by nominal GDP in the world. Demographic change (more than 40 % of the German population are 50 years or older) agency law • obligation on franchisors to pass on rebates and discounts to franchisees • prerequisites for termination for cause. results in an increasing demand for services and products in the health, senior care, wellness, leisure industries and others. Your Focus is Our Focus Expanding internationally means adapting to Legal Environment the local markets while safeguarding the core elements which make your system unique and There is no statutory franchise law in Germany. successful in your home market. We assist inter- Legal standards are primarily based on a mosaic national franchisors in managing of court decisions supplemented by fragmented statutory provisions pertaining to civil law, • the adaptation of existing legal documentation competition and antitrust law (including EU- to the requirements of German franchise regulations), commercial law, company law, standards (or, if preferred, we draft the license and intellectual property law, and others. relevant documentation in accordance with Key aspects of relevant case law relate to German law) www.buse.de · Berlin · Dusseldorf · Essen · Frankfurt am Main · Hamburg · Munich www.buseinternational.com · Brussels · London · Milan · New York · Palma de Mallorca · Paris · Sydney · Zurich 1 • the application for protection of trademarks and know-how health. And more importantly: we know that our clients want to do business without having • compliance with statutory provisions (e.g. with to become lawyers. So we use our expertise to respect to labor law, consumer protection help you concentrate on what you want to do laws, food regulations, import restrictions, and in the first place: successfully expand your many others) business in Germany. • marketing and advertising campaigns in order to be in line with regulatory restrictions • implementation of amendments to franchise Your Value agreements • disputes with competitors and/or franchisees (in and out of court). Providing legal advice and services to franchisors is a people business. Your franchise team at Buse Heberer Fromm has the in-depth industry experience and the commitment to ensure that Our Commitment you get the service you need, and that you will get it from our best. Our approach is simple and straightforward: we provide comprehensive, professional and The Client Service Partner identifies the scope practical advice to franchisors. We are familiar of legal support required by you and will involve with the legal aspects specific to franchise the respective subject matter experts of our operations and their application in practice. firm. Throughout the entire project, your Client Well-established distribution organizations Service Partner will remain your primary contact, and franchisors from Europe, the US and other ensuring smooth interdisciplinary and cross- regions of the world rely on our legal expertise. border networking while efficiently managing Start-up enterprises with innovative projects your overall project cost. With more than 100 and an eye for upcoming trends benefit from specialized attorneys in 6 offices in Germany we our in-depth industry insights. Our clients advise you on all aspects of commercial and tax appreciate our comprehensive understanding law. Through our international offices and our of their industry sector, as we practice in core extended network of international experts we industries such as food & beverages, services, efficiently steer your project should you wish to retail, internet platforms, fashion, wellness/ franchise your system Europe-wide. Contact your Client Service Partners of our franchise team: Dr. Dagmar Waldzus, LL.M. Jasper Hagenberg, LL.M. (NYU) (Cardozo) Franchising, Antitrust and Intellectual Property and Distribution Law Competition Law Harvestehuder Weg 23 Kurfürstendamm 237 D-20149 Hamburg D-10719 Berlin waldzus@buse.de hagenberg@buse.de P: +49 40 41999–0 P: +49 30 327942-0 F: +49 40 41999–269 F: +49 30 327942-22 www.buse.de · Berlin · Dusseldorf · Essen · Frankfurt am Main · Hamburg · Munich www.buseinternational.com · Brussels · London · Milan · New York · Palma de Mallorca · Paris · Sydney · Zurich 2