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Open a Franchise Business in Czech Republic

Open a Franchise Business in Czech Republic

With a constant annual growth, low tax rates for businesses, a stable and respected economy, the Czech Republic has its doors open for investors who want to settle their activities whether through a brand-new company or a franchise. Importing foreign concepts represents in many cases the proper ways of doing business in a stable and respected environment. One should understand from the beginning the legal aspects linked to the company incorporation in the country, a field where our lawyers in the Czech Republic can offer comprehensive support and advice.

How you can establish your franchise in Croatia

Even if franchises are usually subject to higher costs compared to other types of companies, this kind of business proves successful regardless of the chosen area of activity. The foreign concepts can suitably enter the business environment in Czech Republic, but so does the local ones which can be settled as franchises in the country. In other words, a foreign entrepreneur who wants to establish his/her operations in the Czech Republic can choose whether local or a foreign company through which he/she can register the franchise. One should know that there are no restrictions imposed for foreign franchisors who want to enter the Czech market, and there is no specific legislation in this matter, only the Civil Law which concerns any type of business in the country. Sectors like gambling, defence or communication might be subject to varied rules. More information about how you can set up a franchise can be offered by our Czech attorneys.

The agreement of a franchise in the Czech Republic

According to the Civil Code in Czech Republic, the franchise contract is an innominate covenant which comprises the same details as for any type of sale contract, the licensing agreement and the lease contract. Cross-border franchising business in Czech Republic is also overseen by the European Code of Ethics for Franchising. One should bear in mind that any franchising agreement must contain a pre-contractual liability which refers to the parties involved that must consider the legal and the factual circumstances for which they need to be liable for any damage that might occur.

If you want details about how you can set up a franchise in Czech Republic, please feel free to get in touch with our law firm in Czech Republic who can explain the legal terms of the business.