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Set up a Franchise Business in Czech Republic

Updated on Friday 15th December 2017

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Set-up-a-Franchise-Business-in-Czech-Republic.jpgThe franchising industry in Czech Republic is represented by approximately 250 franchising brands. In the last years, the number of companies which preferred to operate on the local market through a franchising agreement increased at a steadily rate, but the market is  mainly represented by franchising companies registed in Czech Republic (approximately 65% of all franchising businesses). 
 
In order to open a company in Czech Republic as a franchise business, it is necessary to sign a franchising agreement from one of the several types of contracts that are available for this sector. Our team of agents in company formation in Czech Republic can advise on the provisions of the franchise agremeents and can assist investors in choosing a suitable contract
 

Franchising in Czech Republic 

 
As mentioned above, the franchising market in Czech Republic accounts for approximately 250 franchising brands (260, at the level of 2015), marking an increase compared to 2013, when there were only 219. Out of these, international companies were represented by 110 brands, while Czech companies accounted for 150 brands. Together, they accounted for 5,500 franchisees (in 2015), while in 2013, there were only 4,966 franchisees on the local market. 
 
The best business prospects for franchising businesses are established in numerous economic sectors. Investors interested in starting the procedure of company registration in Czech Republic through a franchise agreement may invest in one of the top sectors, suitable for the franchising businesses:
 
wellness and fitness centers;
education and training;
real estate services;
hospitality and tourism sectors;
banking, insurance and financial services;
fashion
 
Our team of specialists can provide in-depth assistance on the main legal ways to start a franchise business in this country through a franchising agreement, which is not regulated under the local legislation. 
 

Franchise agreement in Czech Republic

 
Under the Section 1746 (2) of the Civil Code in Czech Republic, a franchise agreement is seen as a “unspecified type of contract”, in the sense that it should contain provisions which are customarily imposed on other types of contracts, such as the license agreement, transfer of know-how agreement  and others. 
 
As a general rule, local companies establish as a franchise business through direct franchising or master franchising agreements, while in the case of international companies, the latter and the joint venture franchising are preferred. Investors can contact our team of consultants in company formation in Czech Republic for in-depth assistance on the above mentioned franchising methods
 

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