Franchise Agreements in Norway

Franchise Agreements in Norway

Updated on Wednesday 03rd May 2017

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Businessmen who want to establish a company in Norway can set up a franchise, a business that can be applied in almost any sector. Franchising can be described as a "hybrid" form of business because it implies working for somebody else (a corporation) and working for yourself (sole proprietorship). Two levels of people are involved in a franchise agreement: the franchisor, who borrows his trademark or the name of his business and the franchisee, which pays a royalty and an initial fee for the right to use the franchisor`s name. Franchise agreements in Norway are regulated by a number of requirements and stipulations. Our team of attorneys in Norway can provide an extensive presentation of this type of agreement.

Overview of the franchising system in Norway

The Norwegian franchising system is based on concepts developed in Norway. 75% of all franchises operating in this country have Norwegian origin. Franchise agreements are set up in accordance with the Norwegian legal framework for business enterprises and the EEA requirements. The Ministry of Trade and Industry regulates the franchising activities; an exemption from competition act is stipulated for franchising in Norway (directive 4087/88).
Franchise agreements contain details on both distribution and licensing. Our law firm in Norway can present you the different types of franchise agreements in Norway that entail different provisions under competition law: 
  • Distribution and service;
  • Production/industrial franchise.
For an in depth presentation of the Norwegian legal framework regarding franchise agreements please rely on our Norwegian lawyers.

Franchising industry in Norway

In Norway, the franchise model became increasingly attractive for local and foreign investors. The main business sectors where franchising agreements have been established are: 
  • Property and real estate;
  • Travel and leisure;
  • Retail;
  • Food and restaurants;
  • Health care and home services.
Growing franchise sectors in Norway include: personal services, business to business, hotels and automotive. The Norwegian economy receives 21 billion dollars contribution from the franchising industry.
If you are looking for closing a franchise agreement in Norway you should know that our Norwegian lawyers can assist you in concluding such a contract. Feel free to contact our attorneys in Norway who can help you draft the franchise agreement and guide you through the entire process of becoming a franchisee.