Franchise Lawyers in Germany

Full-Service Legal Support for Franchises in Germany

Comprehensive Legal Guidance: All from One Source

At Schlun & Elseven Rechtsanwälte, our full-service approach ensures that our corporate clients receive all the legal guidance they need from one source. We advise across all areas of German corporate law, and in matters concerning franchises in Germany, this broad approach is crucial to success. Franchises in Germany need to be aware of aspects of German (and European) competition law, German commercial law, intellectual property and copyright regulation and contract law among others. Our legal services cover these areas and more, meaning that you can rest assured that your business will be completely legally compliant.

Additionally, our lawyers provide industry-specific legal counsel for our clients across many industries. Being able to benefit from comprehensive legal assistance and insightful industry-specific recommendations from one service is a winning combination. Full-service support from Schlun & Elseven Rechtsanwälte really does mean full service.

The Franchise Agreement: Legal Support

When starting a franchise business in Germany, it is vital to have legal support and advice when drafting franchising agreements. The franchise contract, agreed between the two parties, forms the legal basis of the franchise and defines each party’s rights and obligations. The contract is a continuing obligation (§ 314 BGB), which creates a permanent contractual relationship with ongoing obligations that arise between the parties. Franchisors need to ensure that these franchising agreements protect them, their business model and their intellectual property.

Allow our experts in German contract law to oversee your contracts and franchise agreements. Our lawyers will closely analyse the contract’s terms and conditions, and ensure that they follow the requirements of German law. As complex bilateral agreements, franchise agreements concern matters of copyright and trademarks, product distribution and matters concerning commercial agents. There can also be industry-specific requirements that need to be included in such arrangements. Expert legal guidance and oversight from the start is the best means of drafting appropriate franchise agreements which prevent disputes and unnecessary ambiguity in the future.

Running a Franchise Business in Germany

Once the franchise agreement has been drafted and approved, the running of the business comes to the forefront. Our lawyers will advise you on company formation requirements in Germany. As an independent entrepreneur, the franchisee makes the decision as to the legal form of the business. However, the franchise agreement may have clauses which determine the form of the business which should be established. Franchisees regularly need advice and support on the balance of operating their business based on the franchisor’s intellectual property and business model. As experienced German franchise lawyers, our team is perfectly placed to provide you with advice on not only the legal requirements of such an enterprise but also on how best to approach this delicate balance.

For franchisors, our advisors will analyse your proposed franchise system and will support you in the development of the franchise structure. Although your business as a standalone enterprise may have been successful, adjustments may need to be considered to ensure that franchisees can easily adopt the structure. The preparation of a franchise manual which franchisees can adopt is one way to ensure that the model is followed closely.

Disputes in Franchise Arrangements: German Franchise Lawyer

Franchise arrangements can be complex to negotiate, as miscommunication, failure to deliver on contractually agreed positions and unilateral decisions can lead to disputes. Whether you are the franchisor or the franchisee it is important to consult with professional legal counsel before taking actions which could lead to a damaging outcome. In the franchise system, the franchisor makes most of the decisions concerning the brand itself and may be tempted to make big decisions for the individual franchisee. However, the individual franchisee may have greater insight into their local area, and may have their own views on how to increase their market share and grow their unit. Having clear division of responsibilities outlined in the franchise agreement is vital to prevent confusion and disputes in such matters.

However the dispute comes about, our lawyers will support your business and provide you with the legal advice and support that you need. Should the case reach the courtroom, our German franchise lawyers will represent your interests.