Foreign investors interested in the business environment available in Switzerland
are advised to become familiar with the legal system applicable here, but also on the specifics of the market – purchase behavior of the market, patterns or main interests. One of the way in which a business can be set up in Switzerland
is related to franchising
, which provides to the entrepreneur a rather safe investment. Franchising agreements
are signed in order to further represent the business of another investor; the investment has many advantages and one of the most important aspects is that the business will benefit from a solid business plan, which has proven to be effective; our team of Swiss lawyers
can offer an in-depth presentation on the advantages of a franchise agreement
Legislative framework for Swiss franchise agreements
When opening a company
established as a franchising business
it is important to know that the Swiss law
does not prescribe a specific legislation regulating the industry. Still, the industry – which has a major impact on the local economy, should follow the rules and regulations of the General Provisions of the Swiss Civil Code
, alongside with the Swiss Unfair Competition Act, the Swiss Trademark Act and the Swiss Cartel Act.
are recommended to small and medium sized companies
, which can benefit from the advantages of a liberal system in this sense; our attorneys
can provide more details in this sense.
Swiss franchise agreements – main provisions
According to the legal decision of the Federal Supreme Court of Switzerland, a franchising agreement, although it does not possess a clear legal definition, should contain the following minimum requirements:
• the local or foreign franchisee (the person representing a well-known company) runs the business as his or her own risk;
• the franchisee is obliged to implement the business plan of the franchisor (the person offering the right to represent his or her business) in respect to sales policies or marketing;
• the franchisee must receive assistance and training from the franchisor;
Persons who need further information on the franchising agreements
available in Switzerland
can address to Swiss law firm
for consultation on this matter.