Franchise Agreements in Switzerland

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. 

 

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. 

 

The following video offers a short presentation on the Swiss franchise agreements: 

 

 

Franchising businesses 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. 

 

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;

• the franchisee will use the intellectual property rights in accordance with the franchisor’s wishes.

 

Persons who need further information on the franchising agreements available in Switzerland can address to Swiss law firm for consultation on this matter.