International Franchise Lawyers Association e.V.
 
 
Franchising in the Czech Republic
 
For further details please contact:

CTIBOR, Jirí

Zilvarová Ctibor Hladký
Národní 41

Praha 1

Czech Republic

( +420 225 020 500

Ę +420 225 020 555

jiri.ctibor@z-c-h.cz

www.z-c-h.cz

 

Although franchising is an established system with an appropriate legislature in many countries, the legal system of the Czech Republic is essentially only now beginning to respond. At the moment, franchising is not specifically treated or defined by the Czech law. Concurrently, unlike in Germany or Austria, the relevant court judicature is also missing. Despite the absence of a specific legal regulation in the Czech environment, the timing for franchising is favourable, because the Czech law doesn’t prevent or rule it out. However, the situation calls for more emphasis on contractual documentation, which in the absence of legal regulation protects the interests of the parties, in particular of the weaker of the partners. A current political discourse exists that aims toward regulating franchising within the Czech law. Additional to the definition of franchising, the goal is to also anchor pre-contractual information obligations. This should ensure the provision of relevant information to those interested in franchising and prevent abuse of its reputation.

Due to these suitable conditions and new business opportunities, the Czech Republic is becoming a sought-after place for the expansion of franchised enterprises. This growing interest is also evident from the increasing number of franchising system opportunities in the Czech Republic, particularly compared to other EU countries.

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