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Open a Franchise Business in Slovenia

Open a Franchise Business in Slovenia

The franchise companies that are registered in Slovenia have to conduct their activities through a franchising agreement. The legislation in Slovenia does not specifically regulate the franchising industry, but the franchise agremeent should follow the provisions of certain rules of law, such as the Code of Obligations, which became applicable starting with January 2002. Our team of lawyers in Slovenia can advise on the main legal aspects that are included in the Code of Obligations that concern the registration of a franchise business

Rules of law for Slovenian franchising businesses 

As mentioned above, companies registered in Slovenia that need to operate on the local market through a franchising business have to respect the provisions of the Code of Obligations. The franchise agremeent is a legal document that has to be concluded in writting by the main parties involved in the franchise business (the franchisor – the legal entity that grants the right to intellectual property and know-how to the other party, and the franchisee, the person or the business form that has received such rights). 

An important aspect concerning contracts signed in Slovenia refer to the language in which such agreements are concluded. It is compulsory to draft contracts which are written in Slovenian, and in the case of foreign companies, other languages are accepted, as long as the contract offers a translation into the local languageOur team of Slovenian lawyers can provide more details on the main provisions that must be included in this type of contract

The franchising companies are also required to follow the regulations deriving from the following legal acts:

Prevention of the Restriction Of Competition Act;

The Protection of Competition Act

Local companies can also benefit from the assistance of the Slovenian Franchising Association, which has adopted the European Code of Ethics in Business Franchising

Distribution through Slovenian franchising businesses  

As a member state of the European Union, Slovenia is required to introduce in its national legislation the directives established by the Community. Franchising businesses can also conduct their business operations in the online environment, following the franchisor’s requirements.

It is important to know that the franchisor can impose to the franchisee a minimum value on the annual sales, but this is applicable only in the case of traditional businesses (brick-and-mortar shops) and investors can contact our law firm in Slovenia for further information on this matter.