Set Up a Franchise Business in Austria

Until a few years ago, franchises weren’t very popular in Austria. However, the large number of local brands seeking to expand has made it possible for businessmen to consider grating the rights to use the name of the company to other enterprisers interested in setting up an Austrian company based on an existing and successful business model.

Nowadays, both local and foreign entrepreneurs are keen on setting up franchise businesses in Austria, whether local or international ones. Our Austrian company formation agents can offer information on the steps related to creating a franchise business here.

Legislation related to the creation of franchise businesses in Austria

There is no specific law governing the establishment of a franchise business in Austria, however, there are several legal frameworks which cover the registration of a company through which such type of venture can be carried out. These are:

• -          the Company Law;
• -          the Unfair Trade Practices Law;
• -          the Anti-trust Act;
• -          the Consumer Protection Law;
• -          the Commercial Agent Law.

There are also several elements which contribute to the setup of an Austrian franchise business, such as the contract which must contain specific information.

Our company registration advisors in Austria can offer information on the franchise agreement.

Registering an Austrian franchise business

The Austrian franchise is made up the following:

• -          the franchisor, which is the party grating the right over the use of his or her company’s brand;
• -          the franchisee, which is the user of the brand.

The franchisee must first organize a form of doing business in Austria, after which the franchise agreement can be signed. The agreement must contain the following provisions:

• -          the right to use the intellectual property rights over the products or services of the franchisor;
• -          the right of the franchisee to obtain assistance in implanting the know-how of the franchise;
• -          the fee related to using the franchisor’s business model.

Most foreign enterprisers setting up franchises in Austria use the limited liability company as a commercial entity and apply for a trading license.

For assistance in registering a franchise business in Austria, please contact our local company formation consultants.