Franchising is a common way to open a business in Poland, with notable opportunities in the food sector but also in other business areas. The relationship between the franchisor and the franchisee is outlined in a special franchising agreement signed before the commencement of the business.
When entering into franchise agreements in Poland, investors are advised to seek proper counseling and to perform a due diligence on the company selling the franchise. Our team of attorneys in Poland can help you with legal counseling on this matter.
Franchise businesses in Poland
A franchise in Poland is based on a business model in which a franchisor (a company that wishes to expand) offers its business model to a franchisee (a buyer who wishes to open a business). The business model is a safe one and offers advantages for both parties.
Apart from the legal principles that will govern the franchise agreement, investors in Poland should also be aware of the taxation principles that apply in case of franchises and the special permits and licenses that may be needed for some business activities, such as those in the food and hospitality sector.
Drawing up and signing the franchise agreement
Franchising is not expressly regulated by a dedicated Polish law. This also applies to the franchise agreements which concluded only under the provision of the general Contract Law. Therefore, this type of agreement is concluded under the general principle of contractual freedom and the parties are allowed to negotiate the format of the contract.
The two parties that enter into a franchise contract in Poland do so according to the principle of good faith. In general, the contract will be governed by the principles of the Polish Civil Code. There is no need for pre-contractual disclosures, however, the final document will include provisions for good faith, for the disclosure of trade secrets and know-how as well as for the delivery of the proposed business model by the franchisor.
Examples of laws that may govern franchise agreements in Poland include the Employment Law, the Consumer Protection Law and the Competition Law.
Our team of lawyers in Poland can give you specific information on any of these laws and how they apply to your business.
Contact our law firm in Poland for more information about issues concerning agreements in the country, such as contractual liability and dispute resolution.