Food Franchising in Denmark: Get Your Registrations in Order

When a café, restaurant or food shop becomes a franchise network, the business’s registrations do not automatically extend to the franchise concept. Each new franchisee’s operations must be assessed separately, and your own role may change if you start supplying food to other businesses. Clarifying regulatory requirements should therefore be a standard pre-opening task — not something left until the final few days.

Distinguish between the franchise agreement and food operations

Denmark has no specific franchise law and no dedicated register for franchisors, franchisees or franchise agreements. Franchise agreements are governed by the Danish Contracts Act and general principles of contract law. Section 36 of the Contracts Act may, in particular, be relevant to unfair terms. The Danish Marketing Practices Act and Competition Act also apply where relevant.

However, the absence of a franchise registration requirement does not mean that a new outlet can open without ordinary business registration or the necessary food business registrations. Registration with Denmark’s Central Business Register (CVR), tax and duty matters, and food regulations are separate areas that must each be addressed.

Under the rules governing food businesses, businesses must generally be registered with or approved by the relevant authority. The official guidance on food business approval expressly states that franchise businesses must be approved or registered depending on their activities. What matters is what the business actually does — not whether it trades under a shared name.

Start by identifying the business that will operate each outlet and its specific activities. Do not use an existing shop’s registration as evidence that another independent business is covered.

Map the flow of goods before opening the first new outlet

Draw a simple diagram showing how food moves from supplier to customer. Include any central kitchen, storage facilities, transport and deliveries between outlets. The diagram should show both the physical activities and the businesses carrying them out.

For each business, answer the following questions:

• What foods does it receive, store, prepare and supply?
• Does it sell directly to the final consumer or to other businesses?
• Do its activities take place at one site or across several addresses?
• Who handles transport, and how is it organised?
• Which activities are new compared with its existing operations?

A franchisee may be a retail or wholesale business. According to the approval guidance, this assessment depends on its activities, including who it sells to. Classification should therefore not be based solely on the premises looking like an ordinary café or restaurant.

Imagine that your existing café starts making dressings for independent franchisees. You are no longer selling only to the café’s customers. If the franchisor supplies food to franchisees, it will typically be a wholesale business and must be registered or approved as such. Have the specific activity assessed before deliveries begin.

A joint purchasing agreement does not necessarily mean that the franchisor stores or distributes the goods itself. Describe the actual arrangements precisely when you contact the authority.

Allocate tasks without obscuring responsibility

The franchise agreement should explain who will clarify which requirements and what documentation must be in place before opening. Simply stating that the franchisee must comply with applicable law is not enough if nobody knows who should take the next step.

Create a task schedule with four columns: activity, responsible business, clarification required and documentation. Add a named contact and an internal deadline for each task. This deadline is a planning tool and must not be confused with a statutory processing time.

For example, the franchisor can provide process descriptions and information about shared products. The franchisee can provide details of local operations and handle contact with the authority concerning its own business. If the franchisor operates a central warehouse, the requirements for that warehouse’s activities must be addressed separately.

An internal allocation of tasks does not, in itself, transfer responsibility under public law. The agreement should help the responsible business fulfil its obligations — not suggest that the franchisor’s support replaces them.

Make documentation a standard pre-opening checkpoint

Introduce a documented pre-opening check. This should not replace the authorities’ assessment, but should ensure that the franchise network does not overlook important matters in the rush to open.

At a minimum, the check should cover:

• The identity of the business that will operate the outlet.
• An up-to-date description of activities and the flow of goods.
• Evidence of the relevant registration or approval, including any conditions.
• Confirmation of when the activities concerned may legally begin.
• A procedure for assessing subsequent changes to operations.

Keep the documentation together and specify who will follow up on outstanding points. If there is uncertainty about matters such as supplying other shops or producing food in a shared kitchen, clarify the issue with the relevant food authority before operations begin.

Use the same procedure for later changes. A new warehouse, a production activity or a different delivery model may require a fresh assessment, even if the brand and franchise agreement remain unchanged.

Practical takeaway: First map the activities, then allocate the tasks, and check the documentation before opening. No specific franchise registration does not mean no registration obligations.