Buying a franchise: who must obtain the licences and permits?

A recognised brand and a signed franchise agreement do not, on their own, mean you can start trading. Before joining a franchise network, you need to check which requirements apply to the business that will actually run your operation. The key questions are not just which licences and permits you need, but also whose name they must be in, who will obtain them and how you will demonstrate that the operating requirements have been met.

1. Distinguish the right to use the franchise from the right to carry on the activity

The franchise agreement allows you to use the franchisor’s business system on agreed terms. It does not grant you regulatory authorisation to carry on the activity. Nor does the successful operation of other members of the franchise network prove that your own company or business meets all the requirements.

Slovenia has no specific franchising act, mandatory franchise register or legally prescribed franchise disclosure document. The contractual relationship is governed by the general rules of the Slovenian Obligations Code (OZ), including the principle of good faith and fair dealing. The Companies Act (ZGD-1) governs matters such as a company’s legal status and representation, while the rules for your chosen activity govern its actual operation.

Registering a business and its activities is therefore no substitute for any required licences, permits, entries in specialist registers or professional qualifications. Slovenia’s SPOT business support portal and service points can simplify business formation, but you must check any additional requirements separately.

Before paying any non-refundable sums, ask for a precise description of the services and products you will offer. A broad label such as ‘service franchise’ is not enough to establish which requirements apply. What matters is what you will actually do, for whom and how.

2. Draw up a list of requirements for your outlet

Start by describing a typical working day: what the customer orders, who provides the service, what equipment is used and how products are handled. This will help you identify requirements that the franchise sales presentation may not mention.

Then prepare a table with five columns:

• Requirement: a licence, permit, registration, professional qualification or other condition.
• Legal basis and competent authority: where to check whether the requirement applies to your way of operating.
• Relevant holder or operator: the business, outlet or individual that must meet the requirement.
• Evidence: a document or verifiable information confirming that the requirement has been met.
• Responsible person and deadline: who will manage the process and when it must be completed.

Do not assume that every business model needs the same licences and permits. For food-related activities, check the requirements for food businesses; for regulated services, also check any professional qualification requirements for those providing them. These are starting points for your checks, not a universal list of obligations.

Cross-check the franchisor’s information against guidance from the competent authority or a specialist in the particular activity. Pay particular attention to additional services: even a small expansion of your offering may require a fresh assessment of the requirements.

3. Check who the supporting documents cover

A common and dangerous assumption is that the franchisor’s licence or permit also covers an independent franchisee. You must not infer this from a shared brand, a standard operating manual or a common ordering system.

For each supporting document, check the holder’s name, the activity covered, any specified outlet address, the scope of its validity and any conditions attached. If it is tied to a particular person, check whether that person will actually be involved in your business and in what capacity.

The same applies to training. A certificate confirming completion of the franchisor’s internal course is not necessarily evidence of a legally required professional qualification. Ask for a clear distinction between learning the business system and meeting statutory requirements.

If you are buying an existing outlet, do not assume that its licences and permits will transfer automatically. A change of operator, location or operating model may affect their validity or require a new application process. Before taking over, have the competent authority or a suitable adviser review the specific documents and the proposed change.

4. Include responsibilities in the contract and budget

A promise that the franchisor will ‘help with licences and permits’ is too vague. The agreement should specify whether the franchisor will merely provide a list of requirements, prepare technical documentation, assist with an application or provide specialist support. Also establish who will check that the documentation is suitable for use in Slovenia.

Set out separately who will pay for application procedures, external advisers, required checks and any additional training. Distinguish the cost of obtaining the necessary approvals and evidence from the cost of maintaining or renewing them. This will ensure that your initial budget covers not just opening the business, but also ongoing compliance.

Work with a lawyer to agree what happens if an essential licence or permit cannot be obtained, including the conditions for refunding sums already paid. Allocating tasks in the contract does not generally remove the responsibilities that the applicable rules place on the business operator. You therefore need your own compliance checklist, even if the franchisor manages the application process in practice.

Practical takeaway: before buying, draw up a list of requirements, identify who must meet each one and obtain verifiable evidence of compliance. A franchise brand offers a business opportunity; you still need to check that your own outlet meets the requirements to operate legally.