Doing Business In - International Franchise Association

ongoing. Most transfers using contracts based on these model clauses do not require
prior approval. Companies must bear in mind that the transfer of personal data to third
countries is a processing operation that is subject to the general data protection
Directive regardless of any Safe Harbor, contractual or consent arrangements.
EU countries’ Data Protection Authorities (DPAs) and large multinational companies are
also developing a third major approach to compliance with EU rules on transfers of
personal data to countries outside the EU. This is based on country-by-country approval
of “binding corporate rules” (BCRs). Companies that set up BCRs that satisfy European
DPAs will be able to use the presumption of conformity that these approvals provide to
transfer personal data from the EU to any location in the world – not just the United
States. BCRs can be a tool for compliance with privacy rules on a global scale. The
process of negotiation and approval of the BCRs is currently lengthy and complex, and
has not been attempted by small or medium-sized companies.
Key Links: http://www.export.gov/safeharbor/
http://ec.europa.eu/justice_home/fsj/privacy/modelcontracts/index_en.htm
http://ec.europa.eu/justice_home/fsj/privacy/workinggroup/wpdocs/2007_en.htm
Establishing an Office Return to top
For most small or mid-sized firms, an office in the Czech Republic is not worth the time
and expense. If you decide to do so, however, we recommend that you work with a local
attorney who can take on the burden of corporate registration and other paperwork.
Prague has a well-educated, multilingual population, many of whom have years of
experience in working for Western firms. Companies offering attractive salaries can
normally secure a talented nucleus of local staff for a new office. Executive recruiting
firms are active in Prague, though most executives use word-of-mouth to make hiring
decisions.
Franchising Return to top
Franchising has finally become a well-known, successful and popular concept in the
Czech market and it is poised for further growth. After a rather moderate start in the
1990s, franchising has seen a rapid growth especially after the Czech Republic’s
accession to the EU in 2004. Czechs have seen the success of the foreign franchising
systems and are now founding domestic franchising concepts and expanding abroad.
There are currently about 150 franchised brands on the Czech market, up by 67% over
the last three years. The total number of licensee holders increased by 33% over the
last three years, from 752 to over 1000 holders in 2006. Approximately 50% of the
franchised brands are of Czech origin. Most of these businesses operate in the
hospitality, hotel and retail markets.
Thanks to its advantageous geographic position and rapid economic development, the
Czech Republic is an ideal starting point for expanding a franchise into Central and
Eastern Europe. Many foreign franchise networks operating in Europe are still missing
in the Czech Republic and they are expected to enter the market soon. There is still a