Doing Business In - International Franchise Association
Doing Business In - International Franchise Association 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
lack of U.S. firms present, so U.S. franchisers should not miss the opportunity to enter the Czech booming market. Another key point for U.S. franchisers is that their licenses are comparatively cheaper given the weakness of the dollar. For that reason, Czech investors may find investment in this sector especially profitable at the moment. From a legal perspective, Czech legal system is liberal and places no barriers for entrance and operation of a franchise. Franchising takes the form of a contract between two entities that is regulated by the Commercial Code pertaining to commercial contracts and sales and licensing agreements. Access to capital has also improved with Komercni Banka offering a financing program geared towards potential franchisees in the Czech Republic (http://www.kb.cz/en/). Direct Marketing Return to top The top direct marketers in the Czech Republic are Amway, Avon, Just, Lux, Mary Kay, Oriflame, Tupperware, Vorwerk and WS International. Turnover in this market is about $200 million per year, and the number of registered dealers is 200,686. 96% of these are women, and 85% work part-time. Direct marketers enable these firms to reach clients in small towns and villages, where retail outlets are limited. Both Amway's multilevel and Lux's one-level marketing approaches have worked here. Network marketing has also developed with a number of successful "membership" stores in Prague, Brno, Plzen, and Ostrava. The Czech National Association of Direct Marketing organizes seminars and promotes international rules of direct marketing, such as the length of guarantees and the consumer's right to return a product. More information on direct marketing in the Czech Republic can be found on www.cnspp.cz There is a wide range of EU legislation that impacts the direct marketing sector. Compliance requirements are stiffest for marketing and sales to private consumers. Companies need to focus, in particular, on the clarity and completeness of the information they provide to consumers prior to purchase, and on their approaches to collecting and using customer data. The following gives a brief overview of the most important provisions flowing from EU-wide rules on distance selling and on-line commerce. It is worth noting that the EU is currently overhauling its consumer protection legislation. Companies are advised to consult the information available via the hyperlinks, to check the relevant sections of national Country Commercial Guides, and to contact the Commercial Service at the U.S. Mission to the European Union for more specific guidance. Processing Customer Data The EU has strict laws governing the protection of personal data, including the use of such data in the context of direct marketing activities. For more information on these rules, please see the privacy section above.
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- Page 3 and 4: table for conversion to the euro ha
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- Page 7: Key Link: http://www.ombudsman.euro
- Page 11 and 12: Key Link: http://ec.europa.eu/inter
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- Page 17 and 18: http://www.efsa.europa.eu/EFSA/Scie
- Page 19 and 20: Key link: http://ec.europa.eu/consu
- Page 21 and 22: Copyright The EU’s legislative fr
- Page 23 and 24: design. Amendments to the trademark
- Page 25 and 26: Provisions of Nutritional Labeling:
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- Page 29 and 30: Resources Return to top Updated inf
- Page 31 and 32: Automotive Parts and Equipment (APS
- Page 33 and 34: Electronic Components (ELC) Overvie
- Page 35 and 36: Medical Equipment (MED) Overview Re
- Page 37 and 38: Telecommunications Eq. (TEL) Overvi
- Page 39 and 40: Center for e-Commerce www.e-commerc
- Page 41 and 42: • Project financing comes from va
- Page 43 and 44: • Metal detectors • Monitoring
- Page 45 and 46: Financial Services (FNS) Overview R
- Page 47 and 48: Association of Czech Building Savin
- Page 49 and 50: There is room for growth in the fas
- Page 51 and 52: Contacts: Hana Obrusnikova, Senior
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lack of U.S. firms present, so U.S. franchisers should not miss the opportunity to enter<br />
the Czech booming market. Another key point for U.S. franchisers is that their licenses<br />
are comparatively cheaper given the weakness of the dollar. For that reason, Czech<br />
investors may find investment in this sector especially profitable at the moment.<br />
From a legal perspective, Czech legal system is liberal and places no barriers for<br />
entrance and operation of a franchise. Franchising takes the form of a contract between<br />
two entities that is regulated by the Commercial Code pertaining to commercial contracts<br />
and sales and licensing agreements. Access to capital has also improved with Komercni<br />
Banka offering a financing program geared towards potential franchisees in the Czech<br />
Republic (http://www.kb.cz/en/).<br />
Direct Marketing Return to top<br />
The top direct marketers in the Czech Republic are Amway, Avon, Just, Lux, Mary Kay,<br />
Oriflame, Tupperware, Vorwerk and WS <strong>In</strong>ternational. Turnover in this market is about<br />
$200 million per year, and the number of registered dealers is 200,686. 96% of these<br />
are women, and 85% work part-time. Direct marketers enable these firms to reach<br />
clients in small towns and villages, where retail outlets are limited. Both Amway's multilevel<br />
and Lux's one-level marketing approaches have worked here. Network marketing<br />
has also developed with a number of successful "membership" stores in Prague, Brno,<br />
Plzen, and Ostrava.<br />
The Czech National <strong>Association</strong> of Direct Marketing organizes seminars and promotes<br />
international rules of direct marketing, such as the length of guarantees and the<br />
consumer's right to return a product. More information on direct marketing in the Czech<br />
Republic can be found on www.cnspp.cz<br />
There is a wide range of EU legislation that impacts the direct marketing sector.<br />
Compliance requirements are stiffest for marketing and sales to private consumers.<br />
Companies need to focus, in particular, on the clarity and completeness of the<br />
information they provide to consumers prior to purchase, and on their approaches to<br />
collecting and using customer data. The following gives a brief overview of the most<br />
important provisions flowing from EU-wide rules on distance selling and on-line<br />
commerce. It is worth noting that the EU is currently overhauling its consumer protection<br />
legislation. Companies are advised to consult the information available via the hyperlinks,<br />
to check the relevant sections of national Country Commercial Guides, and to<br />
contact the Commercial Service at the U.S. Mission to the European Union for more<br />
specific guidance.<br />
Processing Customer Data<br />
The EU has strict laws governing the protection of personal data, including the use of<br />
such data in the context of direct marketing activities. For more information on these<br />
rules, please see the privacy section above.
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