Franchising in Norway: balancing complexity in a contractual relationship

Abstract

The principal objective of this article is to analyse the contractual relationship between franchisor and franchisees in Norwegian franchise systems. Divergent and mutual interests, a wide range of rights and obligations and a focus on uniformity make the franchise agreement rather distinct from other contractual relationships. Balancing the complexity of the arrangement with the parties’ adaptability and allowing enough flexibility in the system to maintain uniformity and the reputation of the concept could be decisive for the success of the system. A study of franchise agreements may reveal whether the parties’ rights and obligations are sufficiently balanced to ensure best practice and the quality of the franchise system.