New regulations for franchisees in 2025 – what do you need to know?

The franchise sector, although dynamically developing, has long been waiting for more precise and transparent legal regulations. While 2025 will bring the actual implementation of more advanced changes, it is already important to monitor what the draft new franchise act will introduce.

Potential franchisees must understand how franchise law 2025 will change, because the new regulations are intended to increase the protection of the weaker party to the agreement – the franchisee – and to standardise information requirements. Preparing for these changes is crucial if you want to avoid costly legal mistakes in the future.

Goal of the new regulations: greater transparency and protection

The main objective of the new franchise act is to improve transparency in the relationship between franchisor and franchisee. The changes are designed to reduce information asymmetry, which is currently one of the biggest pitfalls of this business model.

Key areas covered by franchise law 2025:

• Information obligation: Franchisors will probably be required to provide a much more detailed disclosure package before the franchise agreement is signed, including precise financial forecasts and data on the network’s profitability.
  
• Impact on key contract clauses: Introduction of provisions that protect franchisees against excessively restrictive clauses (for example, very long and broad non-compete clauses after the end of cooperation).
  
• Rules for terminating the agreement: Introduction of fairer rules for ending franchise agreements, intended to protect franchisees from unjustified and sudden termination of cooperation.
  

All these changes are meant to ensure that franchise law 2025 becomes more balanced and that the risk borne by investors is lower.

The new franchise act and your due diligence

Understanding what the new franchise act actually introduces is crucial for your due diligence. The new regulations do not release you from the duty to analyse the agreement thoroughly – but they do give you stronger tools to verify it. It is worth checking whether the franchisor proactively adapts to the new transparency standards and does not try to bypass the new information requirements.

When exactly will the new franchise act enter into force?

The exact date on which franchise law 2025 will enter into force depends on the legislative process and the publication of the regulations. Although 2025 is indicated as the year of key changes, you should follow governmental and industry communications to know the final date from which the new franchise act will become binding.

Will the new franchise act also apply to agreements that have already been signed?

As a rule, the new franchise act will apply to agreements concluded after it enters into force. However, some provisions concerning unfair clauses or information obligations may also be applied to earlier agreements, especially in the context of their renewal. You should discuss this with a lawyer.

What are the consequences for franchisors who violate franchise law 2025?

Franchise law 2025 is expected to introduce more specific sanctions for breaches. These may include financial penalties for a lack of transparency and for failing to provide the required information before the agreement is signed. In extreme cases, such breaches may give the franchisee a legal basis to have the agreement annulled.

Summary

The changes in franchise law planned for 2025 are a step towards a safer and more transparent market. As a franchisee, you are the direct beneficiary of these changes. Always remember to use professional legal advice. Franchisors that focus on innovation and transparency, such as Rentabox24, will be able to adapt quickly to the new requirements of franchise law 2025.