Denmark is situated in Northern Europe bordering the Baltic Sea and the North Sea. It has an area of 43,075 square kilometres. The main peninsular of the country, Jutland is joined to the continent of Europe by a 68 kilometre border with Germany. The rest of the country is made up of numerous islands. The former colonies of the Faroe Islands, out in the North Atlantic and Greenland are now independent.

Denmark had a population of 5,356,845 in July 1999 with a population growth rate of 0.38%. About ¼ of the population live in the capital city Copenhagen. There are four languages spoken in Denmark. Danish, Faroese, Greenlandic (an Eskimo dialect) and German. The main religion is Evangelical Lutheran.

Denmark has a temperate climate throughout the year. Average temperatures range from -0.4°C in February to 16°C in July, which is the warmest month. The terrain is mainly low and flat.

Denmark first became a unified state in the 10th century and a constitutional monarchy in 1849. Its executive branch consists of a Monarch, Prime Minister and Cabinet appointed by the monarch. The legislative branch consists of a parliament, elected by popular vote based on proportional representation.

The economy is a modern market economy. It relies heavily on small scale and corporate industry. The labour force is concentrated in private and government services which account for 69% of GDP. Industry is centred around machinery, ships and chemicals. The country's scarcity of domestic raw materials means that it has to import heavily to ensure production. The currency unit in Denmark is the Euro.

The Association of Danish Franchisors was founded in 1984 and is a member of the European Franchise Federation.

There is no specific franchise law in Denmark.