The Grand Duchy of Luxembourg, the smallest member state in the European Union, is an independent sovereign state located between Belgium, France and Germany. It has an area of 2,587 square kilometres. It is only 82km long and 58 km wide.

Luxembourg had a population of 429,080 in 1999, with a population growth rate of 0.88%. The language of the country is Luxembourgian, a Franklish dialect. French, German and English are also recognised. The main religion is Roman Catholic.

The climate is temperate without extremes. Averaging from -2°C to 18°C in summer. The country is divided into two clearly defined regions. In the north " Oesling", the uplands of the Ardennes. It is a hilly region with a high point of 547 metres. The south and centre are referred to as the " Good Land" which consist of farmland and woods.

Luxembourg gained independence from the Netherlands in 1839. It is a constitutional monarchy. The executive branch of government consists of a Monarch, Prime Minister and Council of Ministers appointed by the Monarch and responsible to the Chamber of Deputies. Members of the Chamber of Deputies are elected by popular vote. The Council is assisted by an advisory body know as the Consil d'Etat or Council of State.

The country's economy is prosperous with low inflation and unemployment. In the southwest of the country lies the iron and mining district. Although once dominated by steel, it has become more diversified. Chemicals and rubber are now produced. The growth in the financial sector now accounts for a larger part of the economy. Luxembourg has especially close ties with Belgium and the Netherlands. Luxembourg has its own currency, the Luxembourg Franc, which is freely interchangeable with the Euro.

Franchising is growing in Luxembourg.

The Luxembourg Franchise Association is a member of the European Franchise Federation.

There is no specific franchise law in Luxembourg.