Open a Franchise Business in Italy

Open a Franchise Business in Italy

Updated on Wednesday 03rd January 2018

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Open-a-Franchise-Business-in-Italy.pngItaly is a country where franchising businesses have developed over the years at a steady rate. At the level of 2015, the number of franchising companies increased by 15% compared to 2008, while the companies' turnover increased by 4% (for the same period). Italy is one of the most important European markets for franchising businesses (the fourth European country). 
At the level of 2015, there were more than 50,100 franchises operating here, having a total value of $25.850 billion, which accounted for 1% of the country’s gross domestic product. A franchise business is established through a franchising agreement, and our team of Italian lawyers can offer advice on the main stipulations that have to be included in this type of document. 

How to operate as an Italian franchise business 

Companies which want to enter a franchise agreement have several options in this sense. Italian companies operating through a franchise agreement usually employ the direct franchising method. This type of franchising refers to the fact that the franchisor (the legal entity that allows another party to use the business model of the company) allows the franchisee to establish a franchising unit in a particular region of the country, or multiple franchises in the same area. 
Italian companies that have established franchising networks in Italy also employ the master franchise agreement, which can be detailed by our team of Italian lawyers

Foreign franchises in Italy 

Foreign companies can also enter the Italian market by establishing a franchise agreement. In this case, the most common type of contract employed by foreigners is the master franchise agreement. In a master franchise agreement, the franchisor offers intellectual property rights to the franchisee, but at the same time, the franchisee is allowed to sublicense other parties for setting up a franchise business
The general stipulations of a franchise contract are established under the Law No. 129/2004, but other legal acts are also available, such as the Consumer Code or the Code of Intellectual Property
Local or foreign companies interested in setting up a franchise business here are invited to contact our law firm in Italy for in-depth advice on any legal matter concerning this subject.