Our client was the newly constituted Italian subsidiary of a multinational company in the fitness franchise sector. The parent company was based in Spain and was one of the biggest and successful fitness operating franchises in Spain, with more than 100 affiliates throughout the country.
The franchisor has already expanded its franchise in some countries over Europe (namely Ireland, Holland and Belgium) and was planning to expand also in other countries, including Italy.
The franchisor’s concept was innovative for the Italian market (and not only) being based on an intensive training system, consisting mainly of boxing techniques, with the use of patented technologies, under the supervision of a trainer.
The typical franchisee’s premises was a small-medium gym, located in the center of a medium-big city. The Italian CEO of the branch needed legal advice as to the planned expansion of the franchise in Italy, in the form of direct franchising, through the Italian subsidiary .
Our legal activity was quite extensive and carried out in a relatively short time, given that the Client’s expansion project in Italy was quite advanced and a possible multi-unit Italian franchisee had already been identified, with the expectation to open the first center in Milan, in a few months.
After some initial conversation and meetings, during which we exposed to the Client the main legal aspects connected to the expansion of a franchise in Italy, we immediately started working by drafting the disclosure franchise document , compliant to Italian Franchise Law (in Italian language). Such important activity was made in strict coordination with the Client.
At the same time, we performed a careful review of the standard franchise agreement, together with its attachments, according to Italian Franchise Law, translating it into the Italian language. Such activity was also made in strict coordination with the Client, namely with the Client’s legal advisors in Spain, with whom an intense and constructive comparison took place, through several mail, telephone and video meetings.
Finally, we drafted and/or reviewed other important contractual documents, ancillary to the franchise agreement, such as an option contract (to be signed before the franchise agreement, a software license agreement, and a lease agreement, and we also checked the Client’s advertising material to be used for future affiliations.
The Client was very satisfied with our activity, that was performed within the short time limit planned. The first franchise fitness center has been successfully opened a few months ago in Milan.
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