Franchising in Italy confirms to be healthy also in 2023
According to Assofranchising’s survey on franchising in Italy, referred to the year 2023, Franchising in Italy continues to show a growth trend, with a turnover increase of 9.9%, approaching 34 billion euros.
The food & beverage franchising sector is flying in Italy
Food and Beverage (F&B) is a sector of Italian society and economy at the heart of the lives of millions of people, in fact, the first European country in the F&B segment is Italy. The turnover in the franchising F&B, in Italy - has been constantly increasing each year, as - international franchise brands appear year by year.
Franchisors: why and how to adapt their Disclosure Document and Standard Franchise Agreement for Italy
Every foreign franchisor wishing to expand its franchise in Italy needs to adapt the disclosure document and franchise agreement of the Italian legal and commercial environment. Let’s briefly examine what adjustments and changes foreign franchisors need to expand their franchise in Italy.
Franchising confirms to be a growing business model in Italy also in 2022
The Franchising is confirmed, also in 2022, a business model in growth and success in Italy, despite the economic crisis. In Italy, operating franchises, stores and employees grew between 2021 and 2020. The 2021 turnover of the Italian franchise industry stands at 28,867 million euros, an increase of 6.7% compared to 2020.
Expanding a franchise in Italy through Master franchising: a brief guide
Master Franchising is by far the most common method of expanding a foreign franchise network in Italy. Through Master Franchising, the franchisor grants to a business partner based in Italy the right to conclude exclusive sub-franchise agreements in a certain area with affiliates , granting them the right to use the franchisor’s trademark and franchise package. There are many advantages for a franchisor in using the Master Franchise to expand its franchise internationally.
Franchising and preliminary agreements in Italy: the letters of intent (LOI) and option agreements
The first step for many franchisors, in Italy as well as in other countries, is often to negotiate interim agreement documents, called letters of intent before drafting, negotiating and agreeing the terms of the final agreement. There are other common preliminary agreements used before signing a franchise contract in Italy are called "option contracts".
Franchising in Italy: the regulation of misleading and comparative advertising: the sanctions for franchisors
The advertising of a franchise in Italy is subject to complex legislation, aimed at ensuring the proper functioning of the market and competition. The applicable rules are different depending on whether the advertising is aimed at potential affiliates or end customers. Legislative Decree No. 145/2007 prohibits misleading advertising, that is, advertising that misleads recipients and/or competitors and compromises the economic behaviour of the recipients. Comparative advertising is considered lawful by Italian law under certain specific conditions.
The body responsible for the application of the legislation on misleading and comparative advertising in Italy is the Italian Competition Authority.
Franchise agreements in Italy: duration, renewal, withdrawal, termination
According to Italian law, franchise agreements can be signed for either a fixed or indefinite period and must have a minimum duration of three years. In fixed-term franchise contracts, the parties may not withdraw freely unless expressly provided for in the contract.
Disclosure to potential franchisees: what it is provided for by Italian Franchise Law
According to the Italian Law on Franchising agreements , any foreign franchisor must provide aspiring franchisees, at least 30 days before the signing of the franchise contract , a disclosure document containing the complete copy of the franchise agreement to be signed , and a list of documents regarding the franchise chain.
How franchising is regulated in Italy
There is a specific law governing franchise contracts in Italy: Law N. 129/2004. Other general rules apply to franchise contracts in Italy, such as the rules laid down in the Italian Civil Code and the rules laid down in Legislative Decree N. 145/2007.
Franchising in Italy: almost 29 million euros the total turnover in 2021, up by +6.7% compared to 2020
Franchising is a growing business model in Italy, despite the economic crisis. Franchising remains the right choice for those who demonstrate a strong desire for entrepreneurship, but also a safe place for comparison, where to team up even in the most complex situations.
Abuse of economic dependence and franchising: the AGCM opens a procedure against Mc. Donald’s in Italy
The Italian Competition and Market Authority (“AGCM”) initiated an investigation against McDonald’s for alleged abuse of economic dependence, upon reporting by some former franchisees in the McDonald’s network, who had managed restaurants in some Italian regions.