planning franchise expansion italy legal due diligence

Planning a franchise expansion in Italy: the legal due diligence

Initial legal due diligence on the Italian environment is essential for any foreign franchise willing to expand in the Italian market.
franchisors protect trademark brand name IP

IP rights in Italy: how franchisors can protect their trademark and brand name?

Intellectual property rights, in particular trademarks, are some of the most valuable assets of franchise systems in Italy. With the growth of the Internet this assumption is even more true than ever.
termination of franchise agreements in italy

Not to Compete Covenants after the termination of franchise agreements in Italy

Non-compete agreements after the termination of a franchise contract are quite common in Italy, as in other countries. Under this agreement, the franchisee undertakes not to engage in any activity in competition with that carried on in the franchise network for a certain period of time following the termination of the franchise contract. Its main function is to protect the reputation and common identity of the franchise network and the know-how of the franchisor.
Franchising

Franchising in Italy: entry fees, royalties, purchase and resale prices

In all Italian franchise agreements, franchisees are usually required to pay the franchisor an entry fee and royalties. Hidden royalties, in the form of price for the goods purchased by the franchisee, are also common. Franchisors can neither impose a minimum resale price on goods to the public nor impose a fixed price, although there are some exceptions.
how is franchising regulated italy

How is franchising 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.
how is franchising regulated italy

Franchising and e-commerce: can franchisors (legally) limit online sales and social media by franchisees?

Can a franchisor prohibit franchisees from marketing products and/or services online in order to protect other franchisees with exclusive territorial rights? How can franchisors regulate the supply of goods and services made by affiliates through their websites? Can a franchisor prohibit a franchisee from using social media to promote their business?
how expand franchise italy

Expanding a franchise in Italy: what are the options?

When considering franchising as an option for business expansion in Italy, you need a carefully planned approach, since the choice of the structure used for the expansion in Italy will probably have a dramatic impact on the success of the entire project. Master franchising is the preferred solution for foreign franchisors in Italy, as it allows them to achieve significant expansion without significant expenses and risks. But there are alternatives.
exclusive rights in italian franchising agreements

Franchising: defining exclusive territory rights

Under an exclusivity clause, franchisors cannot enter into other franchise contracts within a given area, as described in the franchise agreement. Such clause, prevents affiliates in the same network from competing with each other and provide them with a secure slice of the market. According to Italian law, if a franchisor does not duly fulfill an exclusive right of the franchisee, the franchisee generally has the right to terminate the franchise contract, and to receive damages. Some franchise agreements in Italy do not have any territorial exclusivity, or even very limited.
disclosure potential franchisees what provided italian law franchising

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.
franchising preliminary agreements letters of intent loi

Franchising and preliminary agreements in Italy: 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 confirms to be a winning model in Italy: in 2024, franchising turnover reaches €. 35.8 billion, accounting for 1.8% of Italian national value added

Despite the uncertain economic climate and an international landscape characterized by tariffs and geopolitical tensions, franchising continues to grow in Italy, a sign of the sector's strong resilience and transformative capacity.

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.

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