How to effectively register and protect a trademark in franchising
Brands play a very important role in promoting companies' products and services. The holder of a registered trademark has, in general, the right to make exclusive use of it and to prohibit third parties, unless he agrees, from using identical or similar trademarks in his economic activity. It is important for every franchisor to know, both during and after the registration of the trademark, which tools and conditions allow him to effectively protect his brand.
Litigation in franchising: where does it come from, how to prevent it, how to solve it
Franchise networks, in Italy as in the rest of the world, are often characterized by a high level of conflict within them, which can give rise to disputes. Each franchise network should prevent conflict situations as much as possible and manage the conflict effectively, with the appropriate assistance of an experienced franchise lawyer.
Investments in franchising: how they are regulated in Italy from a legal point of view
The issue of the investments that franchisees must make in order to carry out their business within a franchise network is very important from a legal point of view. According to The Italian law n. 129/2004 on franchising, the franchisor must inform the franchisee on the costs related to the franchise network in which it operates, clearly and before the contract is signed.
Franchising in Italy: the 2020 scenario after the Covid 19 pandemic is surprisingly (or not?) positive
Assofranchising has published its updated annual survey on the Italian franchise scenario, referring to the year 2020. Despite the inevitable negative effects of the pandemic, franchising is one of the main engines of the Italian economy in Italy, being one of the sectors that reacts most positively to the economic crisis. These figures are very important, given the large number of franchised outlets that have been closed due to government restrictions on Coronavirus in Italy, and reflect the proactive approach of most franchisors in Italy towards the pandemic and the relationship with affiliates within the network.
Abuse of economic dependence and franchising: the AGCM initiates an investigation against Benetton in Italy
The Italian Antitrust Authority initiated an investigation against the Benetton group for a suspected abuse of economic dependence, regarding franchising agreements for the sale of products under the Benetton brand.
Franchising confirms to be increasing in Italy
The Assofranchising 2020 survey, referring to 2019, confirms that in Italy franchising is one of the main sectors of the Italian economy, with an average annual increase of 5%. The economic crisis caused by the Covid epidemic has also had a profound impact in Italy, but is having a limited effect on franchising, compared to other commercial activities.
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.
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?
Expanding a franchise in Italy: what 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.
Coronavirus emergency in Italy: what should franchisors do (and what are they doing)?
From a legal point of view, the Coronavirus emergency is having a direct impact on contractual obligations within franchise networks, as it can make it impossible, or in any case extremely difficult, the performance of certain services and the fulfilment of the payment of royalties. According to Italian law, the measures taken to prevent the Coronavirus epidemic can be a cause of exemption from liability for breach of contract, regardless of the contractual provisions in force.
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 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.