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.

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.

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.

For a variety of reasons, franchisors may decide to expand their franchise in Italy through a subsidiary whose stock shares are controlled by the franchisor’s company.