News & Blog

The information contained in the articles published in this blog are of a general nature and are not to be considered an exhaustive examination of the various issues, nor are intended to express an opinion or provide legal advice. Specific legal advice must be provided with regard to individual cases.

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.

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 franchise italy main features pros and cons why when

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.
misleading advertising italy what are sanctions for franchisors

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.
duration franchise agreements in italy

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.
Franchising in Italy assofranchising

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

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.
How to register and protect a trademark in franchising

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

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

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.
expanding franchise italy master franchising problems

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.

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