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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 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.

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.

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.

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.

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.

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.