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.

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.
abuse of economic dependence franchising

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 increasing in Italy

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.
coronavirus emergency italy legal issues franchisors reactions

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.
franchising business plan advertising tool boomerang

The business plan in franchising: advertising tool or boomerang?

In fact, if an affiliate does not comply with the provisions of the business plan, he can sue the franchisor for damages or early termination of the contract. In addition, the AGCM may impose heavy penalties on franchisors for misleading advertising.
franchise agreements how is regulated protected

Franchise know-how in Italy: what it is, how it is regulated, how it is protected

According to the Italian Franchise Law, all franchise agreements must contain and describe in detail the specific know-how provided by the franchisor to the franchisee and must have specific requirements. It is therefore important to check whether and how the franchisor’s confidential know-how can be protected in Italy.
expanding a franchise through subsidiary

Expanding a franchise in Italy through a subsidiary

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.
area representative agreement franchising

The Area Representative Agreement

A valuable option for foreign franchisors who wish to expand their franchise in Italy is to use an Area Representative agreement.
area development contract used italian franchise practice

Area Development: a contract increasingly used in Italian franchise practice

The multi-unit franchise model is increasingly widespread in the world, including Italy. Within the MUF model, the Scope Development Pact plays a key role. The Area development scheme offers many advantages to both parties.
expanding franchise italy master franchising problems

Expanding a franchise in Italy through Master franchising: how to face (and avoid) possible problems

Master Franchising is widely used in Italy, but of course it can present some problems, most of which can be avoided by foreign franchisors careful. This issue is closely linked to the selection of the Master franchisee, which is indeed a crucial process that should be managed by experienced local consultants and brokers.
expanding franchise italy changes franchisors documents manual training

Expanding a franchise in Italy through Master franchising: what changes are needed in terms of franchisor’s documents, manual and training?

Master Franchising is the most used method to expand a franchise network in Italy. But many foreign franchisors underestimate the changes in franchise contracts, documents, manuals and training programs needed to adopt this model in Italy. This adaptation takes time and costs.
expanding franchise master franchising

Expanding a franchise in Italy through Master franchising: the economics

Master Franchising is the most common method to expand a franchise in Italy. The popularity of the Master Franchise also has economic reasons, since it generally requires less resources from franchisors and allows for more revenue than direct franchising. In order to achieve this objective, however, certain conditions must be met: firstly, a correct quantification of the proportion of the fees charged by the master franchisee and distributed between the master franchisee and the franchisor, and a careful analysis of performance requirements and expenses.
expanding franchise italy direct franchising pro cons

Expanding a franchise in Italy: direct franchising

One of the most critical issues that any franchise company will face in its approach to the Italian market is the choice of the right structure to use for its expansion. This model has some pros, but also many cons. Widely used variants of the direct franchise model include area representatives, area developers, and branch offices.
economic financial analysis planned franchise expansion italy

The economic and financial analysis of a planned franchise expansion in Italy

Usually the first part of a feasibility plan for a franchise expansion project in Italy is an economic-financial analysis. Two of the main elements of this analysis are a good investigation of the Italian market and an analysis of possible changes to the concept of franchising.
exporting franchise italy importance good feasibility plan

Exporting a franchise in Italy: the importance of a (good) feasibility plan

Despite the epidemic from Covid, the number of franchises in Italy, also from abroad, increases year by year. But successfully expanding a franchise in Italy requires very careful planning, carried out through a serious feasibility plan, in order to avoid possible risks and/or failures. A good feasibility plan should address all aspects of the franchise development program in Italy, including economic analysis and legal and tax analysis, taking into account all the key factors that can influence the future success of a franchise in Italy.
italy increasingly attractive market for international franchise brands

Franchising in Italy: 2019 confirms Italy as an increasingly attractive market for international franchise brands, but keep attention to the feasibiliy plan!

The 2020 Assofranchising survey referred to 2019 confirms Italy as an increasingly attractive market for international franchise brands.
franchising food beverage italy during coronavirus crisis opportunity innovation

Franchising Food&Beverage in Italy during the Coronavirus crisis: an opportunity for innovation

The food & beverage franchising sector in Italy is reacting very positively to the Covid-19 crisis, showing capacity for innovation.
advertising franchise italy role italian authority agcm

Advertising the franchise in Italy: the role of the Italian Authority (AGCM)

The Authority in charge of applying the regulation concerning misleading and comparative advertising in Italy is AGCM. Lets’ see its powers and sanctions.
alternatives to franchising in italy

Alternatives to franchising in Italy

There are some alternatives to franchising to expand a business in Italy, such as licensing and distribution agreements.
termination franchise agreements in italy

Termination of franchise agreements in Italy

Termination of franchise agreements is a very delicate issue, regulated by specific rules under Italian Law.

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