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Set Up a Franchise Business in Italy

Set Up a Franchise Business in Italy

Local and foreign enterprisers thinking about starting a business in Italy have several choices with respect to the types of companies they want to open and the industries they want to activate in. The first option is to set up a new business venture, while the second one implies carrying forward an existing company through franchising.

Both options have their pros and cons and it is ultimately the investors’ decision which one suits them best. Below our company incorporation consultants in Italy explain below how foreign and local entrepreneurs can set up franchise businesses in this country.

Types of franchise businesses in Italy

Italy is one of the world’s most appreciated fashion capitals which is why this industry is also one of the economic sectors which have a large number of local franchise businesses. However, there are also foreign businessmen who decide to create franchise businesses in Italy by bringing large brand from outside Italy – these are called international franchises and are recognized by the local legislation.

Those who want to open franchise businesses in Italy must comply with certain regulations and legal frameworks which provide for the establishment of such venture. One of the rules relates to the preparation of a franchise agreement.

Our company formation agents in Italy can explain how to create a franchise here.

Laws related to franchising in Italy

The following laws must be respected upon the registration of a franchise business in Italy:

  • –          Law No. 129/2004 which is also known as the Contract Law;
  • –          the Commercial Code;
  • –          the Law on Intellectual Property;
  • –          the Consumer Law;
  • –          the Advertising Act.

Our local agents can offer more information on the legislation applicable when setting up a franchise in Italy.

How to register a franchise in Italy

Even if the franchise is an already-established venture, the creation of a franchise business in Italy, local or international, will imply registering a company with the Trade Register followed by the signing of the franchise agreement.

It should be noted that the Italian franchise business will carry out its activities under the name of the original company.

For assistance in starting a franchise business here, please contact our Italian company formation advisors.