|International Franchise Lawyers Association e.V.|
|Franchising in Italy|
|For further details please contact:||
DE LEO, Marco
Studio Legale Rinaldi e Associati
Via Conservatorio, 15
Franchising in Italy is mainly regulated by Law 129/2004.
Main provisions of Law 129/2004
'Franchising' is defined as a contract through which one party (the franchisor) grants to the other (the franchisee), against compensation, the use of a combination of intellectual property and/or industrial rights, know-how and technical and commercial assistance, as well as the opportunity to be part of a franchising network.
Execution and Duration of Contract
The franchising contract must be executed in writing; otherwise it is considered null and void.
Before organizing a franchising network, the franchisor must first test its commercial prospects.
The duration of a franchising contract, where a certain period is specified, must be at least three years, so as to give the franchisee sufficient time to recoup his investment.
Content of Contract
The written contract must specify:
At least 30 days before the date of execution of the franchising contract, the franchisor must deliver to the franchisee a final draft of the contract, together with annexes detailing the following information:
All of this information must then be included in the executed contract.
The franchisee (i) cannot transfer its seat without the prior written consent of the franchisor, and (ii) must keep confidential, and ensure that all its personnel keep confidential, all information regarding the franchising relationship.
During negotiations, both franchisor and franchisee must act fairly and in good faith, giving the other party all necessary and true information.
If one party provides false information, the other party may claim for termination of the contract and compensation for damages.
ConciliationIn the case of disputes, before filing suit or commencing arbitration the parties may agree to seek conciliation in accordance with the rules of the local chamber of commerce.