Italy

Franchise regulation

The Italian Franchise Act governs franchising.

Pre-contractual disclosure requirements

The franchisor must provide a copy of the agreement and certain information to the franchisee at least 30 days before execution. The disclosure document must cover, among other information:

• the nature of the subject matter of the franchise;
• a list of the franchisor’s own outlets and other franchisees;
• any variation in the number of franchisees over the last 3 years; and
• judicial and arbitration cases against the franchisor in relation to the franchise system concluded in the last 3 years.

The franchisee may also request a copy of the franchisor’s balance sheet for the past 3 years.

Registration

No

Other issues

Some mandatory clauses are to be included in franchise agreements, including the investment required by the franchisee, details of the know-how to be provided, and the services to be provided by the franchisor (e.g. commercial assistance, design of the outlet).

Franchisors must have 'tested' their franchise system on the market.

Difficulty Rating/Comments

Contact Claudia Ricciardi - Claudia.Ricciardi@twobirds.com or Rachele Macor - Rachele.Macor@twobirds.com