Italy

The Italian Republic is a peninsula located in Southern Europe extending into the Mediterranean Sea, bordering Austria, France, Switzerland, and Slovenia. Italy is slightly larger than Arizona and covers an area of 301,230 sq. kilometers.  The total population is 61.48 million and is growing at a rate of 0.34% with 68% living in urban areas.  The capital of Rome has a population of 3.7 million with other main cities including Milan (3.9 mil), Naples (3 mil), and Torino (2.1 mil). The people are governed by a republic, are predominately Roman Catholic. The primary language is Italian with small minorities speaking German and French in select regions. Italy was a founding member of the EU and NATO and adopted the Euro as currency in 1999.

Italy has a diversified economy well divided between the more strongly developed north and the less developed south where unemployment is much higher.  Its economy is dominated by trade and manufacture of high quality consumer goods. Italy’s main trade partners are Germany, France, Spain, UK, US, Belgium, Netherlands, and China. Its primary imports are engineering products, chemicals, transport equipment, energy products, textiles and clothing, and food, beverages, and tobacco. Exports include engineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals, and food, beverages, and tobacco. Italy’s GDP (Purchasing Power Parity) is $1.863 trillion and is shrinking at a real rate of 2.4% with an inflation rate of 3.3%. Italy ranked 73 out of 185 countries in the World Bank Group’s Ease of Doing Business Ranking.

Franchising Laws Overview                       

Disclosure laws: 

• Disclosure required 30 days prior to the contract.

Relationship laws: 

• The franchisor must have “tested its business concept in the market.”
• Contract must be at least 3 years.
• May only terminate for “substantial” breach.
• Franchise may not re-locate without franchisor’s consent.

Registration laws:

• None.

Click the links below for articles with more information on Franchising in Italy

Doing Business in Italy (2012)

Reform of European Union Rules on Distribution (2010)

European Commission's New Block Exemption Rules Enter Into Force June 1 (2010)

US Commercial Service market Report (2009)

News From Around the World: Franchising in the EU  (2008)

* CPI Score is published by Transparency International and relates to the perceptions of the degree of corruption as seen by business people and country analysts and ranges between 100 (highly clean) and 0 (highly corrupt).  

**Ease of Doing Business Ranking is determined by the World Bank Group and is ranked out of a possible 185 countries. www.doingbusiness.org  

Most recent statistics have been taken from the CIA World Factbook unless noted otherwise. 

International Franchising Opportunities

After you have finished researching the international markets, learning international expansion strategies and best practices, and understanding the basics of international franchising law, IFA provides numerous opportunities for franchising internationally.