I. Economic data

A. Macro-economic data

- General data[1]

Population 2023: 58,850,762 inhabitants
Area: 302,079 km2
Density 2023: 195.4 inhabitants/km2[2]
GDP (nominal) 2022: $2.049 billion[3]
GDP/capita 2022: $34,776[4]
GDP (PPP) 2022: $3.112 Billion[5]
GDP (PPP)/capita 2021: $46,165
Growth rate 2022: 3.7%
GNI/capita (PPP) 2022: $68,888
HDI 2020: 0.89
Literacy rate in 2019: 99.35%
Life expectancy 2021: 82.8 years

- Policy[6]
 
Italy, a member of the European Union, is a unitary state made up of a continental, peninsular and insular part, with the three main islands of Sicily, Sardinia and Elba.
 
Italy is a parliamentary republic. At the time of writing, Sergio Mattarella has been the President of the Republic since February 3, 2015, and Giorgia Meloni has been the Prime Minister since October 22, 2022. Giorgia Meloni also chairs the European Conservatives and Reformists party and the Italian Brothers party. She advocates a social, national and populist movement.
 
- Economic development[7]
 
As a G20 member, Italy ranks tenth in the world in terms of nominal GDP[8].
 
Italy's economic growth was significantly affected by the 2009 economic crisis and the COVID-19 health crisis. Indeed, during the COVID-19 pandemic, in 2020, its growth rate dropped to -9%. However, in 2021, Italy experienced an economic rebound with growth of 6.7%.
 
Italy has the second highest public debt in the European Union (142.2% of GDP), after Greece[9]. Despite reforms, Italy's public debt has been growing since 1990. Nevertheless, the vast majority of public debt is held by Italian residents[10].
 
In 2022, Italy's unemployment rate was 8.1%. Among young people (aged 15-24), the unemployment rate reached 23.1% in the same year.
 
- Resources[11]
 
Italy's main resources in 2022 were agriculture, manufacturing (automobiles, machinery, chemicals, textiles and fashion) and tourism (Italy ranked fifth among tourist destinations in terms of number of tourists in 2021). In 2020, tourism generated $20,459 million in revenue for Italy.[12]
 
In addition, Italy has natural gas resources, renewable energies (solar and wind) and significant hydroelectric and geothermal resources, but has foregone nuclear power altogether.
 
- Population[13]
 
Italy's urban population accounted for 71% of the total population in 2022. Around 13% of Italy's population is under 15, 63% between 15 and 65 and 24% over 65.[14]
 
With over 58 million inhabitants, Italy is the third most populous country in the European Union.
Italy boasts several major coastal cities: Rome, Naples, Genoa, Palermo.
 
The ten most populous cities in Italy are Rome (2,760,000), Milan (1,362,000), Naples (922,000), Turin (853,000), Palermo (637,000), Genoa (564,000), Bologna (390,000), Florence (365,000), Bari (317,000) and Catania (301,000). [15]
 
- Foreign investment[16]
 
Italy is heavily involved in foreign trade, and in 2022 foreign trade in goods and services reached €1,525 bn. Imports increased more (+36%) than exports (+20%).[17]
 
Italian exports head mainly for European Union countries. Germany is the 1st destination for Italian exports (13%, i.e., €67 bn), ahead of France (10%, i.e., €53 bn) and the United States (9%, i.e., €49 bn).
 
Moreover, the European Union is Italy's biggest supplier (56.7%). Germany retains its first place (16%, €77 bn) ahead of France (8%, €39 bn) and China (8%, €38 bn).
 
The majority of foreign direct investment stocks are held by France (22.2%), the USA (10.4%), Germany (8.3%) and the UK (7.3%).[18]
 
B. Economic data specific to franchising
 
- Historical background
 
Franchising first appeared in Italy on September 18, 1970, when Gamma di set up its first franchised outlet.[19]
Since then, franchising has developed in the country at an initially moderate pace, which has since accelerated.
 
- Institution[20]
 
Italy has set up the Italian Franchise Association (Assofranchising)[21]. The deed setting up the Italian Franchise Association was signed in Milan on October 19, 1971.
 
In 2013, Assofranchising joined Confcommercio-Imprese for Italy: it is the largest business representative body in Italy, with over 700,000 members.
 
Assofranchising is one of the founding members of the European Franchise Federation. The association has adopted a code of ethics, which its members undertake to apply in coordination with the European Franchise Code of Ethics.
 
Since 1993, the association has published an annual report on the state of the franchising sector in Italy.
Finally, the Italian Franchising Association has over 80 partner brands.
 
- Trade shows
 
The first franchising exhibition at the Milan Fair was held in 1985, bringing together 40 exhibitors who were members of the Italian Franchising Association[22].
 
The 38th Salone Franchising Milano will be held from October 2 to 4, 2025 at Allianz-MiCo[23].
 
- Statistics[24]
 
According to the Assofranchising report, there were 954 franchisors in Italy in 2022, and 61,162 franchised outlets.
 
Among the best-performing sectors, retail accounts for 37% of total franchise sales, with revenues of 11.3 billion euros. Clothing accounts for 24% with 7.5 billion euros, and services for 15% with 4.5 billion euros. Next, the catering sector accounts for 11% of total franchise sales, while the home and specialized retail sectors each account for 5%. Finally, the beauty sector accounts for 3% of total franchise sales.
 
Franchisees are mainly aged between 36 and 55. In addition, 57% of franchisees are men and 43% are women.
 
The Italian regions with the most sales outlets are Lombardy (9,955), Lazio (6,734),   Campania  (4,805), Emilia-Romagna (4,757) and Sicily (4,665).
 
- Contract content

The average duration of a franchise contract is 5 to 10 years.
 
Average franchise costs vary according to the franchise sector being considered. For example, for an Italian restaurant franchise, franchise fees generally range from 30,000 to 300,000 euros. The total investment can range from 90,000 to 1,200,000 euros.[25]
 
- Economic impact
 
According to the Assofranchising report, sales generated by the franchising sector exceeded 28 billion euros[26] . The number of people employed was 252,848[27].
 
- International[28]
 
Italian franchises, whether operating in the food, fashion or other sectors, may seek to export their concept internationally. Italian brands often have a strong appeal due to the widely recognized culture, design and quality associated with Italy.
 
In 2017, franchise networks were overwhelmingly national. Out of 947 franchisors, 889 were Italian.[29]
 
II. Legal information
 
A. Legal information directly related to franchising
 
- Applicable legislation
 
Italy has specific legislation on franchising: the Italian Franchising Act (Legge sulla franchising)[30] and Ministerial Decree no. 204/2005.
 
Section 1 of the Italian Franchise Act defines franchising as a contract, however it may be referred to, between two economically and legally independent entities, by which the franchisor grants the franchisee, in return for remuneration, a set of industrial or intellectual property rights relating to trademarks, commercial names, brands, designs, models, copyrights, know-how, patents, technical and commercial assistance or advice, by including the franchisee in a system made up of a number of franchisees distributed throughout the territory, with the aim of marketing certain goods or services.
 
Section 3 of the Italian Franchise Act requires that franchise agreements be in writing.
 
The ministerial decree mentioned earlier applies to franchisors operating outside Italy.
 
At a European level, the European Franchise Federation, of which the Italian Franchise Association is a member, has drawn up the European Franchise Code of Ethics, which sets out the obligations of franchisors and franchisees.
 
Section 6 of the Italian Association's Code of Ethics specifies that the franchise contract must:
- be written in a clear and exhaustive manner;
- require franchisees to comply with the rules set out in the European Code of Ethics.
 
- Pre-contractual information
 
Italian franchise legislation places particular emphasis on protecting the rights of franchisees. Under Section 4, the franchisor must disclose information to the potential franchisee 30 days before the contract is signed, for example, on franchise fees, the parties’ duties, the franchisor's assistance to the franchisee, contract renewal and financial forecasts.
 
The ministerial decree also requires foreign franchisors operating in Italy to disclose a pre-contractual information document at least 30 days before signing the franchise agreement. The pre-contractual information document must contain - in addition to the information set out in Italian franchise law - a list of franchisees operating in each country and the corresponding number of outlets. If requested by the potential franchisee, the franchisor must also disclose the contact details of around twenty active franchisees[31].
 
Furthermore, Section 5 of the Assofranchising code of ethics specifies that the franchisee must submit a total of 8 documents to the franchisor at least 30 days before signing the franchise agreement.
 
Finally, paragraph 3 of the preamble to the European Code of Ethics for Franchising states that "The principles of the Code are applicable at all stages of the franchise relationship, whether pre-contractual, contractual or post-contractual". Accordingly, Section 3, paragraph 3 of the European Code of Ethics specifies that the franchisor must provide a pre-contractual information document, which must be in writing, before signing the franchise agreement. This document must contain information on the content of the contract and the resulting expenses.
 
- Contract performance
 
Under Section 1375 of the Italian Civil Code, the parties must perform the contract in good faith.
 
Italian franchise law specifies that the duration of the franchise contract must allow the franchisee to achieve a return on investment. The duration of the contract may not be less than three years.
 
Section 2 of the European Franchising Code of Ethics specifies that franchisees must collaborate loyally for the success of the network they have joined, be responsible for the financial and human resources they commit to the franchise network, and act loyally towards all franchisees in the network.
 
The European Franchising Code of Ethics adds that the parties shall preserve the image and reputation of the network while carrying on their respective businesses, act fairly in their mutual relations and notify the other party of any breach of contract, respect the confidentiality of information relating to the franchise network, and resolve disputes in good faith and loyalty through direct communication and negotiation. If direct negotiation fails, the parties must seek to resolve the dispute in good faith through mediation and/or arbitration where appropriate (Section 2, paragraph 4).
 
- Jurisdiction and applicable law
 
Firstly, Italy is a party to the 1968 Brussels Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters. In addition, the Brussels I-bis Regulation (EU)[32] applies to Italy. This regulation contains rules for determining the competent court (Sections 1 to 6). It also provides for cases where the parties to a dispute have used a jurisdiction clause (Section 25) in their contract, in order to define the competent jurisdiction in advance.
 
In contractual matters, the Rome I Regulation (EU)[33] governs the law applicable to contracts. Parties may choose the law applicable to their contract, subject to certain limitations set out in the regulation.
 
It is important to note that the choice of applicable law and jurisdiction often needs to be clearly drafted in the contract to be fully effective. Parties can benefit from legal advice to ensure that such clauses are drafted accurately and in compliance with applicable laws.
 
The parties to a contract may agree to a jurisdiction clause, specifying the competent court in the event of a dispute. Such clauses are generally respected by Italian courts, except in exceptional circumstances. Italy is also a party to the 2005 Hague Convention on Choice of Court Agreements. This convention facilitates recognition and enforcement of agreements conferring jurisdiction.
 
Finally, Italy has ratified the New York International Convention[34] facilitating the recognition and enforcement of foreign arbitral awards.
 
- Trademarks
 
Trademark law is governed by the Industrial Property Code ("Codice della Proprietà Industriale"). This code includes provisions for the registration, protection and management of trademarks.
 
Once registered, trademarks are protected for 10 years from the date of the application. The owner of the registered trademark enjoys exclusive rights to use the trademark. Application for registration is made to the Italian Patent and Trademark Office.
 
Sections 98 and 99 of the Industrial Property Code regulate know-how and trade secrets. Consequently, when they are disclosed to third parties or obtained fraudulently, legal action is possible for the owner of the know-how and/or trade secret.
 
Italy has signed up to the 1967 Paris Convention, which specifies that each contracting State grants the same intellectual property protection to nationals of other contracting States as it does to its own nationals.
 
Italy is also a member of the Madrid Agreement, enabling companies to obtain trademark protection in up to 130 countries by filing a single international application, in a single language, with the World Intellectual Property Organization (WIPO). Under Section 6 of the Madrid Agreement, trademark registration is valid for 20 years.

To go Further by MIIP

In Italy, trademark applications can be handled both nationally and through WIPO. Examinations cover both formality and substantive aspects. Multi-class applications are accepted. Trademarks become vulnerable to cancellation for non-use five years from the registration date.  To develop a franchise in this country, it is advisable to cover "Business assistance relating to franchising" and "retail services" which are both accepted under class 35 by the trademark office. Recording a franchising agreement is not compulsory.
 
B. Peripheral legal data
 
- Competition law
 
The law on anti-competitive practices is governed by the law of October 10, 1990[35], known as "Legge n. 287 del 10 ottobre 1990" and, where the contract falls within the scope of the latter, by European competition law. The institution responsible for enforcing these provisions is the Competition and Market Authority (Autorità Garante della Concorrenza e del Mercato) (AGCM).
 
Section 2 of the law of October 10, 1990 prohibits agreements between companies whose purpose or effect is to restrict competition in the national market or in part of it.
 
This means that agreements concerning market sharing and the fixing of sales prices are null and void.
Discriminatory practices with regard to different commercial partners and making entering into a contract conditional upon subscription to other services which, by their nature, have no connection with the contract are also void.
 
However, these provisions do not apply when the supplier's market share is less than 5%, in which case the clause is deemed to have no consequent effect on competition.
 
With regard to European competition law, Sections 101 and 102 of the Treaty on the Functioning of the European Union (TFEU) prohibit anti-competitive agreements and abuses of dominant positions. With regard to vertical agreements containing restrictions of competition, an exemption is provided by exemption regulation no. 2022/720 of May 10, 2022 on the application of Section 101 of the TFEU. In order to qualify for exemption under this regulation, the agreement in question must not involve the fixing of a selling price or the imposition of a minimum selling price (it is possible, however, to impose a maximum selling price or to recommend a selling price). Nor must the agreement contain any restriction on the territory in which the franchisee may sell the contracted goods or services (with certain exceptions), or any non-competition clause of indefinite duration or exceeding five years, etc.
 
- Personal data
 
In Italy, the protection of personal data and privacy is governed by the General Data Protection Regulation (GDPR)[36], which is European Union legislation that applies across all member states. The GDPR was adopted in 2016 and came into force on May 25, 2018.
 
The GDPR establishes a comprehensive legal framework for the collection, processing and storage of personal data, guaranteeing respect for fundamental rights to privacy and data protection. The GDPR protects only the personal data of natural persons, but it must be complied with by any organization or person carrying out processing of personal data, whether automated or not, contained or intended to be contained in a file (Article 2 of the GDPR).
 
The GDPR applies when the controller (the person initiating the processing) and/or the processor are established in a territory of the Union, as well as when the personal data processed are those of people in the territory of the European Union (Article 3 of the GDPR).
 
The GDPR specifies that the data controller must have defined the purposes for which it wishes to process personal data. Furthermore, only the data strictly necessary to achieve these purposes must be processed, under the principle of data minimization.
 
Article 6 of the GDPR provides six legal grounds for processing data:
 
-the data subject has consented to the processing of his/her personal data for one or more specific purposes;
-processing is necessary for the performance of a contract to which the data subject is party or for the performance of pre-contractual measures taken at the data subject's request;
-processing is necessary to comply with a legal obligation to which the controller is subject;
-processing is necessary to safeguard the vital interests of the data subject or of another natural person;
-processing is necessary for the performance of a task carried out in the public interest or in the exercise of official authority vested in the controller;
-processing is necessary for the purposes of the legitimate interests pursued by the controller or by a third party, unless the interests or fundamental rights and freedoms of the data subject which require the protection of personal data prevail, in particular where the data subject is a child.
 
In Italy, the supervisory authority responsible for applying the GDPR is the Personal Data Protection Authority (Garante per la Protezione dei Dati Personali).

- Special provisions for foreign investments
 
As a member of the European Union, under Section 63 of the TFEU Italy cannot in principle impose restrictions on the movement of capital from EU member States or non-EU countries.
 
Italian law does not impose any general restrictions on foreign investment.
 
The franchisor can therefore set up branches and subsidiaries in Italy under the same conditions as Italian nationals.
 
Italy has also been subject to European rules on foreign direct investment (FDI) since the Foreign Investment Screening Regulation[37] came into force. The purpose of this regulation is to establish a European framework for cooperation to assess foreign investments likely to threaten security and public order in EU member States. Italy, as a member State, must notify and cooperate with the European Commission and other member States on foreign investments in critical sectors.


Main websites 

- Intellectual property: https://uibm.mise.gov.it/index.php/en/;
- Assofranchising: https://www.assofranchising.it/;
- National Institute of Statistics: https://www.istat.it/;
- Competition: https://www.agcm.it/;
- Personal data: https://www.garanteprivacy.it/;
- World Bank: https://www.banquemondiale.org/fr/home


[1] Unless otherwise stated, general data are taken from the World Data Atlas.
[2] https://www.populationpyramid.net/italy/2023/
[3] https://donnees.banquemondiale.org/indicator/NY.GDP.MKTP.CD?locations=IT
[4] https://donnees.banquemondiale.org/indicator/NY.GDP.PCAP.CD?locations=IT
[5] https://donnees.banquemondiale.org/indicator/NY.GDP.MKTP.PP.CD?locations=IT
[6] Unless otherwise stated, general data are from World Data
[7] Unless otherwise stated, the information below is taken from https://www.tresor.economie.gouv.fr/Pays/IT/situation-economique-et-financiere-de-l-italie#:~:text=Apr%C3%A8s%20a%20rebond%20of%20%2B6,sanitary%20at%202%C3%A8me%20quarter.
[8]https://www.planetegrandesecoles.com/pib-2023-pays-riches
[9] https://www.touteleurope.eu/economie-et-social/la-dette-publique-des-etats-de-l-union-europeenne/
[10] Atlas socio-économique des pays du monde, Larousse, 2024 édition
[11]Unless otherwise stated, the information below is taken from https://www.larousse.fr/encyclopedie/divers/Italie_activit%C3%A9s_%C3%A9conomiques/185420
[12] Atlas socio-économique des pays du monde, Larousse, 2024 Edition
[13] Larousse, Italie: population
[14] Atlas socio-économique des pays du monde, Larousse, 2024 édition
[15] This information is taken from the Global Data internal website
[16] Unless otherwise stated, the information below is taken from https://www.tresor.economie.gouv.fr/Pays/IT/des-echanges-exterieurs-excedentaires
[17]  Italy's foreign trade in 2022, Ministry of the Economy and Finance and Industrial and Digital Sovereignty
[18]https://www.btrade.ma/fr/observer-les-pays/italie/investir#:~:text=des%20informations%20compl%C3%A9mentaires-,Les%20IDE%20en%20chiffres,%C3%A0%208%2C5%20milliards%20USD.
[19] https://www.assofranchising.it/il-franchising.html#dati
[20] Unless otherwise stated, the information below is taken from https://www.assofranchising.it/chi-siamo/la-nostra-storia.html
[21] Contact details: +390229003779 / assofranchising@assofranchising.it
[22] https://www.assofranchising.it/chi-siamo/la-nostra-storia.html
[23] https://www.salonefranchisingmilano.com/
[24] The following statistics are taken from Data Assofranchising 2022 (https://www.assofranchising.it/il-franchising.html#dati).
[25] https://www.insiti.com/guides/ouvrir-une-franchise/restaurant-italien
[26] https://www.teamfrance-export.fr/infos-sectorielles/9693/9693-la-franchise-en-italie-en-2020
[27] https://www.assofranchising.it/il-franchising.html#dati
[28] https://www.toute-la-franchise.com/vie-de-la-franchise-A26541-franchises-italiennes.html
[29] https://www.toute-la-franchise.com/vie-de-la-franchise-A26541-franchises-italiennes.html
[30] Law n°129/2004
[31] https://www.franchise.org/sites/default/files/2022-09/2023%20Franchise%20-%20Italy.pdf
[32] Regulation n°115/2012 of the European Parliament and of the Council of December 12, 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters
[33] Regulation n°593/2008 of the European Parliament and of the Council of June 17, 2008 on the law applicable to contractual obligations
[34] 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards
[35] Law n°287/1990
[36] Regulation (EU) 2016/679 of the European Parliament and of the Council of April 27, 2016
[37] Régulation no. 2019/452