Buying a franchise in Belgium: check the permits

A franchise model may be a perfect fit for you, while the proposed premises are unsuitable for the planned activities. Think of a takeaway restaurant without permission for an extraction system, or a shop whose permitted commercial use does not match the business. Shared experience within the franchise community can help, but brand approval is no substitute for official permission. Before you buy, investigate whether you can legally operate the franchise at that particular location.

1. Identify which franchise activities require permission

Ask the franchisor not just for a description of the concept, but for a detailed list of activities. What will you need to prepare, store, sell, install and display outside? What opening hours and delivery times does the model require? These details determine which checks you need to make.

Then draw up an overview showing, for each activity, the relevant authority, the permission required, the applicant and the current status. Pay particular attention to:

• Planning designation and use: is the proposed activity permitted at the address, and is a change of function or use required?
• Alterations and installations: do changes to the façade, ventilation, refrigeration equipment, advertising structures or other works require a permit?
• Food-related activities: do you need registration, authorisation or approval from Belgium’s Federal Agency for the Safety of the Food Chain (FASFC)?
• Local requirements: are there requirements relating to fire safety, outdoor seating, serving alcohol, waste or the use of public space?

This is not a standard set of requirements for every business: different premises need different permissions. Procedures also differ between Flanders, Wallonia and Brussels. In Flanders, for example, planning works and certain activities with an environmental impact may fall under the integrated environmental permit, known as the omgevingsvergunning. Ask the municipality and, where necessary, a specialist adviser to establish which rules apply to your project.

2. Check evidence, not just assurances

“There used to be a restaurant here” is not proof that your new franchise can simply start trading. The previous operator may have carried out different activities, operated at a lower capacity or worked under conditions that do not suit your concept.

Ask for copies of existing permits, approved plans and relevant inspection or fire safety reports. Compare these with both the actual layout and the franchisor’s proposed design. A permit for a particular installation does not automatically cover more powerful equipment or a different production activity.

For each document, check:

• Which address, areas and activities does it cover?
• In whose name is the permission issued?
• Are there conditions, restrictions or an expiry date?
• Does a new operator need to submit a notification, arrange a transfer or make a fresh application?
• Are there any known breaches or outstanding alterations?

Do not assume that a permit automatically follows the business if it relocates, or transfers when the business is acquired. The consequences depend on the type of permission and the structure of the transaction. Have the relevant authority confirm the position. Keep written replies in your purchase file and distinguish informal guidance on feasibility from a formal decision.

3. Agree who bears the permit risk before committing

Belgium has no separate, comprehensive franchise law. However, Book X, Title 2 of the Belgian Code of Economic Law governs pre-contractual information for commercial cooperation agreements, including franchises. Under Article X.27, you must receive the draft agreement and the pre-contractual information document at least one month before entering into the agreement. General contract law and the relevant regional and local permit rules also apply, among other provisions.

This disclosure obligation does not mean that the authorities have approved the premises. Use the preparation period to establish who will handle applications and who will pay for any necessary alterations. Allocating tasks in the contract does not remove any statutory responsibilities you may have as the operator.

Ask your legal adviser to draft an appropriate permit condition. It should specify not only which permissions are needed, but also what outcome is acceptable to you. Permission with heavily restricted opening hours, for example, may not be sufficient for the intended business.

Also discuss a final deadline, the efforts required of both parties, and the consequences of refusal or delay. What happens to money already paid and costs already incurred? When do the contract term and recurring fees begin? Avoid leaving these questions unanswered until an application runs into difficulty.

4. Turn your checks into a purchase decision

Ask your architect, technical adviser or permits specialist to translate the remaining uncertainties into specific measures. The franchise model may require a new extraction duct, additional soundproofing or modified access. Obtain quotes and factor the timescales into your opening schedule.

Use three decision categories: demonstrably compliant, resolvable subject to clear conditions, and not yet verified. For each outstanding issue, record who will take action, what evidence is missing and when you will make a decision. An acknowledgement that an application has been received is not a permit.

If an essential part of the concept is not permitted, first establish whether the franchisor will agree in writing to a workable alternative. If not, choosing another location may be wiser than proceeding with an uncertain purchase.

Practical conclusion: do not buy on the strength of assurances that the permits “will be fine”. Base your decision on verifiable documents, a workable fit-out and clear agreements on refusal, delays and costs.