Franchise agreements: language and consistency across documents

When you turn an existing business into a franchise network, the agreement is rarely the only document setting out the relationship. There are financial schedules, technical specifications and, potentially, translations for prospective franchisees who cannot read Greek. If these documents use different terms for the same obligation, disputes can arise before the first outlet even opens. Within a franchise network, a shared understanding requires well-organised documentation, not just signatures.

What Greek law requires on language

Greece has no specific law providing a comprehensive framework for franchise agreements, nor is there a mandatory government-issued model agreement. There is also no franchise-specific statutory pre-contractual disclosure regime, prescribed disclosure document or dedicated register of franchisors. This does not remove the ordinary corporate, tax and licensing obligations that apply to each business.

There is no specific requirement for franchise agreements and disclosure documents to be drafted in Greek, provided both parties understand the language used. However, this flexibility does not make it wise to sign a document that a prospective franchisee cannot meaningfully read.

The general provisions of the Greek Civil Code apply. In particular, Articles 197–198 concern good faith in negotiations and pre-contractual liability. Articles 173 and 200 guide the interpretation of declarations of intent and contracts, while Article 288 concerns performance in accordance with good faith. Mandatory rules of Greek and EU law, such as competition rules, also apply. A perfectly worded clause does not become lawful simply because it is clear.

Agree on terminology before the final draft

Before giving the documents to your first prospective franchisee, compile the terms that affect payments, deadlines and responsibilities. Ask the legal drafter and the person responsible for operations to confirm that each term has the same meaning throughout.

A practical terminology table could include:

• Contracting parties: consistent use of ‘franchisor’ and ‘franchisee’, linked to their full registered company names.
• Key dates: a clear distinction between signing, the agreement taking effect, handover of the premises and the start of trading.
• Financial calculation bases: precise definitions of terms such as ‘sales’ or ‘turnover’ where they are used to calculate a contractual charge.
• Referenced documents: the exact title, date and version of every schedule incorporated into the agreement.

For example, if an obligation begins ‘on commencement’, it must be clear what is commencing. Otherwise, the franchisor may calculate the period from signing, while the franchisee calculates it from the first sale.

Also avoid switching between everyday and legal language without explanation. The phrase ‘our partner’ may be appropriate in communications across the network, but contractual obligations must make clear exactly which person or entity is bound.

Define how the agreement and its schedules fit together

Create a list of all the documents that form part of the agreement. For each one, record its subject matter, current version and method of delivery. The franchisee should be able to identify exactly what they are accepting without searching for scattered files in old emails.

With a lawyer’s help, establish an order of precedence in the event of a conflict. For example, a specific financial schedule may set out the detail of a general provision in the agreement. This needs to be expressly stated, rather than relying on an assumption that ‘the latest file takes precedence’.

Also distinguish operational instructions from changes to the commercial agreement. A new instruction on product displays is not the same as a change to the basis for calculating a charge. Specify which changes require a signed amendment and which can be made through the agreed notification procedure. Do not treat a reference to a manual that is updated periodically as an unlimited right to change obligations.

Check translations against the final version

If you use two languages, decide whether the parties will sign a bilingual document or whether the translation is intended solely to aid understanding. State clearly which language version takes precedence if there is a discrepancy. This clause is no substitute for an accurate translation and does not remedy misleading explanations.

Commission a professional translator with legal experience and arrange a review by a lawyer who understands the transaction. Machine translation may help with preparation, but it should not be the sole means of checking binding terms.

Before signing, cross-check amounts, dates, definitions, cross-references and schedule numbering. Record any clarifications and incorporate agreed changes into the final text. Keep a complete, identical set of documents for each party, allowing time for independent legal review.

Practical takeaway: before seeking signatures, check that you have consistent terminology, a clearly identifiable final version and a clear way to resolve contradictions. This helps the relationship begin with a shared understanding of each party’s commitments.