Franchising in Greece: administrative readiness before opening

When you turn an existing business into a franchise network, your own administrative arrangements do not automatically extend to the franchisee. The new operator needs its own filings and registrations and, depending on its activities, must complete the procedures required to operate legally. In franchising, a clear administrative readiness plan prevents a common mistake: announcing an opening date simply because the business has been registered.

1. Separate business formation from legal operation

Greece has no dedicated law providing a comprehensive framework for franchising, nor a special register in which businesses must enrol solely because they are franchisors or franchisees. This does not remove the general corporate, tax, social security and other obligations applicable to each business’s activities.

The general provisions of the Greek Civil Code govern the contractual relationship. During negotiations, Articles 197–198 on good faith and pre-contractual liability are particularly relevant. There is no specific law requiring pre-contractual disclosure for franchising. You should therefore not describe the administrative process to a prospective franchisee as ‘a mere formality’ if you know that essential requirements remain outstanding.

Registration with the General Commercial Registry (GEMI), where required, relates to the business; it does not certify the franchise system. Likewise, obtaining a Greek tax identification number (AFM) or a certificate of commencement of business does not, on its own, establish that the outlet can welcome customers.

A useful distinction: create two separate checklists: one for business formation or tax registration, and another for the requirements for operating legally. The second should be verified by the appropriate professionals, based on the specific activity and premises.

2. Compile the information before applications begin

For sole traders, the digital service on gov.gr has specific eligibility requirements. It is not a route available to every applicant. The accountant should first check whether the franchisee can use it or needs to follow a different procedure.

The information required includes an active Greek tax identification number, details of the business address, business activities and tax arrangements. For owner-occupied premises, the Property Identification Number (ATAK) is used; for rented premises or premises made available for use, the relevant details from the electronic tenancy declaration are required. Even an omission such as a missing postcode in that declaration can prevent the online process from being completed.

A shared preparation checklist could include:

• the operator’s details and the accountant’s contact information,
• the exact business address and evidence of the right to use the premises,
• a description of all activities to be carried out,
• confirmation of the appropriate Business Activity Codes (KAD) by the accountant,
• the authorisations required for third parties to act on the operator’s behalf,
• a list of the final supporting documents to be supplied.

Do not simply copy the pilot business’s activity codes. The franchisee may offer a different mix of products and services. Nor should you ask for personal Taxisnet login credentials to be stored in the shared folder: use the prescribed authorisation procedures instead.

3. Assign each task to a named person

For the company types it supports, the electronic One-Stop Service handles incorporation and associated registrations through linked public-sector systems. This route should not be confused with registering as a sole trader, nor assumed to cover every subsequent obligation.

When registering a sole trader online, the final evidence is the Certificate of Commencement of Business, not merely an application number. This is followed by the prescribed registration or re-registration procedure for self-employed people with e-EFKA, Greece’s social security body. The franchisee and their accountant should confirm that every relevant step has been completed.

Use a table with five fields: task, person responsible, prerequisite, evidence, status. The franchisee and their advisers are responsible for the business’s filings. The franchisor supplies information about the operating model in good time and monitors the outstanding tasks agreed between the parties. It does not replace the accountant, lawyer or engineer.

Also clarify who pays for the relevant professional services. A vague promise that ‘we will take care of the opening’ creates expectations that may not reflect the actual division of responsibilities.

4. Set a final review before announcing a date

Before publicly committing to an opening date, review the supporting documents. Check whether the corporate and tax details match, whether the required operating procedures have been completed, and whether any outstanding matters legally prevent the outlet from opening.

Do not rely on verbal assurances that ‘the application is progressing’. Record what has been completed and what remains outstanding, with confirmation from the relevant professional. The franchisor’s internal approval to begin trading under its brand does not replace an administrative licence, notification or any other legal requirement.

Practical takeaway: before organising the opening, organise the evidence. A shared responsibilities table and two separate checks — one for business registration and one for legal operation — make the first franchise outlet’s opening more predictable and the next one easier.