Franchising in Greece: approving a store location

The success of your original business does not mean that the same store will perform equally well on every street. When building a franchise network in Greece, you need a defined site approval process, not just good instincts. Its purpose is to avoid unsuitable leases and ensure that both franchisor and franchisee know what has been checked, what remains uncertain and who makes the decision before any commitments are made.

1. Turn your experience into site selection criteria

Start with your existing store, but do not simply copy its features. Separate what is essential to its operation from what merely happened to coincide with its success. A wide frontage may be useful, while the ability to install particular equipment may be non-negotiable.

Prepare an assessment form with three groups of criteria:

• Commercial suitability: the local customer base, visibility, access, neighbouring uses and competition.
• Operational suitability: layout, storage, deliveries, infrastructure and the ability to accommodate the intended workflow.
• Property-related costs: rent, service charges, necessary alterations and other costs associated with the premises.

Define which findings mean a site must be rejected and which allow conditional approval. Do not let a high overall score conceal a technical constraint that rules the site out. For example, heavy footfall cannot compensate for being unable to install essential infrastructure lawfully.

For each criterion, also record how it is verified: through a site visit, documentation, a technical inspection or observation. This allows two different team members to assess the same property on a consistent basis.

2. Check how the premises will actually work, not just the address

A location may look suitable on a map but fall short in day-to-day operation. Visit on different days and at times relevant to the business's opening hours. Record not only how many people pass by, but whether they are likely to need what you offer.

Examine the practical details: where customers enter, where suppliers can stop to unload, whether anything obstructs visibility and how order collections will be handled. If the business model relies on delivery, access and service times may matter more than an impressive shopfront.

At the same time, ask a suitably qualified engineer to assess whether the premises are suitable for the intended activity and what alterations are needed. The franchisor's commercial approval does not replace technical checks or the required administrative procedures.

Create a file containing photographs, a floor plan, observations and estimates for the work required. Clearly distinguish verified facts from assumptions. Information that ‘a major development is planned opposite’ should not be treated as a guaranteed source of future customers.

3. Clarify what approval means in Greece

Greece has no dedicated law comprehensively regulating franchising as a distinct type of contract. There is no specific franchise register or legally prescribed pre-contractual disclosure document. The applicable framework includes the general provisions of the Greek Civil Code governing contracts, obligations and good faith during negotiations and the performance of a contract.

The site approval process therefore needs to be clearly set out in the contract. Specify who proposes properties, who gathers supporting documents, who pays for checks and who has authority to issue the final written decision. Also define when an application file is considered complete and when a fresh assessment is required.

The approval should explain its scope: it confirms compatibility with the business model, rather than guaranteeing profitability. However, this clarification does not negate any misleading assurances or liability that may arise from the parties' actual conduct.

A lawyer should review the franchise agreement and proposed lease together. Pay particular attention to their duration, permitted use, alterations and signage, so that the two agreements do not create conflicting obligations.

4. Tie the final decision to specific conditions

Avoid a vague message saying ‘the site has been approved’. Use a short decision document identifying the property, the evidence reviewed, outstanding matters and any conditions. Reassess the decision if the rent, available floor area or fit-out costs change materially.

The safest sequence is an initial assessment, followed by the necessary checks, and only then a binding commitment. Where a reservation or another agreement with the landlord is needed earlier, seek legal advice on drafting the relevant terms and on what happens if the property is rejected.

Keep records of rejected sites too. The reasons for rejection will help you refine your criteria and avoid spending time on the same dead ends.

Practical takeaway: before your first franchisee signs a lease, prepare an assessment form, an allocation of responsibilities and a written approval template. Choosing the right location requires evidence, not just enthusiasm.