Franchising in Greece: keeping supplies flowing

A business may supply one outlet very effectively, yet struggle when it needs to serve several locations. Before bringing franchisees into your network, you need a supply system that does not rely on personal favours or emergency deliveries by the founder. The aim is not simply to secure the lowest purchase price: it is to ensure consistent availability, predictable deliveries and clear responsibility when something fails to arrive on time.

1. Map out the items you cannot do without

Start with the products, consumables and equipment without which an outlet cannot deliver the promised customer experience. Distinguish essential items from those that can be replaced without affecting quality. Specialist packaging, for example, may be harder to replenish than a standard cleaning product.

For each critical item, create a brief record covering:

• the required specification and approved supplier,
• the usual delivery lead time and minimum order,
• storage conditions and shelf life, where applicable,
• the area served and any transport restrictions,
• the backup option in the event of a shortage.

Do not assume that the terms currently offered to your company-owned outlet will automatically apply to independent franchisees. Obtain written confirmation of the supplier’s capacity to serve additional locations, pricing and credit terms. Pay particular attention to deliveries to islands or remote areas: an arrangement that works close to the warehouse may not be viable elsewhere.

2. Test the delivery process through to the outlet

Your supply trial should simulate how a future franchisee will operate. Place orders through the intended process, apply the agreed deadlines and record what actually arrives. Avoid informal intervention by the founder, as this masks weaknesses that will emerge after expansion.

Measure not just the product price but the total cost through to receipt: transport charges, minimum quantities, damage, storage space and money tied up in stock. A discount may prove poor value if it requires quantities that cannot be sold or used in time.

Test an adverse scenario too: a delay at a key supplier, an incorrect shipment or a temporary shortage. Who informs the franchisee? Who approves a substitute? Who pays for emergency transport?

The outcome needs to be a workable plan, not an assurance that “we’ll find a solution”. If there is no reliable alternative for a critical item, consider safety stock or a second source of supply, taking account of demand and the product’s shelf life.

3. Align purchasing rules with the franchise agreement

Greece has no dedicated law comprehensively governing franchising as a distinct type of contract. There is no specific franchise register or mandatory, standardised pre-contractual disclosure document. This does not mean there are no rules: the general provisions of the Greek Civil Code apply, particularly those concerning good faith and pre-contractual liability, alongside Greek and EU competition law.

Relevant rules for purchasing obligations include Greek Law 3959/2011, Article 101 of the Treaty on the Functioning of the European Union and Regulation (EU) 2022/720 on certain vertical agreements. The Regulation does not automatically permit every restriction: its application depends on specific conditions. Requirements to purchase from a particular source, and the duration of those requirements, need specialist legal review.

The agreement should clarify which items must be purchased from designated sources, which simply need to meet technical specifications and how an alternative supplier can be approved. It should also explain who sells and invoices for the goods, how price changes are communicated and what procedure applies to defective goods or shortages. Do not allow material financial commitments to appear for the first time in an order placed after the agreement has been signed.

4. Assign responsibility and establish an emergency procedure

Appoint a designated person responsible for supplies and provide a single point of contact for reporting problems. Franchisees need to know where to report a shortage, what information to provide and who decides the next step. The procedure must also cover cases where the supplier deals directly with the outlet.

Keep records of delays, incomplete deliveries, returns and emergency purchases. Look for recurring causes rather than treating every incident as an isolated event. If you change suppliers, check samples, compatibility and actual delivery lead times before requiring every outlet to make the switch.

Practical takeaway: before signing your first franchise agreement, complete a critical-items checklist, run a delivery trial and put a written shortage-response procedure in place. Expansion is safer when every franchisee knows what to order, whom to order it from and what happens if a delivery fails.