Franchising in Greece: the pre-contractual information pack

When turning an existing business into a franchise network, a prospective franchisee needs more than a presentation of your concept. They need information in one place about what they will receive, the obligations they will take on and any matters that remain uncertain. A well-organised pre-contractual information pack helps establish a transparent relationship and is a practical way to build trust within the franchising community.

What the Greek framework requires

Greece has no specific law requiring a standardised franchise disclosure document with prescribed content and a uniform delivery deadline. Nor is there a dedicated state register of franchisors. A business’s registration with the General Commercial Registry (GEMI) does not constitute approval of its business model or certification of its franchise offering.

This does not mean that providing information is optional or that withholding it has no consequences. Articles 197 and 198 of the Greek Civil Code govern good faith in negotiations and liability for harm caused through fault during those negotiations. Concealing material circumstances or providing inaccurate information may give rise to liability, depending on the facts.

The contractual relationship is also subject to the general rules of the Civil Code, while Law 3959/2011 and EU competition rules apply where their respective conditions are met. Trade marks are governed by Law 4679/2020 and, in the case of European Union trade marks, the relevant EU framework.

The European Code of Ethics for Franchising provides for written disclosure a reasonable time before any binding documents are signed. It is a self-regulatory framework, not Greek law. Check with a legal adviser whether and how it binds you through membership of an association or incorporation into a contract. Do not present foreign disclosure standards as requirements under Greek legislation.

Create a pack that answers specific questions

The pack need not be a sales brochure or a copy of the entire operations manual. It should give prospective franchisees enough information to assess the proposition with their own advisers. As a practical structure, include:

• Franchisor identity: company details, authorised representatives, business history and who provides each core service.
• Network status: which outlets are operating, which are company-owned and which are owned by franchisees. Clearly distinguish operating outlets from expansion plans.
• Scope of the rights granted: trade marks, know-how, systems and material restrictions on their use. State whether a trade mark is registered or its application is still pending.
• Financial obligations: initial and recurring fees, how they are calculated, their tax treatment and mandatory payments to third parties.
• Allocation of responsibilities: what you provide and what the franchisee must arrange or fund, both before and after opening.
• Contractual documents: the draft agreement and material schedules, with clearly identifiable terms covering duration, renewal and exit.

Include any material unresolved matters that could affect the relationship, such as a dispute over trade mark rights. The precise scope of the information required is assessed case by case; the list above is an organisational tool, not a statutory template.

Separate facts from estimates

For each significant piece of information, record the date it relates to and the supporting evidence. The person responsible for franchise development should be able to explain the basis of a fee, which rights the company holds and which services are already available.

Use three clear categories: verified fact, estimate and unresolved matter. For example, an agreed software fee is different from an indicative equipment quotation. Similarly, a training programme already in use is different from one still being designed.

Do not leave gaps that could be interpreted as meaning there is no cost or no restriction. Where something has not yet been determined, say so and explain when clarification is expected. If it is a critical aspect of the investment, resolve it before asking for a commitment.

Organise delivery, questions and updates

Appoint someone to take responsibility for the pack and give it a version number and date. Deliver it early enough to allow genuine time for independent review, without presenting an arbitrary deadline as a legal requirement.

Keep a record of the documents supplied, the date they were sent and written answers to material questions. An acknowledgement of receipt proves delivery; it does not prove that the information was accurate or automatically release you from liability.

For confidential know-how, arrange staged access and an appropriate confidentiality agreement. Protecting confidential information must not become a pretext for withholding material financial or contractual information. If significant new information emerges, inform the prospective franchisee and allow time for reassessment.

Practical takeaway: before you begin accepting commitments, prepare a single, evidence-backed information pack and have it legally reviewed. The aim is not a signed acknowledgement of receipt, but a genuinely informed business decision.