Franchising in Greece: reliable sales reporting

When turning an existing business into a franchise network, the question ‘How much did we sell?’ needs a consistent, verifiable answer. Different approaches to returns, discounts or orders placed through platforms can lead to disagreements even between partners acting in good faith. In franchising, reliable sales reports underpin trust, enable meaningful support and reduce disputes over turnover-based charges.

1. Define exactly what each report records

Before choosing software, create a short data dictionary. Each field should have a specific meaning, source and calculation rule. A label such as ‘monthly sales’ is not enough: it might include VAT, show receipts rather than sales, or deduct third-party commissions.

Record at least:

• Sales before and after discounts, with VAT shown separately.
• Cancellations, returns and related credit notes.
• Transactions by channel, such as in-store sales, online orders and delivery platforms.
• How advance payments, gift cards and redemptions are treated, to avoid double counting.
• The date and reporting period assigned to each transaction.

For example, the net amount a platform pays into a bank account does not necessarily equal the value of sales: commissions or other deductions may already have been taken. The report must distinguish between these amounts.

Do not treat sales, receipts and the contractual basis for calculating a charge as interchangeable. The accountant checks the tax and accounting treatment, while the contract clarifies the basis the parties have agreed for their obligations to one another.

2. Create a reconciliation process, not just a submission process

A manually completed spreadsheet may be useful initially, but it is not enough on its own to ensure reliability. Every total must be traceable to an identifiable source: a sales system, supporting documents, platform reports or accounting entries.

Establish a consistent period-end process:

1. The franchisee exports the report using the agreed parameters.
2. The outlet manager checks unusual cancellations, returns and gaps.
3. The figures are reconciled with the relevant accounting records, and timing differences are explained.
4. The report is submitted, with an audit trail retained for any subsequent corrections.

Specify who submits reports, who checks them and who approves corrections. If an amount is changed retrospectively, the reason, date and person making the change must be visible.

Test the process in your own business before requiring franchisees to use it. Use real examples of returns, delayed settlements and connection outages. The aim is not an impressive chart, but a report that can be reproduced and explained.

3. Link reporting to clear contractual rules

Greece has no specific law comprehensively governing franchising as a distinct type of contract. There is no dedicated franchise register or mandatory, standardised pre-contractual disclosure document. This does not mean there are no obligations: the general provisions of the Greek Civil Code on contracts and obligations apply, alongside other applicable rules of Greek and EU law.

In particular, Articles 197–198 of the Civil Code address good faith during negotiations and pre-contractual liability. You should therefore disclose material reporting requirements, necessary equipment and known associated costs before the agreement is signed. Do not present a demanding systems integration requirement as a minor technical detail.

The agreement should specify reporting frequency, deadlines, access rights and how discrepancies will be handled. Where reports underpin recurring charges, they need a clear link to the corresponding contractual definition of sales.

A technical appendix can describe file formats and export instructions. However, changes to technical instructions must not silently alter the agreed financial basis. Also provide a process for disputing and correcting figures before treating an unexplained discrepancy as concealed sales.

4. Request only the data you need

Monitoring sales does not automatically require customer names, telephone numbers or full employee details. Start with aggregated data and document any need for access to more detailed information.

Where personal data is processed, the General Data Protection Regulation and Greek Law 4624/2019 apply. The roles of the franchisor, franchisee and software provider are determined by the processing they actually carry out, not simply by the labels used in the agreement.

Set up individual user accounts, tiered access permissions and activity logs. Avoid shared passwords and uncontrolled file sharing through personal email accounts. Define retention periods for each category of data, taking statutory record-keeping obligations into account.

Practical takeaway: before bringing your first franchisee on board, prepare a data dictionary, a tested report and a corrections process. Ask an accountant and a lawyer to check that the figures, contractual definitions and access rights are consistent with one another.