Franchising: managing franchisees’ permits and compliance

When you turn an existing business into a franchise network, the administrative filings for your own premises do not automatically cover your franchisees. Each new business must check the requirements that apply to it and to its planned activities. The franchisor therefore needs a repeatable process: not to take the place of professional advisers or the relevant authorities, but to avoid announcing openings before the necessary formalities have been completed.

1. Distinguish the franchise agreement from permission to open

Italian Law No. 129 of 6 May 2004 governs franchising in Italy. Among other things, it requires the agreement to be in writing, failing which it is void, and requires the franchisor to have tested its business format on the market. Article 4 also requires a complete copy of the agreement and the prescribed annexes to be provided at least thirty days before signing, subject to the specific exceptions set out in the law.

These obligations concern the franchise relationship: they do not authorise the business to operate. Signing the agreement and obtaining permission to use the brand do not replace the commercial, health, building or safety formalities applicable to each new opening.

The main administrative point of contact is the Sportello unico per le attività produttive (SUAP), Italy’s one-stop shop for business activities, governed by Presidential Decree No. 160/2010. The SCIA (Segnalazione certificata di inizio attività), a certified notification of commencement of business activity, is governed by Article 19 of Law No. 241/1990; Legislative Decree No. 222/2016 identifies the administrative procedures applicable to many activities.

However, not every opening follows the same route. Notifications, a SCIA, authorisations or several coordinated formalities may be required. Avoid statements such as ‘all you need to open is a SCIA’: checks must reflect the actual activity and the rules applicable in the location concerned.

2. Build a compliance matrix for your business model

Start with your existing business, gathering the filings and paperwork that allowed it to open. Use these as working material, not as a definitive checklist to copy: the rules may have changed, or the circumstances of the new opening may be different.

First, describe what the franchisee will actually do. Selling packaged products, preparing food, serving food and drink, home delivery and personal services may each require different checks. Even an ancillary service can change the obligations that apply.

For each planned operating model, prepare a checklist covering:

• the activity and permitted ancillary services;
• the formality to be checked and the circumstances that trigger it;
• the relevant authority or professional adviser;
• the person responsible for the filing or procedure;
• the document that demonstrates its status;
• any deadlines, renewals or subsequent notifications.

Distinguish generally recurring obligations, such as obtaining an Italian VAT number and registering with the Business Register, from those that depend on specific circumstances. Professional qualification requirements, health notifications, fire prevention, accessibility and workplace safety must be assessed case by case.

Add a column for local checks. A useful matrix does not promise uniformity where none exists: it identifies which information must be confirmed with the SUAP and the appointed advisers.

3. Assign responsibilities and specify documentary evidence

The franchisee is an independent business operator. The process must make clear which formalities are their responsibility, which tasks the franchisor coordinates and which checks require a suitably qualified technical specialist or another professional.

Describe any administrative support included in the agreement precisely. ‘Opening support’ is too vague unless it explains who prepares the documents, who submits the filings and who pays the associated costs. Contractual allocations of responsibility cannot, however, remove responsibilities imposed by law.

Create a digital file for each opening. Do not simply mark a task as ‘done’: record its subject, date, official reference number, any conditions and any documents still outstanding. An acknowledgement of submission does not always mean that the entire authorisation process is complete.

For example, if a franchisee plans to add food preparation to a retail-only operation, the process must trigger a fresh check before the service is introduced. The fact that other outlets offer it does not prove that this particular outlet already meets all the requirements.

Keep only the data needed, restrict access to authorised people and set retention periods.

4. Introduce a pre-opening document review

Separate brand standards checks from administrative compliance checks. The right fittings, installed signage and staff ready to work do not prove that the business can lawfully start operating.

Before confirming the opening, arrange a review with the franchisee and the professionals involved. Every item must be marked as complete, not applicable with a reason, or still outstanding. Where prior approval is required, submitting an application alone is not enough.

Any internal go-ahead from the franchisor does not replace the formal decisions or approvals of the relevant authorities. Its purpose is to prevent marketing announcements from getting ahead of essential checks.

Finally, require the file to be updated whenever there is a relocation, expansion, new service or other significant change. A reliable franchise network maintains this discipline after opening day, too.

Action to take now: turn the paperwork for your own premises into a compliance matrix, have it checked by the appropriate professionals, and assign a responsible person and documentary evidence to every requirement.