The Irish franchising sector
has been increasing at a steady rate in the last decade, employing approximately 275,000 persons. At the moment, the franchising sector
is represented by 42,000 retail and wholesale businesses. Since 2010, this sector increased by 20% and the largest market share of the franchising industry
is represented by food and beverages businesses
A franchsing business in Ireland
is incorporated through a franchising agreement
, a legal document in which the franchisor
and the franchisee
establish the manner in which the company will carry its operations on the country’s territory (depending on the provisions of the agreement
, the franchisee
may set up its business activities only in a specific region of the country). Our team of lawyers in Ireland
can assist investors with legal advice on the main procedures involved in this case.
The Irish franchise agreement
In order to set up a company in Ireland
registered as a franchise business
, it is mandatory to sign a franchise agreement
. Although there is no statutory rule of law which regulates the franchise agreement
, the document must contain compulsory provisions
regarding the rights and the obligations of the parties, as well as the manner in which the franchise activities
can be developed here.
One of the main requirements established in this sense refers to the business experience
of the franchisor
(the legal entity
which grants the right to another party to start a franchise business
). Under the Irish legislation
, the franchisor
must have an experience of minimum one year
in conducting a profitable company
Another clause that should be included in the document
refers to the duration of the contract
(usually signed for minimum 5 years
) and the region
in which the intellectual property rights
are granted to a franchisee
. Our team of Irish lawyers
can further information on the requirements referring to intellectual property
in this country.
The franchisor may also impose a performance clause, in which the parties may establish a minimum amount of sales on a yearly basis.
The advantages of a franchise business in Ireland
Setting up a business
through a franchise agreement
can be a great idea, as the company’s representative is no longer required to find a new business concept
. The franchise business
will be able to use the same business model provided by the franchisor
will receive intensive trainings
regarding all aspects of the company.
Investors can contact our law firm in Ireland
for advice on this subject and in-depth information on the documents that have to be submitted with local institutions.