Franchising, also called commercial affiliation, is a collaboration formula between entrepreneurs for the distribution of services and / or goods, suitable for those who want to start a new business by taking advantage of formats already tested and established on the market.

Franchising is in fact a collaboration agreement that finds on the one hand a company with a consolidated commercial formula (franchisor, or franchisor) and on the other a company or a single entrepreneur (affiliate, or franchisee) who adheres to this formula, remaining however independent entrepreneur.

The parent company, which may be a manufacturer or distributor of products or services of a specific brand or brand, grants the affiliate, usually an independent reseller, the right to market its products and / or services using the brand name. ‘franchisor as well as offering technical assistance and advice and granting know-how on proven working methods. In return, the franchisee undertakes to comply with standards and management / production models established by the franchisor, actively contributing to the increase in brand awareness and the success of the entire network.

Generally, in exchange for the services offered, both initial and periodic, one-off payments (such as the entrance fee) or periodic payments (such as royalties on turnover or contributions for marketing campaigns) may be requested by the franchisor.

For both parties involved, the legal obligation to comply with the contractual rules and conditions governing the relationship always applies.

In the Italian economic market, franchising is regulated by Law no. 129.

The regulations, laws and regulations in force regarding commercial affiliation do not present stringent limitations or standardized conditions that are always valid. Therefore, the franchising contract can present very different conditions, obligations and advantages depending on what the objectives and standards of the parent company (franchisor) are.