Foreign enterprisers who want to start doing business in Turkey can choose among the many prolific industries the country offers. From retail shops to travel agencies or other types of businesses in other sectors, one can set up a business from zero or enter a franchise agreement with a famous company.
Franchising in not new in Turkey, however, this system started developing a few years back when the number of trademarks registered for franchising purposes rose considerably. Those who want to set up a franchise business in Turkey must comply with a few requirements imposed by the Contract Law. Franchises must also comply with the Consumer Protection Act and with the Unfair Competition Law.
Our lawyers in Turkey can explain the legislation imposed to franchise businesses.
There are two main types of franchise businesses one can establish in Turkey. The first one refers to distributing the products or services of another company – the franchisor, while the second one refers to selling the goods or services under the trademark of the franchisor.
No matter the type of franchise business an entrepreneur decides to register in Turkey, it is mandatory for him or her to have their own company through which the business activity is carried out. For this purpose, one is advised to register as a sole trader or to incorporate a company in Turkey, depending on the size of the business.
Our law firm in Turkey can assist with the registration of an entity when creating a franchise business.
Once the Turkish company is registered it can sign a franchise agreement with the franchisor. The contract must be drafted in Turkish, according to the Contract Law. At this point the Turkish business becomes the franchisee.
With respect to the franchise agreement, it can be signed for a definite or indefinite period of time and must contain information on the rights and obligations of both franchisor and franchisee. Turkish companies setting up franchise businesses can enter the National Franchise Association.
If you want to open a franchise business in Turkey and need assistance, please feel free to contact us. Our Turkish lawyers can also help with the preparation of the franchise agreement.