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Articles

Set Up a Franchise Business in Ireland

Updated on Thursday 14th December 2017

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Set-Up-a-Franchise-Business-in-Ireland.jpgFranchising industry in Ireland is mostly represented by international franchise companies. At the level of 2015, 44% of the franchise businesses operating here were registered in Ireland. In order to open a company in Ireland that operates as a franchising business, it is necessary to sign a franchise agreement between the franchisor (the person or the legal entity that allows the usage of the company’s intellectual property) and the franchisee.
 
Most of the international franchising businesses established here are conducted through a master franchise agreement and our team of specialists in company formation in Ireland can advise on its provisions. 
 

What is a franchise agreement? 

 
A franchise agreement designates the fact that a party offers the right to use the company’s identity and business model to another party, following the provisions established in the contract
 
Businessmen interested in starting the procedure of company formation in Ireland through a franchise agreement should know that the franchisor has the legal right to impose various controls on the manner in which the franchise is carried out. At the same time, the franchise agreement should stipulate the region in which the franchisor can conduct the respective activities and our team of agents in company registration in Ireland can further advise on this matter. 
 

Main stipulations of an Irish franchise agreement  

 
Although the franchising industry is not regulated by a specific rule of law, franchise agreements should comply with specific regulations. The agreement is a legally binding document in which the parties establish the rights and the obligations deriving from their business partnership
 
An essential aspect that should be included in the franchise agreement is the duration of the contract (generally signed for a period of five years). It should also include a performance clause, which refers to the minimum value of sales the franchisee should achieve in a financial year. At the same time, the franchisor has to offer support and training to the company’s employees and to ensure the supply of goods/services
 
There are other aspects that should be included in a franchise agreement and investors are invited to contact our team of consultants for in-depth advice on this matter, as well as on other relevant matters that should be taken into consideration when starting a franchise business in Ireland
 

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