Franchising Inside Turkey

Outside investors who want to begin commerce in Turkey can use franchising in Turkey and select among the numerous productive businesses the nation offers. From retail shops to travel organizations or other sorts of businesses in other divisions, one can set up a business from zero or enter a franchise agreement with a famous company.

Franchising is 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 need to set up an establishment in Turkey must comply with a number of pre-requisites imposed by the Contract Law. Franchises must also comply with the Consumer Protection Act and with the Unfair Competition Law.

World Legal Advocates can assist you in understanding the legislation imposed to franchise businesses.

Types of franchises in Turkey

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Amanda Seyfried
Founder & CEO, Arcade Systems

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 establishment the business entrepreneur chooses to do 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.

We can make your life easier and assist you with the registration of the entity when creating a franchise business.

The franchise agreement in Turkey

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 commerce 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 contact us. Our team of experts can also help with the preparation of the franchise agreement.

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