Start a Franchise Business in Portugal
Start a Franchise Business in PortugalUpdated on Friday 15th December 2017
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Starting is franchise business in Portugal can be a suitable business choice for many investors. The main advantage is that the one who acquires the right to build a chain store in Portugal will also receive the business model and brand, under certain conditions. This agreement is mutually beneficial for the franchisor, the business who sells the usage rights, for it will have the chance to expand on the Portuguese market.
Investors who want to start a franchise business in Portugal can talk to one of our local lawyers in Portugal who can provide complete details on this business concept.
Franchising in Portugal
Franchising in Portugal can be done locally through master franchise agreements. Direct franchising is the most popular method for Portuguese companies to expand on the local market. There are no special restrictions in place for local franchising and one of our lawyers in Portugal can give you complete details on how to use this method.
Portuguese companies can also franchise internationally without restrictions. Domestic brands can expand outside of Portugal using this method.
What to consider when opening a franchise business in Portugal
Franchising is regulated through a special franchise agreement. This document is drawn up according to the provisions of the Civil Code that apply in general to contracts. While there are no specific local laws that relate to franchising in itself, both parties need to observe the rights, duties and liabilities that arise as a result of the contractual relationship.
The franchisee undertakes to act as the distributor or affiliate of the franchisor and sell the goods/provide the services to the public according to the business model. The franchisor undertakes to provide the franchisee with the needed know-how and business support.
When entering into a franchising agreement, both parties should enter in good faith. One of our attorneys in Portugal can give you complete details on the obligations of the franchisee and the obligations of the franchisor.
You can contact our law firm in Portugal for complete details on how to start a franchise business in the country.