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Articles

Set Up a Franchise Business in Turkey

Updated on Wednesday 13th December 2017

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Set-up-a-franchise-business-in-TurkeyDuring the last several years, most countries have worked towards open borders which facilitate the expansion of foreign businesses outside their home countries. Turkey is one of the most open countries from this point of view which has enabled local enterprisers to conclude contracts with renowned brands from all over the world and distributing their services or goods here. These types of businesses are called franchises and are regulated by the Code of Obligations in Turkey. Franchises also fall under the Turkish Commercial Code.

Both local and international franchises are popular in Turkey. Foreign investors who want to create franchise businesses here can receive assistance from our Turkish company formation advisors.

What is a Turkish franchise?

Opening a franchise business in Turkey implies two major parts: the franchisor and the franchisee. The franchisor is the parent-company which agrees to a second party, called the franchisee, to distribute its goods or services, or represent it in another country – Turkey, in this case.

The franchise is created through a franchise agreement signed by the two parties involved. It should be noted that there is no authority supervising the activities of franchise businesses in Turkey, however the country has the National Franchise Association which is part of the European Franchise Federation and which offers some guidelines to this type of ventures.

Our company formation consultants in Turkey can explain the process of creating a franchise.

Steps for registering a franchise in Turkey

In order to set up a franchise business in Turkey, the local enterpriser must first create a company and register it with the Trade Register. The usual steps for incorporating the business must be followed and after that, the new company can sign the franchise agreement which provides for the rights and obligations of both franchisor and franchisee with the respect to how to carry out the activities. It should be noted that the franchisee must respect certain requirements imposed by the franchisor. However, the franchisor must also put at the disposal of the franchisee the products and offer the necessary training for the staff.

For assistance in setting up a franchise business in Turkey, please contact our local company registration agents.

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