Establishing a franchise system in Turkey allows international brands to expand rapidly. While Turkish law does not have a dedicated Franchise Act, these agreements are governed by the Turkish Obligations Code (TCO).


1. Essential Clauses in Franchise Contracts

  • IP Licensing: Clearly defining the right to use trademarks, trade secrets, and operational manuals.
  • Exclusivity & Territory: Outlining the geographical area granted to the franchisee.
  • Fees & Royalties: Setting the initial franchise fee and monthly royalties.

2. Antitrust Compliance

Franchise networks must comply with the Turkish Competition Law (Law No. 4054). Block exemption regulations protect franchisees from anti-competitive vertical restraints.



Frequently Asked Questions (FAQ)

How are Franchise Agreements Regulated in Turkey?

  1. Obligations Code: Regulated under general contract law.
  2. Competition Rules: Must comply with anti-trust block exemptions.
  3. IP Rights: Must explicitly license trademark and trade secret usage.