Franchise Agreement in Greece: Template, Key Clauses and Local Law (2026)

A franchise agreement in Greece lets a franchisee run a business under the franchisor's brand, system and know-how in exchange for fees. Greece has no franchise-specific statute, so the contract itself, the Civil Code and competition law decide what is enforceable. That makes careful drafting more important, not less. This guide explains the Greek legal framework, the clauses a franchise agreement should carry, and a template skeleton. It is general information, not legal advice. ## What law governs a franchise agreement in Greece? There is no dedicated franchise law in Greece. A franchise agreement is governed by: - General contract law in the Greek Civil Code. Good-faith duties apply both during negotiations (Articles 197 to 198) and in performance (Article 288). The rules on error and fraud (Articles 140 to 149) let a party unwind a contract and claim damages if it was misled.

• Competition law, mainly Law 3959/2011 on the protection of free competition. Articles 1 and 2 of that Act mirror Articles 101 and 102 of the Treaty on the Functioning of the European Union for national cases. A franchise is a vertical agreement, so restraints such as exclusive territories, non-compete and resale pricing are assessed under these rules. Law 3959/2011 was amended by Law 4886/2022.
• EU vertical rules. Where a franchise affects trade between EU states, the EU framework on vertical agreements applies alongside Greek law, and the EU Vertical Block Exemption Regulation (EU) 2022/720 can bring compliant restraints within a safe harbour.
• The Hellenic Competition Commission enforces Law 3959/2011 and has applied it to franchise systems. An agreement that restricts competition can be void regardless of the law the parties chose for the contract. There are no franchise-specific pre-contractual disclosure requirements under Greek law, unlike some other countries. The good-faith duty in negotiations is what protects a prospective franchisee from being misled. ## Is a franchise agreement enforceable in Greece? Yes, as an ordinary commercial contract, with two main limits: - Competition law can strike down clauses. A restraint that breaches Law 3959/2011 (or the EU rules, where trade between states is affected) is null, and the nullity applies regardless of the contract's chosen governing law.
• Good faith constrains conduct. A franchisor that misleads during negotiations, or exercises a discretion abusively, risks a claim under the Civil Code's good-faith and fraud provisions. ## Key clauses in a Greek franchise agreement ### Grant, brand and territory Define the franchise, the licensed trademarks and system, the territory, and whether it is exclusive. Keep exclusivity drafted to fit within the competition safe harbour. ### The system and know-how Describe the operations manual, know-how and standards the franchisee must follow, and confirm the franchisor owns or controls the intellectual property. ### Fees Set the initial franchise fee, ongoing royalties, marketing contributions and how each is calculated and paid. ### Training and support State the initial and ongoing training, launch support and continuing assistance the franchisor provides. ### Quality standards and control Set the standards the franchisee must meet and the franchisor's inspection and audit rights, drafted to protect brand identity rather than to fix resale prices, which risks competition problems. ### Non-compete and exclusivity In-term and post-term non-compete clauses are common but must be limited in scope, duration and area to stay within competition limits and the block exemption; an overbroad restraint is void. ### Intellectual property and confidentiality Protect the trademarks, the manual and the know-how; require confidentiality during and after the term. ### Term, renewal and termination Set the term, renewal mechanics, and termination for breach, insolvency or loss of key licences, with cure periods. ### Post-termination obligations Cover de-branding, return of the manual, and the limited, enforceable non-compete after exit. ### Data protection, governing law and disputes Address GDPR and Law 4624/2019 if personal data is shared, and choose Greek law and a forum (courts or arbitration). ## Template skeleton ```

1. Parties, recitals and definitions
2. Grant of franchise, brand and territory
3. Exclusivity
4. The system, manual and know-how
5. Fees: initial, royalties and marketing
6. Training and ongoing support
7. Quality standards and inspection
8. Non-compete and exclusivity (competition-compliant)
9. Intellectual property and confidentiality
10. Term, renewal and termination
11. Post-termination obligations and de-branding
12. Data protection (GDPR and Law 4624/2019)
13. Governing law (Greece) and dispute resolution
14. Signatures

- **No franchise disclosure statute, but good faith governs.** There is no mandated disclosure document, yet the Civil Code good-faith duty in negotiations means misleading a franchisee carries real risk.
- **Nullity overrides choice of law.** If a clause breaches Greek competition law, the nullity applies whatever law the contract picks.
- **EU dimension.** Where the franchise affects cross-border trade, the EU vertical rules apply alongside Greek law. ## From the agreement to running a franchise network Signing the franchise agreement is one day; running a network is years. Someone has to track each franchisee's renewal and termination dates, check that exclusivity and non-compete terms still fit changing competition rules, keep every signed agreement and its manual version straight, and spot when a clause has drifted out of the safe harbour. Across dozens of outlets, that is a lot to hold in email and spreadsheets. An AI contract workspace keeps each franchise agreement, its clause structure, key dates and the shared standards in one place, so you can draft from a master template, see where a restraint looks risky, edit terms in plain language, and get an alert before a renewal or deadline. If you want to see drafting, review, tracking and governance in one workspace, [Adira](https://adiralaw.com) is built around that idea. Deep Greece-specific jurisdiction coverage is on Adira's roadmap today; India is deepest now. ## FAQ