How to set up a franchise in Malta

The business environment in Malta is one that has been marked by change and diversification. Malta has expanded from being an agrarian-centric economy into, engineering, pharmaceuticals, hospitality, healthcare, aviation, maritime, electronics, and logistics. This has attracted a vast number of investors from all walks of life. 
One of the most rewarding business ventures in Malta is Franchise businesses. There are a variety of options that you can choose from when it comes to franchise ventures in Malta. Whatever franchise type you choose, it should comply with the Contract Law.

 

Franchise types in Malta
The Maltese legislation provides a more established charter for the creation of franchise businesses in comparison to its other European counterparts. In a franchise, two parties are involved—the franchisor which is the company with the trademark being marketed and the franchisee—the party paying for marketing the trademark. The franchise business types available in Malta are;
 

  • Single unit franchise business

 this allows the enterpriser (franchisee) to be the exclusive representative of their company (the franchisor);
 

  • Multi-unit franchise business

 this allows the franchisee to create other franchise businesses;
 

  • Master franchise business

The master franchisee can lease the venture to other franchisees
 
According to the Maltese legislation, the franchisee should pay a certain fee to the franchisor. The value of the sum to be paid, however, is determined by the type of the franchise contract signed and the unit type which will then be structured.
 

How to register a franchise in Malta
The first move when setting up a franchise business in Malta is to get registered. The Maltese trade register is responsible for the registration franchises in Malta. After registration, the entrepreneur will have to sign a franchise agreement with the franchisor. It is highly recommended to adopt a sole proprietorship or limited liability company type when setting up a franchise business in Malta.
 
Post registration, the two parties will decide the franchise unit type which they would want to adopt. Finer details on what the business will imply maybe aired out at this point and the franchise agreement is not entitled to be registered with the authorities. The franchise agreement complies with the requirements stipulated by the commercial law, civil law and the intellectual property legislation. 
 
Professional Assistance
For further assistance in opening up a franchise business in Malta, you can contact our expert team of consultants, accountants, and lawyers at SIGTAX. They can help with the registration processes and even with the drafting of the franchise agreement. We can also help if you need answers to few questions concerning forming a franchise in Malta. Don’t hesitate to contact our friendly team!

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