After years of negotiations, Italy  finally signed its first franchising law, which became effective May 25, 2004.
The May 6th, 2004 Law, (Legge 6 maggio 2004 n°129: "Norme per la disciplina dell'affiliazione commerciale" - Regulations for the discipline of franchising, was published in the Official Gazette of the Italian Republic on May, 24th, 2004 (Gazzetta Ufficiale n° 120 del 24 maggio 2004).
The law set general guidelines governing franchising contracts.
A comprehensive translation of the law is available on our website:

http://www.buyusa.gov/italy/en/franchisinglaw.html.

A decree on the discipline of franchising(decreto 2 settembre 2005 n°204) was published in the Official Gazette of the Italian Republic on October, 4th, 2005 n° 231 (“Regolamento recante norme per la disciplina dell’affiliazione commerciale di cui all’art. 4 comma 2 della Legge 6 maggio 2004 n°129”).

Franchising began in Italy in 1971, when Assofranchising, the Italian Franchise Association, was established, and the first brand was launched. Franchising has come a long way in this relatively short time; according to the latest figures
(2005 data from Assofranchising, http://www.assofranchising.it/informazioni_statistiche.html), Italy has around 720 franchisers, 45,000 franchisees and counts almost 119,000 employees. Franchising plays a significant role in the Italian economy and it is one of the few sectors to have registered a positive trend, growing steadily in recent years.

The presence of foreign franchisers is relatively stable, with more than 70 foreign brands operating in Italy in 2004.
Though the total number of U.S. companies in the local market is still small, U.S. franchising firms rank first among foreign companies, with more than 30 brands. U.S. franchising is recognized countrywide as the leader in the sector and is considered the primary source for innovative concepts and profits. Thus, good opportunities exist for U.S. franchisers to penetrate the Italian market successfully, if they have the flexibility to adapt to local business practices.

Successful new franchises have created awareness in the Italian business community of franchising as an innovative way to introduce a business concept. This perception is enhanced not only by events such as the franchising trade shows in Italy, but also by favorable publicity in leading financial and trade magazines. Though most of these franchises are concentrated in northern Italy, franchising is also gaining momentum in southern Italy, where it is perceived as a way to help address the effects of chronic unemployment...(continues)

Please note:
This Industry Sector Profile is also part of the more comprehensive
ITALY COUNTRY COMMERCIAL GUIDE 2006.