Franchising is becoming a growing entry strategy for foreign and local businesses in Albania. Whether you want to bring an international brand into the market or expand your own concept through partners, franchising offers a flexible way to scale. But the process involves legal steps and local compliance that must be carefully managed from the start.
How franchising works in Albania
A franchise is a business model where one party (the franchisor) grants another (the franchisee) the right to operate under its brand, use its systems, and sell its products or services. In exchange, the franchisee pays a fee and follows the franchisor’s operational model.
In Albania, franchise agreements are allowed and widely used, but there is no specific standalone franchise law. Instead, franchise deals are governed by the general provisions of the Civil Code and commercial contract law. That makes it important to draft strong contracts that clearly define each party’s rights and obligations.
Legal structure for launching a franchise
To operate a franchise in Albania, the franchisee must register a legal business entity—most often a limited liability company (SHPK). This entity is used to sign the franchise agreement, open a bank account, and carry out day-to-day operations.
If you are a foreign franchisor entering Albania, you can either open a local branch or license a local partner through a master franchise agreement. In both cases, the franchise contract must comply with local contract law and tax rules.
Required documentation and registrations
The franchise agreement must clearly cover fees, training, intellectual property rights, brand use, duration, territory, renewal, and exit terms. Although it does not need to be registered with a government agency, it should be notarized and translated into Albanian if signed in another language.
The franchisee must also register for taxes, obtain any required sector-specific licenses, and follow Albanian labor and accounting laws. All commercial activity must be declared with the National Business Center and other relevant authorities depending on the business type.
What to watch out for
Franchise contracts must protect your brand while respecting local legal limits. Any unclear terms can lead to disputes, especially in areas like exclusivity, royalties, and termination rights. Due diligence is also critical before entering into any long-term agreement—whether you are the franchisor or the franchisee.
Franchising can be a powerful way to build presence in Albania, but only when structured with legal clarity and operational readiness from day one.