The Turkish Franchise Association (UFRAD), or Franchising Derne?i, is the leading non-governmental organization dedicated to the franchising sector in Turkey. Since its inception, UFRAD has been instrumental in promoting the ethical and professional development of the franchising business model across the country. As the primary representative body for the industry, it unites franchisors, franchisees, and service providers, championing best practices and a shared code of conduct to ensure a transparent and reliable market.

UFRAD plays a vital role in the sector's substantial growth by supporting the expansion of successful Turkish brands domestically and internationally, while also facilitating the entry of global franchises into the vibrant Turkish market. Through organizing industry-leading events, providing educational resources, and offering networking opportunities, the association fosters a collaborative community. It also acts as the industry's voice in discussions with governmental bodies, contributing to a well-structured and dynamic franchise landscape. UFRAD is an essential resource for anyone operating or looking to enter the Turkish franchise industry.

Name: Turkish Franchise Association (UFRAD)

Address: Besyol Mah. Inonu Cad. No 40 34295, Florya, Istanbul, Turkey

Phone: +90-212-599-1784

General Email: [email protected]

Prof. Dr. Mustafa Aydin, President

Email: [email protected]

Irem Arman, Coordinator

Email: [email protected]

Gürkan Donat, Board Member

Email: [email protected]

Franchise Legal Framework in Türkiye

Legal Basis
Türkiye has no specific franchise law. Franchising is governed by the Turkish Code of Obligations (Law No. 6098) and the Turkish Commercial Code (Law No. 6102). Franchise agreements are recognized as contractual relationships based on mutual obligations, intellectual property licensing, and operational support.

Registration & Disclosure
There is no statutory franchise registration or disclosure requirement.
However, franchisors are expected to act in good faith and provide accurate pre-contractual information, including financial projections, fee structures, operational guidelines, and brand standards.

Contract Requirements
Franchise agreements should clearly define:

- Royalty and fee structure
- Use of trademarks and intellectual property
- Confidentiality and non-compete clauses
- Duration, renewal, and termination terms
- Dispute resolution mechanisms (often arbitration)

Relevant Legislation

- Competition Law (Law No. 4054): Regulates anti-competitive conduct.
- Personal Data Protection Law (KVKK – Law No. 6698): Governs data processing and cross-border transfer.
- Electronic Signature Law (Law No. 5070): Digital signatures have equal validity as handwritten ones.
- Turkish Penal Code (Law No. 5237) and Law No. 5549: Address anti-corruption and anti-money laundering.

Dispute Resolution
Arbitration is a common and enforceable dispute resolution method.
Türkiye is a signatory to the New York Convention, ensuring the international enforceability of arbitral awards.

- International Arbitration Law (Law No. 4686) for cross-border cases
- Civil Procedure Code (Law No. 6100) for domestic cases

Market Practices
- Common fees: initial franchise fee, royalties, marketing fund, renewal/transfer fees
- Master franchise and area development models are recognized and widely used
- Non-compete clauses valid if reasonable in scope and duration
- Franchisee councils increasingly common to enhance network communication

Summary
Franchising in Türkiye operates under a flexible and transparent contract-based system.
The country offers a rapidly growing market with strong digital integration, robust consumer demand, and a reliable legal environment supported by international commercial standards.