How to Start a Franchise Company in Ireland

Investigate the franchise before incorporating

Request financial information, a complete fee schedule, territory details, operating manuals, supplier obligations, training scope, renewal conditions and evidence supporting earnings claims. Speak to current and former franchisees where possible and test the local demand independently.

A successful brand elsewhere does not prove that the proposed Irish location or founder will be profitable. Model sales, gross margin, labour, rent, rates, financing, royalties, marketing levies, refit obligations, stock and working capital under conservative assumptions.

Review the agreement and intellectual property

The franchise agreement can restrict territory, products, pricing conduct, online sales, advertising, suppliers, competing businesses, share transfers and the eventual sale of the franchise. Obtain independent legal advice before paying a non-refundable fee or giving a personal guarantee.

Franchises commonly rely on licensed trademarks and other intellectual property. IPOI explains that a licence grants defined rights to use intellectual property and may be exclusive or non-exclusive, limited by goods, services, manner or locality. Confirm that the franchisor controls the rights it promises.

• Initial fee, royalties and marketing contributions.
• Territory, exclusivity and online-sales rules.
• Trademark, systems and confidential know-how rights.
• Minimum performance, renewal and termination terms.
• Transfer restrictions, guarantees and post-term obligations.

Form the company named in the agreement

Confirm whether the franchise must be held by a new special-purpose company and whether the franchisor must approve its directors and shareholders. The entity on the agreement, lease, finance documents, employment contracts and invoices should be consistent.

For an Irish LTD, prepare the proposed name, officers, registered office, activity, NACE code and share ownership. A trading name containing the franchise brand may need CRO business-name registration, but that registration does not grant trademark rights or replace the franchise licence.

Coordinate premises, funding and licences

Do not let the lease, franchise agreement and loan begin on incompatible dates. Make each commitment conditional where possible on finance, planning, fit-out approval, licences and franchisor consent. Check who owns equipment and improvements if the agreement ends.

Food, childcare, transport, property, financial, health and other sectors can require specific registrations or authorisations. Arrange insurance for the actual activity and confirm whether the franchisor's group policy covers the Irish franchisee or merely the brand owner.

Prepare tax, payroll and opening controls

Register the company for Corporation Tax and any required VAT, employer PAYE or RCT. Review the VAT treatment and withholding implications of initial fees, royalties, marketing contributions and cross-border payments with a tax adviser.

Open company banking, configure the approved point-of-sale and bookkeeping systems, document stock controls and train staff before launch. StartCompany.ie can form the Irish company; the franchise agreement, business viability and regulatory approvals require separate specialist review.