Turkey is an attractive market for foreign franchise brands. Franchise and licensing arrangements involve trademark licensing, technology transfer, and ongoing royalty payments.
Franchise Agreements
Master franchise vs unit franchise structures.
Territory exclusivity provisions.
Royalty and initial fee structures.
Trademark Licensing
Recordation at TURKPATENT recommended.
Quality control by licensor mandatory.
Sub-licensing rights specified.
Taxation and Withholding
Royalty withholding tax: 20% (treaty-reduced).
VAT applicable on royalties.
Transfer pricing documentation needed.
Frequently Asked Questions
Is franchise registration mandatory in Turkey?
No registry, but recordation at TURKPATENT for trademark license recommended.
What is typical royalty range?
5-10% of net sales depending on industry.