The concept of a franchise arrangement is not recognised under a separate law in Turkey. There is no legal definition or specific law governing franchising.  There are no legal requirements or compliance procedures imposed on the franchisor prior to offering franchises in Turkey. There are no disclosure requirements under Turkish Law for franchisors.  There is no specific government agency which regulates the offer and sale of a franchise.  The concept of franchise and the content of franchise agreements are considered mainly in case law, which includes the decisions of the Competition Board and the Supreme Court.

 

The relationship of the franchisor and franchisee is governed by the terms of the franchise agreement.

 

In line with the provisions of the Turkish Code of Obligations, any information revealed between the parties during the pre-contractual phase that is later understood to be not in compliance with the initial wills of the parties would disrupt the validity of the contractual relation between the parties.  In such a case the compensation for the damages shall be requested from the court by the party who faced damage thereof.  The damages include actual and prospective damages (loss of profit, loss of business opportunity, etc).