If written correctly, a LOI can provide a useful roadmap for the essential terms and conditions for the final franchise or master`s contract. However, franchisors (or, of course, franchisees) can expect legal consequences if a law is considered binding, particularly if the agreement is not well formulated or ambiguous because of the commitment or non-binding nature of the contract. But not all international franchise agreements need a provisional agreement. The aim is to reach final agreements in a timely manner and at a cost-effective price; Instead of negotiating legislation, it is sometimes useful to go directly to final documents when the parties clearly agree on the basic business points, especially when deadlines are compressed. The relevant local advisory councils are also very helpful in determining whether such an approach is compatible with the Italian commercial and legal culture. The Italians expect you to respect their oral contracts. Note, however, that there may be many interim agreements in the discussions, which differ from the final agreements. As a general rule, legislation is signed if the parties have already begun or are about to enter into negotiations on the franchise agreement (or, more often, the franchise agreement) but have not yet defined the essential aspects of that agreement. A LOI`s main objective is to: In the case of international franchise transactions in general, franchise agreements in Italy can be multiple, costly and lengthy processes. A law executed, according to its conditions, may mean to a foreign franchisee ready to extend its franchise in Italy that it is a serious potential franchisee 8 or master franchisee” In order to “avoid penalties, the original Italian energy certificate (certifiato di Prestazione Energetica or abbreviated ” APE “) should effectively be attached to the preliminary contract signed by the parties. 3) – ii) The legal down payment As a general rule (but not necessarily and in all cases), at the time of signing the preliminary contract for Italian real estate, a down payment (Caparra) will be payable between 10% and 30% of the sale price of the property. According to Italian law, the legal definition of this deposit can have serious consequences for the foreign buyer. If the paid down payment is defined as “Caparra Confirmatoria,” this means that if the sale of the Italian property closes on the agreed terms, the buyer will automatically lose the entire deposit paid.

Conversely, if the seller is liable, it will be under a binding legal obligation to pay twice to the buyer, the amount originally received in the form of a down payment. In addition, other amounts may be due if it is proven that the damage actually exceeds the amount of the surety. If the down payment is defined as “Caparra Penitenziale,” it will allow, subject to the actual wording of the contract, one or both contracting parties to withdraw from the transaction by allowing the Seller to keep the down payment paid, in the event of the buyer`s termination or the risk that the seller will return the number received if the seller wishes to terminate the contract. 3) – (iii) The mortgage If the property is subject to a mortgage (Mutuo Ipotecario) or the purchase must be concluded with the help of a mortgage, it is important to conclude all necessary banking and legal constructions before signing the contract.