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Italy, known for its food, fashion, and history, is now attracting growing interest from franchisors. Franchised outlets generated €39 billion (approximately $43.8 billion U.S.) in sales in 2025, an 8 percent increase from the previous year, according to the Assofranchising Italia 2026 Report.
In June, Orangetheory Fitness signed its first agreement in Italy to open four studios over the next four years. For brands considering expansion into Italy, here are the key factors the market rewards and the common challenges newcomers face.
Italian city centers are dense, historic, and expensive. Large-format spaces are rare, and converting older buildings is often slow. Orangetheory’s Italian studios will be among the first to use a new, smaller configuration with streamlined equipment, a format designed to open previously unviable sites and significantly reduce upfront capital requirements.
That matters in a market where opening a franchised unit costs about €120,900 (approximately $135,698 U.S.) on average, according to Assofranchising. Italian investors favor compact formats. Brands with large U.S. footprints should test whether their concept can adapt to smaller spaces before committing to a development deal.
A global franchise concept is best executed with local intelligence. The right master franchisee or area developer brings operating experience, real estate relationships, and insight into regional consumer habits that no franchisor can replicate from abroad.
Local supplier partnerships matter, too. Sourcing equipment, ingredients, or materials from respected Italian companies streamlines logistics and lends credibility with consumers who value domestic brands. For franchisors, it signals a commitment to investing in the market rather than simply exporting a concept.
Italy regulates franchising under Law 129/2004. Among its core requirements:
Sector-specific rules add another layer. In fitness, for example, many Italian gyms operate as amateur sports entities with unique tax treatment, and recent sports-labor reforms have changed how instructors may be hired. Across categories, customer data, whether heart rate and wearable data in a fitness studio or personalized data for a loyalty program in retail or quick-service restaurants, falls under the EU’s GDPR. Brands should engage Italian legal and accounting experts early, before finalizing deal terms.
Many Italian categories are large but fragmented. Fitness is a good example. Italy has approximately 8,000 fitness clubs, many independently owned. Boutique studios specializing in Pilates, yoga, and functional training have also grown in number. Consolidation is occurring mainly among low-cost operators. FitActive, Italy’s largest chain, aims for up to 280 clubs, and Germany’s McFit is also entering the market. That leaves coached, results-driven group training as a relatively open segment.
The lesson applies across categories: identify where local competition is heaviest and position the brand where it is lighter.
Italian franchising is characterized by smaller networks: 64 percent of brands operate fewer than 50 franchised outlets. Business is relationship-driven, and consumer habits differ greatly between Milan, Rome, and the South. Franchises should establish strong unit economics in one metropolitan area before expanding.
Italy is not suited for brands seeking rapid expansion. However, food, fashion, or fitness franchisors inclined to adapt their model, partner locally, and comply with regulations will find a growing, underserved consumer base.
Lucy Day is vice president, international, at Orangetheory Fitness, a Purpose Brands company.