Franchising in the UAE | Legal advocates in Dubai
The United Arab Emirates is fertile ground for franchising due to its vibrant business environment, multicultural population, high customer purchasing power, and a steady stream of tourists seeking familiar brands.
The prospect of expanding their brands attracts brand-owner franchisors. At the same time, local investor franchisees are interested in the advantages of operating their own business under a well-known brand.
The franchise relationship can significantly lower costs and risks for the franchisor and result in great rewards for the franchisee.
There is no franchise legislation in the UAE. All franchise agreements are subject to civil and commercial laws, namely Commercial Agencies Law, Commercial Transactions Law, and Civil Transactions Law.
For Commercial Agencies Law to apply, the:
- Agent must be a UAE national or a company wholly owned by UAE nationals.
- Management of the liquidation is pasRelationship must be exclusive (either to a specific product(s) and/or the territory).
- Relationship between agent and principal must be registered.
Khairallah Advocates & Legal Consultants advises clients in a specialized manner on negotiating commercial agencies, franchising, and distribution and assists them in drafting franchise and agency agreements before Courts and the Ministry of Economy, preserving their rights and interest.