Franchising in the UAE
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.
Brand-owner franchisors are attracted by the prospect of expanding their brands, while local investor franchisees are interested in 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.
In order for Commercial Agencies Law to apply, the:
- Agent must be a UAE national or a company wholly owned by UAE nationals.
- Relationship must be exclusive (either as to a specific product(s) and/or the territory).
- Relationship between agent and principal must be registered.
Khairallah Advocates & Legal Consultants advises clients in specialized manner on negotiating commercial agencies, franchising and distribution and assists them in drafting franchise and agency agreements before Courts and Ministry of Economy preserving their rights and interest.