The franchise model has become a popular method for overseas companies seeking to do business in the UAE to enter the market whilst retaining control over their brand. It is also popular with UAE businesses seeking to expend domestically and regionally.

In brief:

• There is no one specific franchise law in the UAE. The concept of franchising falls within the ambit of commercial and agency laws which do not specifically differentiate between franchise, agency or distribution agreements.

• The Agency Law tends to favour agents/franchisees rather than franchisors.

• Registration of agreements with the Ministry of Economy can provide an enhanced ability to prevent parallel trading of goods and a clear evidential basis upon which to proceed with any actions for trade mark infringement, however termination of a registered agency agreement can be difficult.

We are often asked by international brands looking to enter the UAE retail market and potential franchisees looking to acquire a franchise interest what franchising laws the UAE has in place.