Franchising 2024
Is there a specific law governing franchise relationships in this jurisdiction?>>🔗
In Kuwait, there is no specific law exclusively governing franchise relationships. Instead, franchise arrangements are primarily regulated under two key pieces of legislation, namely:
Kuwait Decree-Law No. 68/1980 On the Promulgation of the Commercial Transactions Law: This law provides the general legal framework for commercial activities in Kuwait, encompassing various business operations, including franchising.
Kuwait Law No. 13/2016 On Commercial Agencies: Enacted on 13 March 2016, Kuwait Law No. 13/2016 specifically addresses the regulation of commercial agencies in Kuwait. Notably, Kuwaiti law does not distinctly differentiate between agents, distributors and franchisees; as a result, franchise agreements often fall under the purview of Kuwait Law No. 13/2016. This law outlines the requirements for registering agency agreements and stipulates the rights and obligations of the involved parties.
Additionally, Kuwait Ministerial Decision No. 565/2017 Releasing the Executive Regulation of the new Commercial Agencies Law serves as the executive regulation for Kuwait Law No. 13/2016, providing detailed procedures and guidelines for its implementation.