Globalization coupled with easy accessibility of advanced technology has had a phenomenal impact on the franchisee-franchisor relationship across the globe. The synergy-oriented structure of a franchise has played a vital role in the expansion of businesses with the support of economic liberation, synergy and opportunity for expansion of the business operation. It is largely stated that “franchise is the most successful marketing strategy applied for business expansion”. This Practice Note attempts to provide an understanding on the concept of franchise, which should be considered by the parties while drafting a franchise agreement with respect to the Kingdom of Bahrain.