{"id":150072,"date":"2026-10-07T11:20:01","date_gmt":"2026-10-07T11:20:01","guid":{"rendered":"https:\/\/www.legal500.com\/guides\/?post_type=comparative_guide&#038;p=150072"},"modified":"2026-10-07T11:29:34","modified_gmt":"2026-10-07T11:29:34","slug":"uae-franchise-licensing","status":"publish","type":"comparative_guide","link":"https:\/\/www.legal500.com\/guides\/chapter\/uae-franchise-licensing\/","title":{"rendered":"United Arab Emirates: Franchise &amp; Licensing"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-150072","comparative_guide","type-comparative_guide","status-publish","hentry","guides-franchise-licensing","jurisdictions-uae"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Baker McKenzie<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/Baker_McKenzie_Logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Baker McKenzie<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/www.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/Baker_McKenzie_Logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Franchise &amp; Licensing laws and regulations applicable in United Arab Emirates<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of a franchise and, if so, what is it?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>UAE law does not contain a specific legal definition of a &#8220;franchise&#8221; and there is no standalone franchise legislation. Franchise arrangements are generally governed by the provisions of the UAE Civil Transactions Law, Intellectual Property Laws and other applicable commercial legislation and, where relevant, Commercial Agencies Law. In practice, a franchise is commonly understood as an arrangement under which a franchisor grants a franchisee the right to operate a business using the franchisor&#8217;s trademarks, trade name, business system, know-how and operational methods, usually in exchange for fees and subject to the franchisor&#8217;s standards and controls. The legal characterization of a franchise arrangement under UAE law will depend on its substantive terms rather than its label. Accordingly, certain franchise arrangements may, depending on their structure and the rights granted, fall within the scope of the UAE Commercial Agencies Law where the statutory requirements for registration as a commercial agency are satisfied.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any structuring considerations for foreign franchisors (e.g. use of master franchisees, local presence requirements)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A foreign franchisor is not generally required to establish a UAE-incorporated entity and to have national ownership merely to grant franchise rights in the UAE. It may enter the market by establishing its own local presence or by appointing a UAE-based agent, distributor, or franchisee or master franchisee to operate the business and develop the brand.<\/p>\n<p>In practice, many foreign franchisors appoint a franchisee or master franchisee with local market knowledge rather than establish and operate a local business directly. The appropriate structure will depend on the nature of the business, the franchisor\u2019s expansion strategy, the scope of rights to be granted and the degree of operational control the franchisor wishes to retain.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any requirements that must be met prior to the offer and\/or sale of a franchise? If so, please describe and include any potential consequences for failing to comply.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE does not impose any statutory pre-sale obligations on franchisors prior to the offer or sale of a franchise.<\/p>\n<p>Franchise agreements are governed as ordinary commercial contracts under the UAE Civil Code and the Commercial Transactions Law unless they are registered as commercial agencies with the commercial agency register within the UAE Ministry of Economy and Tourism, in which case the requirements of the UAE Commercial Agency Law in relation to the parties and the agreement must be met.<\/p>\n<p>Notwithstanding the absence of statutory pre-sale disclosure requirements, a party may incur liability under UAE law for bad faith conduct during contractual negotiations, including fraudulent misrepresentation or the concealment of material information that induces the other party to enter into a franchise agreement.<\/p>\n<p>Given the absence of a dedicated franchise law in the UAE, the franchise agreement itself remains the primary source of protection for both parties, making robust contractual drafting essential.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any registration requirements for franchisors and\/or franchisees? If so, please describe them and include any potential consequences for failing to comply. Is there an obligation to update existing registrations?  If so, please describe.  Are there any practical or timing implications (e.g. typical registration timelines, delays in practice)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Registration Requirements<\/strong><\/p>\n<p>The UAE does not have a dedicated franchise registration regime, and franchise agreements are generally not required to be registered. However, if a franchise arrangement is structured as, and qualifies for registration as, a commercial agency, the Commercial Agencies Law requires the arrangement to be registered in the Ministry of Economy and Tourism&#8217;s Commercial Agencies Register before operations commence. Failing to register the arrangement means it will not be recognized as a registered commercial agency.<\/p>\n<p>To be eligible for registration, the Commercial Agent must be a UAE national individual,\u00a0 a public legal person, a private legal person wholly owned by UAE nationals, or a company wholly owned by UAE nationals. The arrangement must also be governed by a written and documented contract between the Agent and the original Principal, accompanied by a valid business license and an attested and legalized copy of the agency contract.<\/p>\n<p>In addition, franchise arrangements commonly involve the licensing of brand rights; registration of the franchisor\u2019s trademark provides the rights conferred by trademark registration under the UAE Trademark Law. The law also separately provides protection for well-known trademarks in the circumstances specified by its provisions. The trademark owner may license one or more natural or legal persons to use the registered trademark for all or some of the goods or services for which it is registered. The duration of the licence may not exceed the period prescribed for the trademark protection.<\/p>\n<p>The contract licensing the use of the trademark must be made in writing and duly documented. Although records of the licence in the Trademarks Register are not mandatory, the parties should ensure that the agreement clearly defines the scope of the licensed rights and satisfies the applicable formalities.<\/p>\n<p>The law does not expressly address the contractual position where an agreement permits the use of an unregistered sign and does not state that such an agreement is invalid. However, its express licensing provisions and the license notation or registration process are framed by reference to a registered trademark.<\/p>\n<p><strong>Obligation to Update Registrations<\/strong><\/p>\n<p>Any changes or amendments to a registered Commercial Agency must be notified to the Ministry of Economy and Tourism within 60 days of the change occurring. Similarly, if the arrangement expires or the Agent no longer meets the eligibility criteria, an application for deletion from the Commercial Agency Register must be submitted within 60 days.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any disclosure requirements (franchise specific or in general)? If so, please describe them (i.e. when and how must disclosure be made (is there a minimum disclosure period before signing or payment (e.g. cooling-off period)), is there a prescribed format, must it be in the local language, do they apply to sales to sub-franchisees) and include any potential consequences for failing to comply.   Is there an obligation to update and\/or repeat disclosure (for example in the event that the parties enter into an amendment to the franchise agreement or on renewal)? What are the consequences of late or incomplete disclosure?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no franchise-specific disclosure, form, language or registration requirements under UAE law. However, if the parties intend for the franchise arrangement to be registered as a commercial agency under the UAE Commercial Agencies Law, the commercial agency registration requirements would need to be satisfied. In particular, the agency agreement and supporting documentation submitted for registration must generally be in Arabic or accompanied by a certified Arabic translation, and foreign documents typically must be notarized and legalized (or apostilled, where applicable) before they can be registered with the Ministry of Economy and Tourism. These requirements apply to the registration process rather than to pre-contractual disclosure. Failure to comply may prevent registration of the arrangement as a commercial agency.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If the franchisee intends to use a special purpose vehicle (SPV) to operate each franchised outlet, is it sufficient to make disclosure to the SPVs' parent company or must disclosure be made to each individual SPV franchisee?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no statutory requirement under UAE law that disclosure be provided separately to each SPV franchisee. In the absence of a franchise disclosure regime, disclosure to the parent company that negotiates and controls the SPVs will generally be sufficient. Nevertheless, where individual SPVs are the contracting franchisees, it is advisable for the franchisor to ensure that each SPV acknowledges receipt of the relevant information and contractual documentation in order to minimize the risk of future disputes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What actions can a franchisee take in the event of mis-selling by the franchisor?  What are the main legal grounds for such claims (e.g. misrepresentation, statutory disclosure breaches, unfair commercial practices)?  To what extent can liability be excluded or limited by non-reliance or entire agreement clauses or disclaimers in the franchise agreement, disclosure document or sales material?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As there is no franchise-specific legislation in the UAE, there are no statutory franchise disclosure claims. A franchisee alleging mis-selling would generally rely on UAE law principles relating to fraud, misrepresentation, defects in consent and civil liability.<\/p>\n<p>Depending on the circumstances, the franchisee may seek damages and, in certain cases, rescission of the franchise agreement where it can demonstrate that it was induced to enter into the agreement by false or misleading statements or the concealment of material information.<\/p>\n<p>Non-reliance clauses, entire agreement clauses and disclaimers are generally recognized under UAE law and may assist in limiting claims based on pre-contractual representations. However, such provisions are unlikely to be enforceable to the extent that they purport to exclude liability for fraud, intentional misrepresentation or deliberate concealment of material facts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Would it be legal to issue a franchise agreement on a non-negotiable, \"take it or leave it\", basis?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>UAE law does not prohibit a franchisor from offering a franchise agreement on a non-negotiable, &#8220;take it or leave it&#8221; basis. Parties are generally free to agree the terms governing their commercial relationship, subject to compliance with mandatory provisions of UAE law and public policy.<\/p>\n<p>However, certain provisions may be subject to judicial scrutiny, particularly where they are contrary to mandatory law, public order or morals. In addition, if the arrangement is registered as a commercial agency and falls within the scope of the UAE Commercial Agencies Law, certain statutory protections and mandatory rules may apply notwithstanding any contrary contractual provisions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are trademarks, know-how, trade secrets and copyright protected in your country?  Are there any specific requirements or risks relating to the licensing of know-how and trade secrets in a franchise context?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Trademarks are protected under the UAE Trademark Law and may be registered with the Ministry of Economy and Tourism, giving the owner rights against confusing unauthorized use. Trademark licences must be written and documented, may regulate territory, duration, quality control and misuse, and cannot exceed the trademark\u2019s protection period; recordal is optional. Copyright arises automatically upon creation of a qualifying work, but licences or transfers of economic rights must be in writing and specify the rights, subject matter, duration and place of use. Patents, utility certificates and industrial designs may also be licensed under a signed written agreement for no longer than their protection period; recordal is required for effectiveness against third parties, and registration may be refused where the licence abuses the right or harms competition.<\/p>\n<p>Know-how, trade secrets and confidential information may qualify as \u201cundisclosed information\u201d where they are not generally known in the relevant field, derive commercial value from confidentiality and are subject to effective protective measures. The holder should restrict access, regulate internal circulation and take reasonable steps to prevent disclosure; otherwise, the information may lose protection or the holder may be unable to avoid liability for infringement by others. Although there are no franchise-specific licensing rules, franchise agreements should clearly regulate the permitted use and disclosure of know-how, manuals, system standards and other confidential information during and after the term.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any franchise specific laws governing the ongoing relationship between franchisor and franchisee? If so, please describe them, including any terms that are required to be included within the franchise agreement.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE does not have franchise-specific legislation governing the ongoing relationship between franchisors and franchisees, nor does it prescribe mandatory terms that must be included in a franchise agreement.<\/p>\n<p>Accordingly, the parties are generally free to determine the terms of their relationship, subject to the UAE&#8217;s general contractual and commercial law principles. \u00a0However, franchise agreements typically address key matters such as the grant of franchise rights, territory, fees and royalties, intellectual property rights, operational standards, training and support, confidentiality, term and termination, post-termination obligations, and dispute resolution. In the absence of a dedicated franchising regime, these matters are largely governed by contractual agreement between the parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any aspects of competition law that apply to the franchise transaction (i.e. is it permissible to prohibit online sales or use of online marketplaces (e.g. Amazon, third-party platforms), insist on exclusive supply, fix or set maximum retail prices, operate dual distribution\/hybrid franchisor models)? If applicable, provide an overview of the relevant competition laws.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Franchise arrangements are subject to the UAE Competition Law, which prohibits anti-competitive agreements, abuse of a dominant position and certain economic concentrations. However, there are no franchise-specific competition rules and limited published guidance on the application of competition law to franchise systems.<\/p>\n<p>As a result, restrictions commonly found in franchise agreements are generally assessed under the ordinary competition law framework on a case-by-case basis, taking into account the parties&#8217; market position and the effect of the arrangement on competition in the relevant market.<\/p>\n<p>In principle:<\/p>\n<ul>\n<li><strong>Online sales restrictions and marketplace bans<\/strong>: there are no specific UAE rules addressing restrictions on online sales or the use of third-party online marketplaces. Such restrictions are generally permissible, provided they do not constitute an unlawful restriction of competition under the UAE Competition Law.<\/li>\n<li><strong>Exclusive supply and purchasing obligations:<\/strong> exclusive supply and purchasing arrangements are generally permissible, particularly where they are necessary to protect the franchisor&#8217;s know-how, ensure quality control or preserve the uniformity of the franchise system.<\/li>\n<li><strong>Dual distribution models:<\/strong> arrangements under which a franchisor operates company-owned outlets while also appointing franchisees are generally permissible, provided that the arrangement does not amount to unlawful allocation of customers, territories or markets in breach of the UAE Competition Law.<\/li>\n<li><strong>Resale pricing:<\/strong> mandatory resale price maintenance may raise competition law concerns. By contrast, recommended or maximum resale prices are generally less problematic, provided they do not operate in practice as fixed or minimum resale prices.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any ESG, compliance or supply chain-related legal requirements impacting franchise systems?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While the UAE does not have to date ESG, compliance or supply chain-specific laws directed at franchise systems, a number of generally applicable laws may affect franchisors and franchisees depending on the nature of their business and operations.<\/p>\n<p>In particular, Federal Law No. 12 of 2018 on Integrated Waste Management establishes a framework for waste reduction, handling and disposal, while Federal Decree-Law No. 11 of 2024 on the Reduction of Climate Change Effects introduces climate-related obligations for entities falling within its scope.<\/p>\n<p>In addition, franchise businesses remain subject to other generally applicable regulatory requirements, including consumer protection, product safety, data protection, employment and health and safety laws, as well as any sector-specific supply chain obligations.<\/p>\n<p>Accordingly, franchisors commonly include in their franchise agreements and operating manuals requirements for franchisees to comply with applicable environmental, regulatory and sustainability laws and standards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are in-term non-compete and non-solicitation clauses enforceable and are there any limitations on the franchisor's ability to impose and enforce them?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no franchise-specific rules governing non-compete or non-solicitation obligations under UAE law. Such restrictions are assessed under the general principles of the UAE Civil Transactions Law.<\/p>\n<p>In-term non-compete and non-solicitation obligations are generally enforceable, provided they are reasonably drafted, serve a legitimate commercial purpose and do not contravene mandatory provisions of UAE law, public order or public morals.<\/p>\n<p>Where a franchise arrangement is registered as a commercial agency, additional considerations may arise under the UAE Commercial Agencies Law, particularly in relation to termination and the franchisee&#8217;s statutory rights.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an obligation (express or implied) to deal in good faith in franchise relationships?  If so, what practical effects does this have on the relationship between franchisor and franchisee?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>UAE law imposes a general duty of good faith in the performance of contracts. As a result, franchisors and franchisees must exercise their rights and perform their obligations in good faith throughout the franchise relationship.<\/p>\n<p>Although the duty of good faith does not give rise to franchise-specific obligations, it may affect the parties&#8217; conduct in relation to matters such as cooperation, performance, enforcement of contractual rights and termination. A party that acts in bad faith may be exposed to claims for damages or other remedies, even where its conduct is consistent with the strict wording of the franchise agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any employment or labour law considerations that are relevant to the franchise relationship? Is there a risk that the staff of the franchisee could be deemed to be the employees of the franchisor? What level of operational control may a franchisor exercise without creating employment or agency risk?  What steps can be taken to mitigate this risk?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Employment and labor law considerations are relevant to franchise arrangements, although there are no franchise-specific employment law provisions. As a general rule, the franchisor and franchisee are regarded as separate legal entities, and the franchisee&#8217;s employees are not ordinarily considered employees of the franchisor.<\/p>\n<p>A franchisor may generally impose brand standards, operational procedures, training requirements and quality controls without creating employment or agency risk. However, involvement in recruitment, supervision, remuneration, disciplinary management or day-to-day management of the franchisee&#8217;s personnel may increase the risk of the franchisor being viewed as exercising employer-like control.<\/p>\n<p>To mitigate this risk, the franchise agreement should clearly provide that the parties are independent contractors, that the franchisee is solely responsible for all employment matters relating to its personnel, and that the franchisee has no authority to bind the franchisor. In practice, the franchisee should retain responsibility for the recruitment, management, compensation and termination of its employees, while the franchisor&#8217;s control should be limited to the protection of the franchise system, operational standards and brand requirements.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a risk that a franchisee could be deemed to be the commercial agent of the franchisor? What steps can be taken to mitigate this risk?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A franchise arrangement may be at risk of being characterized as a commercial agency if it satisfies the requirements of the UAE Commercial Agencies Law and is registered with the Ministry of Economy and Tourism. If a franchise is registered as a commercial agency, the franchisee may benefit from statutory protections, including restrictions on termination and potential compensation rights.<\/p>\n<p>To mitigate this risk, franchise agreements commonly provide that the relationship is that of independent contracting parties, that no agency relationship is intended or created, and that the franchisee has no authority to bind the franchisor. The agreement should also expressly prohibit the franchisee from registering or attempting to register the arrangement as a commercial agency.<\/p>\n<p>In practice, the parties should ensure that the franchise relationship is structured and operated consistently with its contractual terms. However, the risk of recharacterization will ultimately depend on the particular facts and whether the statutory requirements for the application of the Commercial Agencies Law are satisfied.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any laws and regulations that affect the nature and payment of royalties to a foreign franchisor and\/or how much interest can be charged? Are there any requirements for payments in connection with the franchise agreement to be made in the local currency?  Are there any restrictions on structuring payments (e.g. royalties vs service fees vs mark-ups)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The UAE does not impose franchise-specific restrictions on the payment of royalties to foreign franchisors, the currency in which franchise-related payments must be made, or the structuring of franchise fees.<\/p>\n<p>Accordingly, the parties are generally free to agree the nature, amount and structure of payments under the franchise agreement, including initial franchise fees, ongoing royalties, service fees and advertising contributions, subject to compliance with generally applicable laws.<\/p>\n<p>The UAE does not impose exchange control restrictions, and franchise-related payments may generally be denominated and paid in a foreign currency. Contractual interest on overdue payments is also generally permissible, subject to the applicable provisions of UAE law.<\/p>\n<p>However, the structure and pricing of payments should be considered in light of applicable tax rules, including UAE corporate tax and transfer pricing requirements where relevant.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to impose contractual penalties on franchisees for breaches of restrictive covenants etc.? If so, what requirements must be met in order for such penalties to be enforceable?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the UAE Civil Transactions Law, the parties may agree in advance on liquidated damages payable upon a breach, including breaches of non-compete, non-solicitation and other restrictive covenants.<\/p>\n<p>However, UAE courts have broad discretion to review such clauses and may reduce the agreed amount if it is considered excessive or disproportionate to the actual harm suffered. Conversely, a party may be entitled to recover damages exceeding the agreed amount where fraud or gross fault is established.<\/p>\n<p>Accordingly, contractual penalty clauses are generally enforceable, provided they are reasonable, proportionate and designed to protect a legitimate commercial interest. In practice, penalties that are excessive or punitive are more likely to be reduced or set aside by the courts.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What tax considerations are relevant to franchisors and franchisees? Are franchise royalties subject to withholding tax?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Franchise arrangements are subject to the UAE&#8217;s generally applicable tax regime, including corporate tax and VAT. The tax treatment of franchise fees, royalties and other payments will depend on the particular structure of the arrangement and the parties involved.<\/p>\n<p>As part of introducing a corporate tax framework, the UAE does have a withholding tax regime on payments of UAE state-sourced income which is defined to include income from the use or the right to use or the grant of permission to use any intellectual or intangible property. Whilst the UAE does have a withholding tax regime, the current withholding tax rate is 0% and there is no (i) registration (ii) filing and\/or (iii) payment obligation.<\/p>\n<p>Accordingly, royalty payments and other franchise-related payments made by a UAE franchisee to a foreign franchisor are not subject to UAE withholding tax.<\/p>\n<p>In addition, the parties should consider the potential application of UAE corporate tax and transfer pricing rules, particularly where the franchisor and franchisee are related parties or part of the same multinational group.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is e-commerce regulated and does this have any specific implications on the relationship between franchisor and franchisee?  For example, can franchisees be prohibited or restricted in any way from using e-commerce in their franchise businesses?  Are there any rules regarding online sales within or outside a franchisee\u2019s territory?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>E-commerce activities are primarily regulated by Federal Decree-Law No. 46 of 2021 on Electronic Transactions and Trust Services and Federal Decree-Law No. 5 of 2023 on Consumer Protection, both of which apply generally to online commercial activities.<\/p>\n<p>There are no franchise-specific rules governing e-commerce or online sales. Accordingly, a franchisor may generally regulate a franchisee&#8217;s use of e-commerce channels, online marketplaces and online sales through the franchise agreement and related operating standards.<\/p>\n<p>There are also no specific statutory rules governing online sales within or outside a franchisee&#8217;s territory. However, restrictions on online sales channels, online marketplaces, customers or territories should be assessed under the UAE Competition Law and should not amount to an unlawful restriction of competition.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the applicable data protection laws and do they have any specific implications for the franchisor\/franchisee relationship?   In particular, what are the key data protection considerations in a franchise relationship, including: (a) allocation of controller\/processor roles; (b) use of customer databases; (c) cross-border data transfers; and (d) marketing and CRM activities?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The principal federal legislation is Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data (the <strong>PDPL<\/strong>), which applies to relevant processing in mainland UAE and free zones without their own data protection regimes. Separate regimes apply in the Dubai International Financial Centre under DIFC Data Protection Law No. 5 of 2020 and in the Abu Dhabi Global Market under the ADGM Data Protection Regulations 2021. The applicable regime depends on the location of the parties and processing activities.<\/p>\n<p>The parties\u2019 roles must reflect their actual activities: each may be an independent controller, they may be joint controllers where they jointly determine the purposes and means of processing, or one may be a processor where it acts solely on the other\u2019s instructions. Any processor arrangement should be governed by appropriate contractual terms covering instructions, confidentiality, security, records, deletion or return, and cooperation.<\/p>\n<p>The franchise agreement should clearly regulate the collection, access, use and sharing of customer databases, responsibility for privacy notices and data-subject requests, security and breach management, and the treatment of data on expiry or termination. Contractual ownership or access rights do not permit processing contrary to applicable data protection law.<\/p>\n<p>Cross-border transfers and remote access must satisfy the applicable transfer rules. Under the PDPL, transfers are permitted where the destination provides adequate protection or an applicable safeguard or statutory derogation is available, including certain contractual arrangements or express consent in the circumstances contemplated by the PDPL. The relevant mechanism should cover onward transfers, overseas hosting, and access by the franchisor, its affiliates and service providers.<\/p>\n<p>Marketing and CRM activities require an appropriate lawful basis and compliance with transparency, purpose-limitation and data-subject rights requirements. The parties should identify who controls the marketing strategy, recipient selection and CRM platform, provide the required privacy information and obtain any necessary consents, record and action opt-outs, and prevent unrelated reuse or sharing of customer data. Additional electronic marketing and sector-specific requirements may apply.<\/p>\n<p>Franchise documentation should therefore allocate responsibility for controller and processor roles, database access and use, notices and data-subject requests, security and breaches, international transfers, marketing, retention and deletion, audit and cooperation rights, and termination consequences.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the franchisor permitted to restrict the transfer of (a) the franchisee's rights and obligations under the franchise agreement or (b) the ownership interests in the franchisee?  Can the franchisor impose conditions on transfers (e.g. approval rights, fees, qualification criteria)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A franchisor may generally restrict both (a) the transfer of the franchisee&#8217;s rights and obligations under the franchise agreement and (b) changes in ownership or control of the franchisee. The franchisor may also impose conditions on such transfers, including prior approval rights, qualification criteria for the proposed transferee and reasonable transfer requirements.<\/p>\n<p>Such restrictions are generally enforceable under the UAE Civil Transactions Law, provided they are clearly agreed between the parties and do not contravene mandatory provisions of law, public order or public morals.<\/p>\n<p>Accordingly, franchise agreements commonly require the franchisor&#8217;s prior written consent to direct or indirect transfers and permit the franchisor to assess whether the proposed transferee satisfies the franchisor&#8217;s operational, financial and qualification standards.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent can a franchisor impose audit rights, reporting obligations, and operational controls on a franchisee, and what legal limits apply?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A franchisor may generally impose extensive audit rights, reporting obligations and operational controls on a franchisee to protect the franchise system, know-how and brand standards. Such rights commonly include reporting requirements, inspections, compliance audits and adherence to operating manuals.<\/p>\n<p>There are no franchise-specific limitations on these controls. However, they must be exercised in accordance with the franchise agreement and the general principles of the UAE Civil Transactions Law, including the duty of good faith.<\/p>\n<p>In practice, the franchisor&#8217;s control should be limited to the protection and operation of the franchise system, while the franchisee should retain responsibility for the day-to-day management of its business and employees. The franchise agreement should clearly define the scope of the franchisor&#8217;s rights and confirm the parties&#8217; status as independent contracting parties.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a franchisee have a right to request a renewal on expiration of the initial term? In what circumstances can a franchisor refuse to renew a franchise agreement? If the franchise agreement is not renewed or it if it terminates or expires, is the franchisee entitled to compensation? If so, under what circumstances and how is the compensation payment calculated?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Outside the commercial agency regime, a franchisee has no statutory right to renewal. Renewal is governed solely by the terms of the franchise agreement, and the franchisor may generally refuse renewal in accordance with those terms.<\/p>\n<p>Similarly, a franchisee is not generally entitled to compensation upon the non-renewal, expiry or termination of a franchise agreement, unless such entitlement arises under the franchise agreement itself or under general principles of UAE law.<\/p>\n<p>However, where the franchise arrangement is registered as a commercial agency, the position differs significantly. The Commercial Agencies Law permits termination and non-renewal in specified circumstances, including expiry of the agreed term, subject to statutory notice requirements and any compensation determined by the court. However, these reforms are subject to transitional provisions that defer their application to certain long-standing commercial agencies, and their practical implementation remains uncertain pending further guidance and established administrative or judicial practice.<\/p>\n<p>Accordingly, the principal risk of mandatory renewal rights and compensation claims arises where the franchise arrangement falls within, and is registered under UAE Commercial Agencies Law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any mandatory termination rights which may override any contractual termination rights? Is there a minimum notice period that the parties must adhere to?  Are there any requirements regarding notice periods and opportunities to remedy breaches before termination?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There are no franchise-specific statutory termination rights, minimum notice periods or mandatory cure periods under UAE law. Accordingly, termination rights, notice requirements and opportunities to remedy breaches are generally governed by the terms of the franchise agreement.<\/p>\n<p>However, the exercise of contractual termination rights remains subject to the general principles of the UAE Civil Transactions Law, including the duty of good faith. Accordingly, franchise agreements should clearly specify the grounds for termination, any applicable notice periods and any cure rights afforded to the defaulting party.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any intangible assets in the franchisee's business which the franchisee can claim ownership of on expiry or termination, e.g. customer data, local goodwill, etc.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no franchise-specific rule under UAE law granting franchisee ownership of intangible assets upon expiry or termination of a franchise agreement. Ownership of intellectual property, know-how, customer databases, goodwill and other intangible assets is primarily a matter of contract.<\/p>\n<p>Franchise agreements typically provide that the franchisor retains ownership of the franchise system and related intellectual property rights. Accordingly, the franchise agreement should clearly address ownership and post-termination rights in respect of customer data, goodwill and other intangible assets created or used during the franchise relationship.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What post-termination obligations are typically enforceable (e.g. de-branding, return of confidential information, non-compete, non-solicitation) and how readily are such post-term restrictions enforced in practice?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Post-termination obligations such as de-branding, cessation of use of trademarks, return or destruction of confidential information, and return of operating manuals and other proprietary materials are generally enforceable, provided they are clearly set out in the franchise agreement.<\/p>\n<p>Post-term non-compete and non-solicitation obligations may also be enforceable, provided they are reasonable in duration, geographic scope and restricted activities and are necessary to protect the franchisor&#8217;s legitimate interests. UAE courts may reduce or decline to enforce restrictions that are excessive or disproportionate.<\/p>\n<p>In practice, obligations relating to de-branding, confidentiality and intellectual property protection are generally more readily enforced than post-term restrictive covenants. Accordingly, post-termination restrictions should be carefully drafted and proportionate to the interests they are intended to protect.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a national franchising association? Is membership required?  If not, is membership commercially advisable? What are the additional obligations of the national franchising association?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is\u00a0no national franchising association in the UAE, and there are no franchise-specific membership requirements. Accordingly, membership of any local business or industry association is entirely voluntary and not required as a matter of law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are foreign franchisors treated differently to domestic franchisors? Does national law\/regulation impose any debt\/equity restrictions?  Are there any restrictions on the capital structure of a company incorporated in your country with a foreign parent (thin capitalisation rules)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under UAE law, foreign franchisors are not generally subject to different franchise-specific rules than domestic franchisors.<\/p>\n<p>Further, UAE law does not impose franchise-specific debt-to-equity requirements or capitalization rules on franchisors. There are also no general thin capitalization rules applicable to companies solely because they have a foreign parent. However, financing arrangements must comply with applicable UAE corporate, tax and transfer pricing requirements, and any sector-specific regulations where relevant.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Must the franchise agreement be governed by local law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no requirement under UAE law that a franchise agreement must be governed by UAE law. The Civil Transactions Code recognizes party autonomy in the choice of governing law, and parties are generally free to select a foreign governing law to apply to their agreement.<\/p>\n<p>However, where the franchise qualifies as a Commercial Agency, the mandatory protections of the Commercial Agency Law will apply regardless of the governing law chosen by the parties. A foreign governing law clause will therefore not displace the mandatory provisions of the Commercial Agency Law in practice.<\/p>\n<p>Even where the arrangement does not qualify as a Commercial Agency, franchisors should be aware that UAE courts may apply mandatory provisions of UAE law, including those relating to public order and morals under the Civil Transactions Code, notwithstanding a foreign governing law clause.<\/p>\n<p>Franchisors should therefore carefully consider the practical implications of a foreign governing law choice before finalizing the franchise agreement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What dispute resolution procedures are available to franchisors and franchisees?  Are there any advantages to out of court procedures such as arbitration versus litigation, in particular if the franchise agreement is subject to a foreign governing law?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Franchisors and franchisees may resolve disputes through the UAE courts or, where agreed, through arbitration. Mediation and other consensual dispute resolution mechanisms are also available.<\/p>\n<p>For international franchise arrangements, arbitration is often preferred, particularly where the franchise agreement is governed by foreign law. Arbitration generally offers greater flexibility in relation to the governing law, language of proceedings and selection of decision-makers, and provides greater certainty that the parties&#8217; chosen governing law will be applied. Arbitral awards are also generally enforceable in the UAE.<\/p>\n<p>By contrast, court proceedings are generally conducted in Arabic and, notwithstanding a contractual choice of foreign law, may be less well suited to disputes involving foreign governing laws.<\/p>\n<p>Accordingly, arbitration is commonly used in cross-border franchise arrangements involving foreign franchisors.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Must the franchise agreement and disclosure documents be in the local language?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>There is no general requirement under UAE law for franchise documentation to be in Arabic, and franchise agreements are commonly drafted in English.<\/p>\n<p>However, where a franchise arrangement is registered as a commercial agency, the agreement must be submitted in Arabic or accompanied by a certified Arabic translation for registration purposes.<\/p>\n<p>An Arabic translation may also be required if the franchise documentation is submitted to UAE courts or certain government authorities. Accordingly, the language of franchise documentation is generally a matter of contract unless commercial agency registration or use before UAE authorities is contemplated.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is it possible to sign the franchise agreement using an electronic signature (rather than a wet ink signature)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Unless a wet ink signature is specifically required by any authority, it is generally possible to sign a franchise agreement using an electronic signature under Federal Decree-Law No. 46\/2021 on Electronic Transactions and Trust Services. Electronic signatures are recognized as legally valid and equivalent to handwritten signatures, provided the signature is uniquely linked to and capable of identifying the signatory, created using data under the signatory&#8217;s sole control, and linked to the document in a manner that detects any subsequent changes.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do you foresee any significant commercial or legal developments that might impact on franchise relationships over the next year or so?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>We are not aware of any significant franchise-specific legislative developments currently proposed in the UAE.<\/p>\n<p>However, businesses should continue to monitor the implementation of the Commercial Agency Law, which introduced greater flexibility regarding the termination and non-renewal of registered commercial agencies and permits brand owners, in certain circumstances, to register agencies for their own brands.<\/p>\n<p>As these reforms are relatively recent, it remains to be seen how they will be interpreted and applied in practice by the relevant authorities and courts. Franchisors and franchisees should also continue to monitor developments in areas of general application, including competition law, data protection, corporate tax and ESG-related regulation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">6137<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/150072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/www.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=150072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}