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ARTICLE · 15 NOVEMBER 2016

Franchising In Egypt

Youssry Saleh Law Firm
Youssry Saleh Law Firm
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Youssry Saleh Law Firm

Youssry Saleh Law Firm

Youssry Saleh Law Firm, based in Cairo, has been operating since 1985. During 40 years of practice...

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A franchise agreement is the agreement concluded between a seller "Franchisor" and the buyer "Franchisee" by which the franchisor allows the franchisee to use its trade mark and provides him with the knowhow...

EgyptCorporate/Commercial Law
Mayar Rashed
Mayar Rashed
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A franchise agreement is the agreement concluded between a seller "Franchisor" and the buyer "Franchisee" by which the franchisor allows the franchisee to use its trade mark and provides him with the knowhow and the manual book of business (the rules, steps and manuals to run the business), while the franchisor is not liable for the franchisee's illegal acts or conducts.

A- Types of franchises:

Franchises may be divided into three types:

1- Business Format franchise:

  • It is the franchise in which the franchisee adopts the entire business systems of the franchisor, and it is the most common type of franchising, e.g. McDonalds and KFC.

2- Product distribution:

  • It is the franchise in which the franchisee sells the franchisor's products with more freedom to choose business styles and distribution techniques and the franchisor exercises less control than in the business format franchise e.g. automobile dealership.

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