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ARTICLE · 15 NOVEMBER 2019

Franchise 2020

HAS Law Firm
HAS Law Firm
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HAS Law Firm

HAS Law Firm

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In this article we shall limit our reply with regard to UAE law but not in respect of the Dubai International Financial Centre or Abu Dhabi Global Markets law.

United Arab EmiratesCorporate/Commercial Law

1. RELEVANT LEGISLATION AND RULES GOVERNING FRANCHISE TRANSACTIONS

1.1 What is the legal definition of a franchise?

In this article we shall limit our reply with regard to UAE law but not in respect of the Dubai International Financial Centre or Abu Dhabi Global Markets law.

There is no specific legal definition of franchise in UAE law; however, franchise is commonly used to refer to a grant of the right to operate and share in the profits of a business or sell goods or services under a brand or chain name. Additionally, franchise may mean the right granted to a person to operate a store or sell goods or services under a franchise agreement. The owner (the franchisor) will license outlets to others (the franchisees) to operate using business concepts, property, trademarks and tradenames owned by the franchisor.

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