Franchise & Licensing

1. Is there a legal definition of a franchise and, if so, what is it?

The definition of a "franchise" is covered in Article 284 of the Commercial Law 2005 ("the Commercial Law"). This defines a franchise as a commercial activity whereby a franchisor authorizes and requires a franchisee to conduct the purchase and sale of goods or provision of services on its behalf. These transactions must follow the conditions below:

a) The purchase and sale of goods or the provision of services must be conducted under the method of business organization specified by the franchisor. It must also be associated with the trademark, trade name, business know-how, business mission statements, business logo and advertising of the franchisor; and