Franchise Agreements in Dubai
Franchise Agreements in DubaiUpdated on Monday 05th September 2016
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Franchising is a good option for doing business in Dubai for many types of international companies in various business fields. A franchise agreement in Dubai must contain several key issues, like the duration of the franchise and renewal terms, the registration of trademarks and how the expertise will be passed to the franchise as well as other issues like employee training and location.
The experts at our law firm in Dubai can provide you with comprehensive information about the legal requirements for opening a franchise in the UAE but also the investment or cultural restrictions that may apply in a particular business field.
Franchising in Dubai
International companies choose to franchise as a means of expanding on the Middle East markets. Dubai is an international financial and business center and many companies are willing to franchise their business to investors who will replicate the model in Dubai.
The franchising model includes a franchisor which is the company that sells the brand, business rights and know-how and the franchisee, the company that purchases the rights and opens a company in Dubai, a location from which the business will be run in the same way as in other countries.
Because the franchisor is usually a large corporation, it needs to allow the smaller company to run the franchise according to its instructions, at the same time allowing access to the know-how and business model. The franchise agreement is concluded particularly in order to allow the franchisee to have access to confidential information, management, and operational skills already implemented by the international company. Our attorneys in Dubai can answer all of your questins concerning this process but also those regarding the trademark protection law and the intellectual property law.
Opening a franchise and concluding a franchise agreement in Dubai
Investors who opt for franchising in Dubai need to conclude a comprehensive agreement that will allow them to carry on the business. Some of the most important information to include in a franchise agreement includes:
- franchise duration and renewal terms;
- royalties and fees;
- trademarks, patents, designs and know-how;
- business operating protocol and sale of goods, etc.
The most important legislative document that regulates franchising in Dubai is the Commercial Agencies Law. Other laws that apply to these types of agreements are the contract law and the commercial law. Most franchising agreements concluded in Dubai are registered with the Federal Ministry of Economy. For this purpose, the investor must first conclude a franchising agreement with the international company and then notarize the agreement (translated into Arabic).
The attorneys at our law firm in Dubai can help you register a franchising agreement and, if needed, terminate such a contract under a justifiable cause. Our experts can also help you with further licensing requirements which are unique for every agreement, depending on the business field.