« Back to Glossary IndexFranchise Agreement
A franchise agreement is a contract between a franchisor (brand owner) and a franchisee (local business operator), allowing the franchisee to use the franchisor’s brand, business model, and intellectual property in exchange for fees or royalties. In the UAE, franchise agreements are regulated under Federal Law No. 18 of 1981 (UAE Commercial Agencies Law), which applies to exclusive distribution and agency arrangements. While registration is not mandatory, registered franchises gain additional legal protections, including restrictions on unilateral termination. Many international brands expand into the UAE through franchising, particularly in food & beverage, retail, and hospitality sectors, leveraging the country’s strong consumer market.
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