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Experts shed light on legal aspects of franchising in the UAE
(4 February 2019)


Business owners and professionals in the UAE should be fully aware of local laws that apply to franchising activities and related risks before entering into franchise agreements, according to legal experts who led a workshop in Dubai which was organised by Dubai Chamber of Commerce and Industry in cooperation with The Jorgensen Law Firm PLLC and Hoda Barakat Legal Consultancy.

The workshop, recently held at Dubai Chamber’s premises, was attended by lawyers, legal practitioners, investors, contract specialists, directors and business owners. The event featured informative sessions led by The Jorgensen Law Firm PLLC and Hoda Barakat Legal Consultancy, and examined practical tips for drafting and negotiating franchising agreements, existing regulation governing franchising activity in the UAE, and best practices for ensuring that various stakeholders benefit from such agreements.

"While it is important to look at the business issues when considering or entering a franchise relationship, it is also crucial to consider the local law issues to avoid unnecessary legal complications,” said Hoda Barakat, Attorney, Hoda Barakat Legal Consultancy.

“For many business people, a franchise is a great opportunity to work with an established brand while drawing on their knowledge of local consumers. For many franchise companies, a franchise can help extend the reach of their brand without many of the initial costs,” said Paul Jorgensen, Attorney, The Jorgensen Law Firm PLLC, adding that the workshop provided participants with valuable research, negotiating and operating tips to avoid common missteps and to help ensure a long and positive franchise relationship.

For her part, Jehad Kazim, Director of Legal Services at Dubai Chamber noted that the UAE has seen a sharp uptick in franchising activity in recent years as companies look to meet the needs of a fast-growing population. 

“Operating as a franchisee comes with many benefits such as fewer risks and strong brand recognition. However, anyone who may be considering getting into such a business venture should understand the challenges and requirements before making a commitment,” said Kazim, adding that the workshop raised awareness about these matters within the business community. 

Dubai Chamber regularly organises training seminars and workshops to raise awareness about key business trends and laws impacting the emirate’s private sector. These events fall in line with its strategic objectives of creating a favourable business environment and supporting business growth in the emirate. 

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