Frequently Asked Questions

If you have any other questions about franchising in the Middle East that you would like us to answer please complete email Mark.Abell@ffw.com or David.Bond@ffw.com

Please click on the titles of the questions below to see the answers.

Do my franchise agreements need to be specific for each Middle East country in which my franchise operates?

I am the franchise director of a US based fashion retailer. We are currently looking at expanding our retail concept into the Middle East. Having spent a substantial sum of money on getting an international franchise agreement drawn up by our US attorneys, which seemed to me to be a necessary investment. I have been shocked to learn that this agreement will have to be completely redrafted by lawyers in each of our proposed Middle East territories for franchisee recruitment. Is this really necessary?

Is exclusivity vital?

I am considering taking on the master franchise for a cleaning franchise. I am concerned that I will not be granted an exclusive territory. Should I refuse to take the franchise unless I am granted exclusivity?

Is it usual for a master franchise to be required to service pan Middle East accounts of the franchisor at a lower royalty rate?

I am taking the master franchise for Oman of a Business Centre franchise. Under the agreement I will have to service what are known as "Middle East accounts" which have needs in Oman. Middle East accounts are accounts with Middle East wide companies negotiated by the franchisor. I am concerned that money I will receive from these Middle East accounts will be approximately 25% less than that which I will make on other accounts which I obtain for myself within my territory. Is this normal? Should I accept it?

Can UK franchise agreements be used for Middle East States?

I am the CEO of a small UK retail franchise. I have been approached by a large Kuwaiti company which wants to try out the concept in Kuwait. There will be no upfront fee and so I want to keep the costs down. Is it possible to use my UK franchise agreement in Kuwait?

Can price controls be imposed on franchisees in the Middle East?

I am the managing director of a photo processing franchise. Our business is driven by low pricing. Recently some of our franchisees in a variety of Middle East states have refused to stick to this low price policy. Can I force them to charge the low prices which are so essential to the success of the whole business? My master agreement says that this is possible but the master franchisees are refusing to do so.