The Legal Nature of the Franchise Agreement and Its Consequences "Case Study: The United Arab Emirates"

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Mohammed A. O. Abdulqawi, Prof. Dr. Ahmad Che Yaacob, Dr. Ahmed Shehab


The study aims mainly to identify the legal nature of the franchise agreement by explaining its concept, characteristics, significance, and identifying its consequences. The study also aims to clarify the basic principles that must be taken into account when drafting this agreement. The basic questions for the study are what is the franchise agreement, what are its provisions, and what are the consequences of its existence and absence. The problem of the study is the ambiguity of the legal nature of this agreement and its various consequences on the contracting parties in terms of rights and obligations. Also, the problem of the study is the lack of clarity of the implications of the termination of the franchise agreement. The researcher uses the descriptive and analytical approach as it is the appropriate approach that achieves the objectives of the study and finds solutions to the study problem. The study concludes with many results, the most important of which are the following. The franchise contract has a set of characteristics and advantages that distinguish it from other contracts. Moreover, the study concludes that this contract has not been legally regulated in most Arab countries, unlike foreign countries in which legislative, jurisprudential and judicial efforts have combined to develop a legal theory that is almost integrated for this type of agreement. The researcher concludes with a set of recommendations. The researcher recommends Arab legislators to work on organizing the provisions of the franchise contract by issuing legislation specific to this contract due to its significance in commercial life. The researcher also recommends legislators on issuing a special system for registering franchise contracts to ensure the seriousness of the technical knowledge contained in these contracts, similar to what is followed in many Countries.

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