Buying a Franchise in Egypt: Who Controls Digital Ordering Accounts?

You may buy the right to operate a branch, only to discover that the franchisor controls the delivery account, order payments and permissions to change the menu. Across a franchise network, standardised systems can improve the customer experience, but they are no substitute for clearly defined financial and operational rights. Before signing, check who has the authority to manage digital accounts, who receives the money and how trading will continue if access is disrupted.

Start with an account map, not a general promise

Ask for a list of every channel that will receive orders for your branch: delivery apps, the brand’s website and app, and any social media accounts used for orders. For each channel, identify the party contracted with the service provider, the holder of the linked bank account and the person or organisation responsible for day-to-day management.

The distinction between a standalone account in your company’s name and a central account in the franchisor’s name covering several branches matters. Either arrangement may be suitable, but they have different implications. With a central account, for example, you may be unable to ask the platform to change payment details or dispute a deduction without the franchisor’s involvement.

Ask for a practical demonstration of the system, not just promotional images. Check what the branch manager can see and do, and whether your branch’s orders appear separately from those of the rest of the network. Also ask whether your access permissions will be available from opening day or depend on an unspecified later step.

Turn the answers into a schedule attached to the contract, setting out the following for each account:

• The contracting party and the party responsible for liaising with the platform.
• Authorised users and their individual permissions.
• The party receiving payments and the bank account into which they are paid.
• The party responsible for subscription fees, commissions and integration costs.
• The process for restoring access if login details are lost.

Settle payment flows and discounts before opening

If the platform pays order proceeds to the franchisor first, you need a clear contractual commitment to transfer the sums due to your branch, not simply an assurance that settlements take place regularly. Specify the settlement date, the accompanying statement, the process for disputing discrepancies and the deadline for responding to them.

Ask for a sample settlement statement showing order values, cancellations, refunds, platform commissions, promotional costs and the net amount transferred. This is not a review of profit forecasts; it is a test of whether you will be able to track the money relating to your operation once trading begins.

Also distinguish between the authority to launch a discount and the responsibility for funding it. Can the franchisor include your branch in a digital promotion without your consent? If the contract allows this, what cost limits apply and how will you be notified? What happens if the platform compensates a customer for a delivery error rather than a mistake in preparing the order?

Negotiate a procedure for resolving disputed amounts without delaying payment of undisputed sums. Ask your accountant to review the documents needed to substantiate sales and commissions, particularly where the platform’s documents are issued in another party’s name.

Understand the legal framework and the limits of data rights

Egypt has no standalone franchise law, no general mandatory disclosure regime specifically for franchising and no general central register of franchise agreements. The relationship is governed primarily by Civil Code No. 131 of 1948 and Commercial Law No. 17 of 1999, depending on the nature of the agreement. If the arrangement meets the criteria for a technology transfer, specific provisions may apply; using standardised software alone is not enough to determine that classification.

When handling customer data, Personal Data Protection Law No. 151 of 2020 is part of the legal framework that needs to be reviewed, depending on the nature of the data and its processing. Do not therefore treat a statement such as ‘the customer database belongs to the branch’ as unrestricted permission to copy telephone numbers or use them for marketing.

Distinguish between your right to operational and financial reports relating to the branch and permission to access personal data or use it for a new purpose. Ask a lawyer to define each party’s responsibilities, the purposes of processing, the rules for sharing and retaining data, and any related legal requirements.

Nor can your contract with the franchisor, on its own, require an external platform to transfer an account or grant permissions that conflict with its terms. Review the platform agreement itself and ensure that the proposed arrangement can be implemented by all parties.

Document continuity of access and procedures for outages

Trading may be interrupted because the employee who registered the account using their phone number leaves, the platform suspends the central account or an integration fails. Ask for a written procedure identifying whom to notify, who is responsible for restoring service, the approved alternative channel for receiving orders and how orders will be recorded during the disruption.

Account management should not depend on a single personal device. Agree on appropriate authentication methods, separate user permissions and the removal of employees’ access when they leave, with a log of significant changes. Specify who pays for technical support and what the branch can fix without waiting for the franchisor’s approval.

Finally, agree how records will be retained and outstanding settlements handled when the relationship ends. Renaming or transferring the account may not be permitted under the platform’s terms, but you can agree on the handover of permitted reports, the handling of returns and the removal of access on a specified date, without retaining personal data without a lawful basis.

The practical takeaway: Do not sign before you have an account map, a sample settlement statement and a schedule of permissions and responsibilities. The right to operate a branch should come with clearly arranged access to its operating tools and the money it is owed, rather than complete reliance on verbal promises.