Franchise Agreements in Lebanon: 2026 Guide Highlights Currency Risks

A legal guide published by Global Law Experts on 27 October 2026 has brought renewed attention to the contractual challenges facing Lebanon’s franchise sector, particularly currency risk, the enforceability of financial obligations and termination provisions. The guide describes a market governed not by a single franchise law, but by a range of legal rules, making careful contract drafting and a review of obligations essential before investing.

A layered legal framework, not new legislation

The guide explains that Lebanon has no single, comprehensive law governing franchise relationships. Instead, these relationships draw on the Code of Obligations and Contracts, commercial agency and distribution rules, consumer protection legislation, and provisions covering intellectual property and the registration and protection of trade marks and trade names.

Among the legislation discussed are Legislative Decree No. 34 of 1967, as amended, concerning protections historically applied to exclusive commercial representatives, and Consumer Protection Law No. 659 of 2005. The guide stresses the need to check any legal provisions relied on when drafting an agreement against the legislation in force as published in the Official Gazette, with advice from local legal counsel.

The guide’s publication therefore does not mean that a new franchise law has come into force. Its significance lies in offering an updated legal assessment of the challenges facing franchisors, prospective master franchise investors and legal advisers considering entry into the Lebanese market. Identifying the rules applicable to a particular contractual relationship requires examining its substance and terms, rather than relying solely on the label given to the agreement.

Currency and fees are central to negotiations

The guide places currency risk and the enforceability of obligations among the leading issues affecting franchise agreements in 2026. It links these concerns to the depreciation of the Lebanese pound and restrictions on the movement of funds, which have shaped the drafting of fee provisions, payment guarantees and grounds for termination.

This matters directly because a franchise agreement does more than grant the right to use a brand. It also creates financial obligations, and both parties need a clear understanding of how those obligations will be met. According to the guide, reviewing payment terms and safeguards for amounts due has become a core part of structuring franchise relationships in Lebanon.

In practical terms, investors can turn these issues into questions to ask before signing: in which currency are fees denominated? How must payments be made? What does the agreement provide if payment cannot be made in the agreed manner? These are points for review and negotiation, not uniform legal requirements imposed on every agreement.

Termination clauses should also be read alongside the financial provisions, rather than in isolation. The guide treats fee arrangements, payment guarantees and termination triggers as interconnected issues affected by monetary conditions and the ability to fulfil obligations. Their interaction within the agreement therefore needs careful scrutiny.

Standardised disclosure is not automatic

The guide notes that Lebanon has no national franchise-specific registration system comparable to those linked to pre-sale disclosure in some other countries. It also explains that Lebanese law does not require a mandatory franchise disclosure document, making international best practice important in structuring the information exchanged before an agreement is signed.

This point echoes an article published by QFA Lebanon on 21 October 2026 about personal management requirements when buying a franchise. That article explained that, without a franchise-specific statutory disclosure regime, investors do not automatically receive a standardised document under such a regime setting out their management obligations.

This should not be interpreted as an exemption from general legal rules, commercial and tax obligations, or intellectual property protections. The guide emphasises that the enforceability of a franchise agreement depends heavily on the quality of the contract and compliance with the ordinary obligations applicable to local business activity.

For prospective franchisees, the practical step is to request written clarification of information that could influence their decision, including their management role and financial commitments. It is better to resolve ambiguity during negotiations than to assume that a standardised document will settle it later.

Review brand protection and termination together

The guide also addresses intellectual property as part of the framework governing franchise relationships, including the registration and protection of trade marks and trade names. It identifies the enforceability of intellectual property and termination provisions, alongside payment obligations, as matters requiring particular care in Lebanon.

Reviewing fees alone is therefore not enough to assess an agreement. A legal review should also cover the scope of permitted brand use, each party’s obligations and the terms governing the end of the relationship. This is a contractual recommendation drawn from the guide’s themes, not an announcement of new regulatory requirements.

Practical takeaway: Before buying a franchise in Lebanon, review the agreement with local legal counsel and request written clarification of the currency, payment, management, brand protection and termination provisions. The absence of a single franchise law makes contractual clarity more important; it does not remove the application of general legal rules.