Support Obligations in Franchise Agreements in Lebanon: A Practical Guide

When you decide to franchise an established business in Lebanon, promising the franchisee training and ‘ongoing support’ is not enough. Both parties need to know what will be provided, when, through which channels and what happens if that assistance falls short. Setting out these details in a contractual schedule makes support obligations enforceable and easier to monitor. It also establishes a clearer relationship within the franchise network, rather than relying on goodwill or constant access to the founder.

1. Understand where support fits within Lebanon’s legal framework

Lebanon has no comprehensive franchise-specific law, nor a dedicated regime requiring a standard disclosure document or registration of the franchise agreement with a specialist franchise authority. The agreement is governed primarily by the Code of Obligations and Contracts, alongside commercial law, intellectual property and competition rules, and other mandatory provisions relevant to the relationship. This does not remove any commercial registration or licensing requirements for the business activity itself.

Whether Legislative Decree No. 34 of 1967 on commercial representation applies to a particular relationship requires an examination of its substance and legal classification; not every franchise agreement should automatically be treated as commercial representation. Lebanese legal scholarship and case law have addressed the distinction between the two relationships, making review by a Lebanese lawyer important before adopting a contract template.

The transfer of practical know-how and provision of ongoing assistance are distinguishing features of a franchise relationship. However, do not assume that the law specifies the number of visits or response times for breakdowns. These elements need to become written obligations, without presenting them as a guarantee of the franchisee’s profitability or relieving the franchisee of responsibility for managing the business.

2. Turn ‘support’ into specific services

Start by listing the assistance your team can realistically provide. Distinguish between pre-opening support, launch assistance and ongoing support. For each service, record the expected deliverable, who is responsible and what information they need from the franchisee.

The support schedule could include the following:

• Before opening: reviewing the fit-out plan, assessing training needs and checking that systems are ready, within the limits of the franchisor’s expertise.
• At launch: providing an on-site support team or remote assistance, with the duration and tasks clearly defined.
• During operations: reviewing performance indicators, answering technical questions, and arranging follow-up visits and agreed additional training.
• When updating the concept: explaining changes, making new materials available, and setting implementation deadlines and allocating responsibilities.

Also distinguish between services covered by the agreed fees and additional services requiring a quotation and prior approval. Do not leave travel, training for replacement staff or exceptional visits to become unexpected charges. Make clear, too, that a franchisor’s review of the fit-out, for example, does not replace official approvals or the responsibilities of licensed professionals.

3. Set response procedures that match your team’s capacity

Promising an immediate response to every request is unrealistic, particularly as the franchise network grows. Categorise requests by their impact: an incident affecting customer safety, a fault preventing sales, a routine operational question or a suggestion for improving service. Then specify the communication channel, support hours and alternative contact for each category.

Distinguish between acknowledging receipt of a request, starting work on it and resolving the problem. The franchisor can commit to a deadline for beginning diagnosis, but a resolution may depend on an internet provider, a maintenance company or imported parts. Set out how the franchisee will receive progress updates and what temporary workaround is available, rather than promising a resolution deadline beyond your control.

Test the proposed obligations against your team’s work schedule before signing up to them. Who covers the training manager’s absence? Who responds outside working hours if emergency support is included? In Lebanon, it is useful to specify alternative communication methods during power or internet outages, without treating every outage as automatically excusing performance.

4. Define the franchisee’s duties and the limits of the franchisor’s involvement

Support is a two-way relationship, not day-to-day management of the outlet on its owner’s behalf. Require the franchisee to appoint a contact person, attend training, provide accurate data, report problems promptly and allow agreed access to relevant systems and records.

Also define the limits and purpose of access to employee and customer data, and who is authorised to access it, taking account of applicable personal data rules. A support request should not become a reason to exchange information that is unnecessary for resolving the issue.

At the same time, avoid wording that allows the franchisor to change its core obligations through a unilateral message or operational update. Specify which procedural matters may be updated and which changes require written agreement, particularly where new equipment or costs are involved. Make the order of precedence between the agreement, support schedule and operations manual clear in the event of a conflict.

5. Document delivery and address failures in stages

Use a central request log recording the reporting date, issue category, actions taken, person responsible and outcome. After each visit, send a report distinguishing between recommendations, optional improvements and corrective actions required under the agreement.

Establish an escalation process that starts with the support contact, moves to management and then follows a contractual procedure for addressing persistent failures. A lawyer should review the wording of notices, remedy periods, consequences of breach and dispute resolution provisions; do not assume that a delay automatically entitles either party to suspend payments or terminate the agreement. Review recurring problems as well, since repeated similar requests may reveal gaps in training rather than individual failings.

Practical takeaway: Before granting a franchise, prepare a support schedule that answers five questions: what do we provide, who provides it, when, what is required from the other party and how do we address failures? Then test your ability to deliver it and have a Lebanese lawyer review it before signing.