Franchise Code of Conduct United Arab Emirates

What is a franchise?

A franchise is a way to sell goods or services through the collaboration of two financially and legally separate parties: the franchisor and the franchisee. The franchisor created the business, including its intellectual property, methods and systems, and transfers that knowledge to the franchisee through documentation, training and ongoing support for the term of the agreement. In return the franchisee usually pays an initial fee and ongoing fees for support and brand development.

Our franchisor code

1. 01Have sufficient knowledge and experience of their business before creating a franchise network.
2. 02Have enough working capital and financial stability to franchise the business successfully.
3. 03Own, or have the legal right to use, the intellectual property, trade name and trade mark.
4. 04Never include misleading statements in franchisee recruitment materials.
5. 05Make sure any statements about earnings potential are not misleading, explain how figures were produced, and clearly identify assumptions.
6. 06Make best endeavours to recruit only people who appear suitable to run the franchise.
7. 07Use a franchise agreement that complies with national law and clearly sets out both parties' initial and ongoing obligations.
8. 08Deliver the training and support set out in the franchise agreement and operations manual.
9. 09Never discriminate in providing services or selecting franchisees, and comply with all anti-discrimination law.
10. 10Notify the franchisee in writing of any breach of the agreement and allow a reasonable time to remedy it.
11. 11Always try to mediate a dispute before any legal action.
12. 12Act in good faith in all dealings with the franchisee.

Our franchisee code

1. 01Be honest in every disclosure when applying to join, including financial position, health and anything that could affect running the franchise.
2. 02Respect any pre-contract terms, including the franchisor's right to recover information costs and reasonable non-compete and confidentiality clauses.
3. 03Provide the reporting and management information required by the franchise agreement and operations manual.
4. 04Always try to mediate a dispute before any legal action.
5. 05Comply with all other obligations under the franchise agreement and operations manual.
6. 06Respect all applicable restrictions after the franchise agreement ends.
7. 07Use all reasonable efforts to promote, grow and maximise the profitability of the franchised business.
8. 08Act with integrity and honesty in running the franchise.
9. 09Act in good faith in all dealings with the franchisor.