How to Open a Franchise Business in Dubai, UAE?

What is Franchising?

Franchising is a method of doing business for the purpose of getting expansion and distributing in markets. It is a steadily growing system that accounts for more than one-third of the retail sales of the world. A franchise is like a license for rapid expansion.  Recognition of a brand offers a consistent method for delivering the brand‘s promise. They are based on a financial relationship which is between the franchisor and franchisee.

There are various different ways of company start-ups in the UAE. Setting up a new firm and buying an existing company or merging with another company is among the most employed ones. These are some of the most usual ways of opening a Dubai company. However, from the last few years, significant changes have taken place in the UAE business environment. The franchise business setup in Dubai is one of these changes.

Benefits of Franchising Business in Dubai:

The major benefit of opening a franchising business in Dubai is the freedom of self-employment. This freedom is tempered with the immense knowledge that the owner has invested in a proven system and also has the proper training, support, and encouragement of the franchisor and other franchisees. A franchise offers a semi-monopoly environment to conduct business in a particular zone. Typically, there exists an informed ready-made customer base. Competitors will be there for sure but the franchisee will be granted a sole franchise for a given area and will be offered client listings or job sheets. Most importantly, being a part of a franchise makes sure that the franchise is a part of an instantly recognizable firm. Also, it becomes a part of the expectations of the product or service that a brand brings and the reputation which is achieved by the brand over time.

A franchise provides the franchisee the capability to capitalize on the know-how and systems which prove to be successful. Other advantages of setting Franchise Business in Dubai include:

  • Freedom of employment
  • Semi-monopoly because of defined territory / geographical boundaries
  • Proven product or service outcomes
  • Proven brand, trademark, recognition
  • Industry know-how
  • Shared marketing, advertising, business launch campaign costs
  • Reduced risk of failure
  • Bulk buying advantages
  • Access to proprietary products or services
  • On-going research and development

How to Open a New Franchise Business in Dubai?

For doing franchise business in UAE, there is no special legislation. There are general contracts and commercial laws which apply to franchise agreements. The law of UAE mandates that only the citizens of UAE or corporations who are completely owned by UAE citizens or those with a UAE partner or sponsor are allowed to conduct operations. Businesses which are located in the multiple free zones are exempt. However, the UAE has strict rules and regulations regarding new business registrations. Franchising is a process that combines the entrepreneurial passion of a small businessman with the experience and resources of a big and successful corporation. This organizational structure is very efficient and provides you maximum advantages in addition to the support you get from the franchisor.

The model of the franchise is a famous method for overseas companies to enter the UAE market. While retaining control over their brand. Having more than 18 years of experience in the UAE company formation sector, we assist national and international investors to start franchises in Dubai with complete business setup solutions. Business Link UAE is one of the well-known legal consultancies to assist with company registration, visas, and related PRO services in the UAE. For any query, write to us at or call at +971 43215227.