Abstract
<p>Currently there are more than 150 local and international franchise businesses operating in Jordan. Franchise business in Jordan has been a crucial investment market contributing to the country’s Gross Domestic Product (GDP) and developing its economic growth and trade. Nevertheless, legal challenges to the investors which have existed may hinder them from opening up a franchise business in Jordan. One of these challenges is the lack of specific legal framework regulating franchise business. Jordanian legal system does not have specific legislation to regulate the franchise agreement (which is known as the “license agreement” in Jordan) between a franchisor and a franchisee. The lack of specific legislation may deter or at least slow down the progress of foreign and local investors in setting up franchise businesses in Jordan, as they could not reasonably anticipate the relevant laws and regulatory enforcements relating to franchise. Therefore, this paper examines the current laws and regulations governing franchise business in Jordan. The paper concludes that existing laws affecting franchise in Jordan fail to address comprehensively the legal aspects of franchise. Thus, there is a dire need for specific legal framework to govern franchise business in Jordan.</p>
Highlights
Jordan is a country located in the Middle East, with a size slightly smaller than the state of Indiana, in the U.S It borders Saudi Arabia, Israel and Iraq, occupies a total of 89,342 square kilometers and contains a total population of 6.5 million with a 0.14% growth rate
The lack of specific legislation may deter or at least slow down the progress of foreign and local investors in setting up franchise businesses in Jordan, as they could not reasonably anticipate the relevant laws and regulatory enforcements relating to franchise
Among the basic of franchise contract identified in the above said laws includes granting license to franchisee to use the franchisor trademark as well as getting protection against a third party of using the trademark without license, confidential information related to the franchise and innovation activities that can be made by both the franchisor and the franchisee, these provisions can be applied on every contracts including franchise contract
Summary
Jordan is a country located in the Middle East, with a size slightly smaller than the state of Indiana, in the U.S It borders Saudi Arabia, Israel and Iraq, occupies a total of 89,342 square kilometers and contains a total population of 6.5 million with a 0.14% growth rate. Several shopping malls have been recently launched in the capital in the past few years, which incorporated more new franchises, with others still under construction This includes plans for establishing outlet stores in Amman’s southern suburbs. Suffice to say that franchise in Jordan is a crucial investment approach that contributes to the country’s Gross Domestic Product (GDP) and helps in developing its economic growth and trade. It allows better planning and maintains foreign investments. This has motivated the authors to examine the laws and regulations in relating to franchise agreement in Jordan in this paper
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