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Arab Franchise World
Economic Impact & History
Arab Franchisors
Arab Franchisees
Arab News & Issues & Research
Arab Franchise Business Network
Economic Impact & History

INTRODUCTION
"History of Franchising worldwide and in Arab World in particular"
WORLDWIDE: Franchising is a new word that has been introduced into the Arab world for approximately 25 years, when the major western chain of food stores, such as Mc Donald's and Burger King and others refused to go into partnership with the Saudi Arabian and the gulf counter parks period, up till this time the exclusive representation and exclusive distribution of goods and products such as cars, televisions of well known brands, was the way that business was dealt between the Arab world and the west.
However, if we examine the history of franchise which has to be based on the franchisor having something that he or she can grant a license to someone else being the franchisee in exchange for a certain amount of money and royalties over a certain period of time, then franchising probably began as early as 200B.C in China. When according to reference (number) a local businessman named Lo Kass began operating several retail units in China. However Franchising possibly started even earlier in China period. There also an evidence of franchising in England in the middle ages, when the Monarchs granted licenses to his Barons, Knights to exploit the land under their control (franchisor). In exchange for these land grants the barons and knights, where require protecting the territory, establishing an army and collecting tolls and taxes. A portion of which was given to the Monarchs. In England and Europe franchising was used commercially in the tavern and brewery industries. Pub owners, in exchange for financial assistance from the breweries, agreed to sole purchase agreements with the breweries. The breweries did not exercise any controls over the operation of the local tavern except for the sole purchase arrangement.
1951-USA - As to the United States franchising as a business concept was transplanted there by Isaac Singer, when he became the first American product name franchisor when he began to sell, to traveling independent salesmen the rights to sell his sewing machines to end users. So Singer sewing machines in 1851 began the franchise system in the United States.
Also the earliest known restaurant chain in the United States was founded in 1850's by Frederick Henry Harvey, who opened his first restaurant in 1852, and granted franchises accordantly to others. By 1887, there was a Harvey House restaurant every hundred miles along the 12,000-mile-long Santa Fe rail road truck.
However most recognized worldwide is Kentucky Fried Chicken, which in 1830 was established to be followed by Dunkin Donuts established in 1950, Burger King established in 1954, and McDonald's, established in 1955. So today, in the 21st Century Franchising is one of the best and most successful ways to get into business for yourself and as far as a franchisee and to be able to become a franchisor and expand without using your own capital.
ARAB WORLD: So, also franchising is very young in the Arab world, it is growing at a very rapid and impressive pass, and more and more western companies are granting franchises to Arab franchisees, also more and more local Arab businesses are opting to become active franchisors and granting franchises to others in the Arab world.
This is the reason for the establishment of the Arab Franchise Association in 2010 and the clear need to have a United Arab Franchise market composed of Arab Franchisors and Arab Franchisees and Arab Franchise Experts only, thus steps to organize it within an association where successful and the Arab Franchise Association has been in Beirut Lebanon.
Today, Lebanon is the most active Arab country in the fields of franchising having established the local Lebanese Franchise Association back in 2006. Other Franchise Associations have been established such as in Egypt and also the Franchise Federations of the Mediterranean and the most recent Franchise Association of the Middle East.
However, one of the major dangerous that can destroy franchising in the Arab world has been the lack of any legal legislation dealing directly with Franchising in any of the Arab countries. Lebanon is one of those countries where a draft of legislations is now in the house parliament and hopes for passing such a law, are quite good providing proper lobbying can continue.
To ensure that Franchising continues to grow in the Arab World, IT IS A MUST that the legal profession be able to have access to "The Legal Contract for any Franchise Agreement" which is what this guide publication by FTI is intended to do and to look at the legal of franchise contract, for any franchise agreement both internationally and as it apply to the Arab world. This publication includes the actual legal contract, exercises, case studies, and checklists.
It is our sincere hope that you will benefit from this publication, and if you wish to have further understanding you may choose to attend one of our seminars as well and in particular "The Legal Contract for any Franchise Agreement" in September 2010. For any further information please contact Franchise Training Institute at Gefinor Blg, Clemenceau Street, and Block B 303, Telephone number 01- 740694 or 70-201065, or send an e-mail to info@franchisetraining.pro, or visit our website at www.Franchisetraining.pro
Yours sincerely
Dr Khaled A. Taki
CEO- Franchise Training Institute
Established 2009
Arab Franchise Association
Friday, 19 Jul 2019 21:09
 
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