Legal Framework of Franchise Agreement Compared to the Legislation Status in Yemen

Abstract

Franchise is a modern style created as a need for trade to increase projects size. It differs from the authorization to use the trademark because the latter only requires licensing of the licensee's trademark, unlike the Franchise contract, in which it goes beyond the need to convey technical knowledge from Franchisor to Franchisee. In Yemen, Franchise has not received any private legal legislation till the moment, necessitating applying contract articles, contracts general principles and some provisions embodied in the texts of other laws that are suitable to be applied to some of its issues and provisions, in addition to what is inspired by provisions in foreign laws. This study aimed to distinguish franchise agreement from similar contracts that have become common in the commercial field; to identify important legal and practical problems facing franchise agreement as well as suggest solutions to address such problems; and to propose regulatory principles that can be used by the Yemeni legislator in the future when enacting laws that govern franchise agreement. To achieve these objectives, the study followed a descriptive analytical method. The study concludes that the franchise agreement has not received any special legal legislation in Yemen so far; and also the franchise agreement is characterized by a complex nature and has special features.

Keywords: Franchise, Trade mark, Technical knowledge, Franchisor, Franchisee.