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Current Laws Governing Franchise Agreement in Jordan

Author

Listed:
  • Mohammad Khasawneh
  • Nurli Yaacob
  • Rohana Abdul Rahman

Abstract

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.

Suggested Citation

  • Mohammad Khasawneh & Nurli Yaacob & Rohana Abdul Rahman, 2016. "Current Laws Governing Franchise Agreement in Jordan," Asian Social Science, Canadian Center of Science and Education, vol. 12(4), pages 1-45, April.
    • Handle: RePEc:ibn:assjnl:v:12:y:2016:i:4:p:45
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    References listed on IDEAS

    as
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    2. Blair,Roger D. & Lafontaine,Francine, 2011. "The Economics of Franchising," Cambridge Books, Cambridge University Press, number 9780521775892.
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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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