How to Set Up a Franchise in Dubai? - Creative Zone

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How to Set Up a Franchise in Dubai?

There are many ways of starting a franchise in Dubai, such as setting up a new company, acquiring an existing company, or merging with another company. However, in the last few years, there have been significant changes in the UAE business environment. Franchise business is introduced as a new method of doing business in Dubai and the rest of the emirates. The top benefits of a franchise business include strong brand recognition, the successful track record of the well-developed brand, and training and operational support. Let us now understand the various steps you need to take to set up a franchise in Dubai.

  1. Conduct In-Depth Market Research:
  • The first step in starting a franchise business in Dubai is to carry out thorough market research on various franchise brands in your chosen industry. If you are undecided on the market, study the most lucrative industries, and select the one that aligns best with your interests, knowledge, and expertise.
  • Once you’ve chosen your industry, select a brand that you trust. Conduct detailed due diligence on the brand and go through the reviews and testimonials from previous and existing franchisees.
  • When considering a franchise of a well-established international brand, you must review the marketing prospectus and the Franchise Disclosure Document (FDD). The FDD outlines the company financials, franchising rules, franchise fees, franchisee responsibilities, etc.
  1. Create a Smart Business Plan:
  • Make a business plan that contains the summary of your franchise business, target market, competitor analysis, market development in your line of service, your core competencies, financial plan, marketing plan, funding alternatives, etc.
  1. Fulfil All Legal Requirements:
  • To set up a franchise business in Dubai, you must consider the following legal requirements:
  • If your franchise business location is Dubai Mainland, you need a local sponsor. Sponsorship is not required to set up a franchise company in a Dubai Free Zone. But then you can operate your business only in the free zone.
  • You can register as a company or a sole trader while starting a franchise business.
  • You also need to obtain a trade license for your franchise business.
  1. Prepare a Franchise Agreement:
  • You need to prepare a Franchise Agreement and get it signed by both parties. A Franchise Agreement is a legal contract between the franchisor and the franchisee that contains all the rules and regulations. It specifies initial/upfront fees, percentage of profit share, intellectual property rights, advertising, and more.
  • A franchise agreement needs to be disclosed before a Dubai Court.
  1. Register Your Franchise Company Type:
  • There are two types of franchises that you can set up in Dubai:
    • Single-unit franchise in which you sell or distribute the products or services of the franchisors through a single company.
    • Multi-unit franchise in which you open several business sites controlled by a single company.
  1. Other Requirements:
  • Visas: You will need to apply for a Visa to work in Dubai. As the holder of a UAE business licence, you can even apply for visas for your family members. The maximum number of visas you can sponsor depends on the size of your franchise company, its setup, and your earnings.
  • Corporate Bank Account: To operate your franchise business, you will also need to open a corporate bank account in Dubai.

Conclusion:

Setting up a franchise business in Dubai is not as easy as you may think. You need to be armed with the right knowledge of the market and the prevailing government rules and regulations to set up a franchise in Dubai. If you are interested in starting a franchise business in Dubai and need more information, then seek professional help from company formation advisors like Creative Zone.

With the help of our company setup consultants, setting up your franchise business in Dubai can become fast and straightforward. Our consultants are fully aware of all the government regulations and legal requirements. We can even offer you the information related to the creation of a franchise agreement.

So, are you ready to set up a franchise in Dubai? Call us at 800 LICENSE (5423673) to speak to one of our franchise business advisors and get started today!


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