Franchising contract in Egypt

The contractual tool called franchising / commercial affiliation falls within the broader category of distribution contracts, and can be defined as a relationship between autonomous and independent subjects, i.e. the franchisor and the franchisee, with whom a collaboration is established in order to distribute goods and / or services. Even the franchise agreement, like the distribution agreement, is not regulated by law.
Commercialization in Egypt through franchising was made more interesting following Egypt's accession to the Madrid Convention on industrial and commercial trademarks and the passing of Law 13/6/2002 on the protection of intellectual property rights.
The purpose that drives a company to make use of this contractual tool in Egypt lies in the possibility of having an important presence in the market, for example through the creation of different points of sale for products with the same image (brand diffusion) and through a distribution of goods with the same characteristics and qualities. On the other hand, the franchisee, while carrying out an independent activity, can take advantage of the technical assistance of the franchisor and use its "proven" distribution network and its well-known image. The franchisee must pay the franchisor, for the use of the brand, the know-how, the distribution and organizational network, a fee, and cannot assign the contract unless with the written consent of the franchisor.
The clauses characterizing a franchising contract, in addition to the normal provisions such as the premises, the indication of the parties and the subject of the contract, also regulate the license of the franchisor's trademark and know-how, as well as the obligation, on the franchisee, to maintain uniformity with the franchise network.
Other clauses provide for the setting up of the points of sale, resale prices, secrecy, non-competition, exclusivity, the mutual obligation of information and every modality on the orders and supply of the goods covered by the contract, including delivery methods and the guarantee for any product defects.
Finally, the contract must regulate the duration of the relationship and the effects of its termination, as well as the circumstances that determine the early termination of the contract and the severance indemnity, as well as, of course, the indication of the applicable law and the competent court (or of the 'arbitration).