Towards an Egyptian Franchising Law Based On A Comparative Study Of The Laws Of the United States, China, and Malaysia

Radwa S. Elsaman Ms., American University Washington College of Law

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Submitted in the partial fulfillment of the requirements for the award of an SJD (PhD) degree at the American University Washington College of Law

Abstract

Though the Egyptian market is very attractive for franchisors in the Middle East, Egypt does not enact any specialized laws to regulate the growing business of franchising. The result is that franchising transactions are governed with different laws rather than through a comprehensive specialized statute. The application of such variety of laws and regulations contradicts the very specific nature of franchising transactions that requires high protection for both parties particularly with the fast growth of technology and the complexity of the recent technical aspects of international licensing transactions. This dissertation discusses the possibility of providing a framework to better design future laws governing private franchising industry in Egypt. Examples of the main franchising legal systems are compared to arrive at a model for a franchising legislative drafting project that would work in Egypt. The American franchise law will be discussed as an example of the common law system, the Chinese franchise law as an example of the civil law system, and the Malaysian law as an example of the Islamic law system. The significance of this study is that it helps to find a comprehensive and specialized law to avoid any ambiguities that may arise with regard to franchise transactions in Egypt. That is in addition to the avoidance of losing time referring to multiple laws whether during concluding the franchise agreement, enforcing it or solving any disputes that may arise with regard to such an agreement.