Franchising is a popular business model in the UAE. Here is the complete 2025 guide to setting up or acquiring a franchise in the UAE.
UAE Franchise Market Overview
The UAE is one of the most franchise-dense markets per capita in the world. International franchise brands in UAE: McDonald’s, Starbucks, KFC, Pizza Hut (all operated by UAE franchisees). Global retail brands: H&M, Zara, Sephora (operated by franchisees or UAE JV companies). UAE-based franchise brands that have expanded internationally: known brands in F&B, education, and services originating from UAE. UAE Franchise Law: currently no specific federal franchise law in UAE (unlike Saudi Arabia which has a specific franchise law). Franchise agreements in UAE are governed by: commercial agency law (if applicable), UAE Civil Transactions Code, and the specific franchise agreement terms.
Franchise Setup Steps in UAE
For international franchisors entering UAE: Step 1 — identify a UAE master franchisee or direct franchisor model. Step 2 — assess whether UAE commercial agency law applies (if the franchisee will be exclusive distributor of the brand — yes, it applies and creates strong franchisee protections). Step 3 — negotiate franchise agreement (master franchise fee, royalty, territory, training, supply chain). Step 4 — franchisee sets up their UAE company (mainland LLC for most retail/F&B franchises). Step 5 — obtain relevant approvals: trade licence, municipality permit (for F&B), health authority approval (for food businesses), and sector-specific permits. For UAE franchisees acquiring an international franchise: AED 50,000-500,000+ initial franchise fee (depending on brand). Plus: setup costs (fitout, equipment), working capital. Total investment: AED 200,000-2,000,000+ for a UAE F&B franchise unit (depending on brand, size, and location).