Regulation of Franchise Agreements in Ethiopia
No Thumbnail Available
Date
2020-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
Franchising is one of the fastest growing strategies for business expansion. A franchise is a
binding contract between the franchisor and franchisee, in which the franchisor grants the
franchisee the right to implement the former’s business system in exchange for the franchisee’s
payment of fees and royalties. The complex interplay of numerous areas of law in the regulation
of franchise agreements on one hand and the prevalent imbalance of information and bargaining
power between franchisors and franchisees on the other necessitated separate regulation of
franchise agreements in many legal systems. In general, regulation of franchise agreements can
be done through franchise-specific laws (or regulation-based model), general rules of
commercial law (or private law-based model), industry self-regulation, or any combination of
the three models. This research work intends to examine the regulation of franchise agreements
in Ethiopia. After needful analysis, the researcher concludes that the regulation of franchise
agreements in Ethiopia is inadequate, unthoughtful of the unique features of franchise business
relationship and ineffective to give remedy to practical and potential problems. Thus, the
researcher mainly recommends the enactment of comprehensive franchise-specific law.
Description
Keywords
Regulation