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How to Open a Franchise in Dubai: Ultimate Guide

Table of Contents

Dubai is a commercial hub attracting foreign entrepreneurs to open a franchises in Dubai. Various kinds of franchises in Dubai are now in operation across the city enabling owners to gain higher revenues and ROI. The business environment of the country is promising in many ways. It offers zero taxation policies, high-class infrastructure, strategic location advantage, and more.

Mail and packing services, dry cleaning, food delivery, restaurants, fast food chains, and convenience stores are a few of the most well-known franchises. However, there are a number of legal and regulatory requirements that you must be aware of if you wish to open a franchise in Dubai. Any investors looking to setup a franchise will need to get a franchise license in Dubai.

What is a Franchise?

A franchise is a mode of operation in which a franchisor distributes goods or services. This franchisor is required to pay a royalty in return for utilizing the brand’s trade name, identity, business procedures, and trademarks.

The franchisor grants individuals the right to sell its products or services. Moreover, they have to remain subject to certain limitations and comply with the state’s rules and regulations.

Franchise License in Dubai

Your needs will determine the license and setup option that is best for you. The ideal strategy is to collaborate with a local advisory like Avyanco which can also help you assess the cost of franchise licenses in Dubai. They may manage all applications on your behalf and assist you in choosing the ideal jurisdiction, location, license type, and setup for your franchise.

Franchising in Dubai

Opening a franchise in the freezone or the mainland in Dubai is possible. However, you must evaluate your business types, needs, and legal structure, in order to determine the growth opportunities in a certain jurisdiction. The success of your franchise is also based on other factors like the type of license and more.

Dubai is one of the attractive locations for worldwide investors. Potential entrepreneurs looking to open a franchise in Dubai might enjoy various benefits such as zero income tax, corporate-friendly policies, low corporate taxation policies, elite infrastructure, and more. Additionally, they can acquire a franchise license in Dubai in no time with the help of the best business setup advisory like Avyanco in Dubai. We can help you arrange the required documents and apply for a franchise license effortlessly.

Process of Starting a Franchise Business in Dubai, UAE

To open a Franchise in Dubai, you must take into account the following factors:

Step1. Research the Market

You will have the resources you need to effectively build your product and brand if you have a thorough understanding of your product, the competitors, and the market prediction. So, research is essential.

Step 2. Assess the Type of your Franchise

Do you want to establish many company wings for a bigger franchisor, or are you creating a single corporate entity? This will determine how you will approach your new company model, so consider it carefully.

Step 3. Choose the Name for Your Franchise Business

You must select the name of your franchise. Any name submitted to the Department of Economic Development (DED) must guarantee that no profanity, other well-known brand names, or abbreviations are included.

Step 4. Apply for a Business License

You will have to submit all the required documentation in order to apply for and get a trade license for your franchise in Dubai. You will have to submit the below-mentioned documentation:

  • A completed application form
  • Two passport-sized pictures in color
  • A copy of each business owner’s passport

Cost of a Franchise License in Dubai, UAE

A franchise license in Dubai costs approximately 35, 000 AED but the cost may change depending on other different factors such as your business activities and more. To know exactly how much you need to spend on your franchise license in Dubai you can freely contact one of our business setup consultants and will be happy to assist you.

Is Franchise Business in Dubai is a Lucrative Opportunities?

Dubai is a global metropolis with unquestionably one of the fastest-growing economies in the world. This Emirati of contemporary skyscrapers has been drawing attention from across the world in various fields, which has led to a surge in trade in the country.

Franchising is a business tactic that helps a firm expands quickly into new markets. In the past, French and American companies dominated the Dubai franchise market, particularly in sectors like fast food and retail clothes.

The scenario is starting to change as more Asian franchisors move into the market, and opportunities are now there in a number of economic sectors. Franchise businesses are currently active in a variety of industries, including restaurants, fast food, clothing, soft drink bottling, beauty products, photography, hardware stores, office supplies, furniture, toys, vending machines, dry cleaning, auto leasing, and natural health products. However, fast food is still the most popular subset to open a franchise in Dubai.

Types of Franchises in Dubai

Investors and entrepreneurs looking to open a franchise in Dubai have countless options to choose from. In Dubai, there are several different franchise business models including product franchises, service franchises, and trading franchises.

When it comes to opening a franchise in Dubai options are limitless. Such as retail franchises, hospitality and travel franchises, real estate franchises, food franchises, business services franchises, and more. Additionally, there are franchises for eateries and even franchise companies with no storefronts at all.

The top two types of franchises in Dubai are as mentioned below:

Single Unit Franchise

A single-unit franchise is a category that utilizes one legal entity to market the goods and services of the parent firm.

Developed or Multi-Unit Franchise

This kind of franchise manages several outlets under the direction of one business. It may allow the franchisee to open a number of locations under one company’s management.

Benefits of Opening a Franchise in Dubai, UAE

There are countless benefits of opening a Franchise in Dubai including:

  • Thriving economy
  • Brand recognition
  • Business assistance
  • Higher buying power
  • Built-in customer base
  • Lower risk and failure rate
  • Shared business launch costs
  • Access to proprietary products and services

How Avyanco Will Help You in Opening a Franchise Business?

Are you looking for assistance with your visa application process or your franchise license in Dubai? We can help!

Avyanco is a globally trusted business setup advisory working actively across Dubai, UAE. We can eliminate all the worry and difficulty you may have especially on how to open a franchise in Dubai. We have helped hundreds of investors and business owners in managing franchises and small-enterprise operations. We handle everything, from business setup in Dubai to securing the assistance of a Public Resource Officer!

Contact us today!


About the Author


Jashvantkumar Prajapati

(Founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC.)

He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.