A Step-by-Step Guide to Opening a Franchise in Dubai

Dubai is a homeland for many businesses. Every year, thousands of entrepreneurs from all around the world come to Dubai to give life to their dreams and turn their business ideas into reality. But what if you do not have an actual business idea to make a fresh start? Well, opening a franchise in Dubai can still help you live your dream of running your own business. All you need to do is pick up a franchise, make an investment, and start trading.

This article entails all the details related to the franchise business in UAE along with some of the best sectors to start out with.

What is a Franchise?

A Franchise system is when an organization (franchisor) finds a partner (franchisee) to recreate its business model and distribute its goods and services. The franchisee pays a royalty to start a franchise business in the brand’s trade name, trademark, market privileges, popularity, and business practices.

Different types of Franchise –

1. Single-unit franchise - Only one legal entity offers the parent company’s goods and services
2. Multi-unit franchise – Management of several outlets under the direction of a single business.

A step-by-step guide to start a franchise business in UAE

You generally need skill, passion, and drive to run a successful franchise. However, opening a franchise in Dubai can be quick and easy if you are equipped with the right knowledge and support. Company setup experts at Shuraa can assist you in establishing your franchise business in UAE effectively.

To start a franchise business in Dubai, this is what you need to do -

Conduct market research

The UAE franchise market is diverse and massive. Hence, it is necessary to conduct thorough research before getting into this business, especially if you are unclear about this market. For instance, find the most profitable market and see if its suits your expertise and knowledge. If you have a industry in your brand, then choose a brand that you are most certain about. Also, consider taking reviews and testimonials from other franchisees.

Understand the types of franchises available in the UAE

You need to understand and finalize the type of franchise setup you want to get into. Mainly, there are two types of franchise setups available in the UAE – Single Unit Franchises and Multiple Unit/Developed Franchises.

Create a business plan

A business plan is fundamental when starting a business in the UAE. The plan must include the business activities, competitor analysis, target market, core competencies, and the overall summary of the project. In addition, you must also have a marketing plan, financial plan, and any funding alternatives for your franchise business. This way you will be aware of all the associated risks and be able to protect your investments.

Find a suitable location

An area with an influx of customers and complementary businesses around can help you get good business for your franchise. Often, franchisors outline certain parameters for your franchise business territory and assist with site selection. In such cases, you will need their approval to move forward with your business in the chosen site.

Get a business license

Several factors determine the type of business license you can get for your franchise business. For instance, doing business in Dubai Mainland is different from doing business in Free zones. Similarly, the type of business activity and the number of visas or shareholders will affect the type of license you get.

Working with a professional consultant like Shuraa can help you find the correct site, license, and structure that fits your needs.

Apply for a trade license

You would require a trade license to operate your franchise business in UAE. The application method can vary based on the jurisdiction you choose. Shuraa consultants will handle this situation for you and deal with authorities to ensure everything is in order.

For a trade license, all you need to do is submit your passport copy and recent photographs to Shuraa consultants and they will further take care of the rest.

Prepare a franchise agreement

A franchise agreement is basically a legal contract between the franchisor and a franchisee that contains all the information, rules, and regulations associated with the franchise business. For example,

• Duties and expectations
• Franchise fee
• Duration of the agreement
• Quality assurance and training
• Site selection
• Dispute resolution
• Limitation of liability
• Percentage of profit share
• Advertising
• Intellectual property rights

Before signing the agreement, both parties must present it before the Dubai court to confirm the opening of the franchise in the United Arab Emirates. Since it is a binding document, make sure that all the vital information regarding the business is clearly specified in the agreement.

Apply for a work visa

Apart from a license, you will also need a visa to work and live in Dubai. A UAE visa enables you to sponsor your family or staff. However, the size, profits, and setup of your franchise business will determine the number of members you can sponsor.

Connect with the business advisors at Shuraa and learn how you can acquire a work visa in Dubai and sponsor your dependents accordingly.

You may like it: How to open a Software Company in Dubai?

Open a bank account

First, learn about the various financial institutions available in the UAE before choosing one for your corporate bank account. This will help you determine which bank is capable of fulfilling your requirements and offer you long-term benefits.

The banking industry of UAE maintains a high level of honesty and privacy. It is well-known for its most professionally suited corporate banking services. Shuraa consultants will help you find the best banks that will go well with your business requirements and also help you in establishing a corporate account in one of them.

Reasons to open a Franchise in Dubai

Both local and foreign investors enjoy the freedom of self-employment in UAE. It’s the flourishing economy that attracts several international corporations to this country. Moreover, the government also encourages investors to invest in the franchise system and take advantage of the riches and resources in Dubai.

Additionally, there are several reasons to consider opening a franchise in Dubai -

Shared costs

The primary reason for owning a franchise is that you do not have to worry about the major costs, such as advertising and marketing costs, business launch campaign costs, etc. The franchise already has a market set apart, and being a partner you will only make the brand more closer and accessible for the customers. That means you do not have to worry about designing a logo, fixing a price for the products, writing sales literature, and other significant tasks.

Business planning becomes a little easier, marketing budget gets reduced, thereby helping you save more money and assess risks better.

Booming economy

The rich natural resources available in UAE make it one of the most powerful economies in the world. Moreover, the country has one of the most significant average monthly salaries and a very high per-capita GDP. Furthermore, the tourism industry adds in extra to its thriving economy. Within all these privileges, it's only ideal to invest in Dubai and achieve business success.

Ready market

Over 80% of the UAE comprises of urban population. Some of the majorly populated cities are Dubai, Abu Dhabi, Sharjah, and Ajman. This indicates abundant networking opportunities. So, if you choose to open your franchise business in Dubai, it will boost your market exposure to millions of people and thus you can take advantage of such a large audience.

Zero taxes

Free trade zones in Dubai facilitate franchise business opportunities. From 100% foreign ownership to zero taxes, free zones help investors in saving more money and reinvest it in the business.

Other added advantages:

• Immediate brand recognition
• Existing customer base
• Active target audience
• Easy to hire top talent
• Readymade support system
• Full training, marketing materials, equipment, and more
• Freedom of employment
• Industry knowledge
• Access to registered products or services
• Proven brand recognition and service outcomes
• Less risk of business failure

Popular franchise sectors in UAE

• Food & Beverage
• Retail
• Health & Fitness
• Education & Training

Choose the right franchise with Shuraa Business Setup

Shuraa professionals will assist you in opening a franchise in Dubai and ensure you get everything right. Speak to their experts today!

Call: +97144081900

WhatsApp: +971 50 777 5554

Email: [email protected]