Franchising System (Law) Order 1976994 (Essay Sample)

Franchising System Student’s Name Institutional Affiliation Course Number and Name Instructor Name Date Table of Contents TOC \o "1-3" \h \z \u Introduction PAGEREF _Toc73708713 \h 2How Kuwait law regulates the franchising system PAGEREF _Toc73708714 \h 3i)Market entry PAGEREF _Toc73708715 \h 3ii)Intellectual property for franchising agreement PAGEREF _Toc73708716 \h 4iii)Registration of franchising PAGEREF _Toc73708717 \h 5iv)Trademark regulations PAGEREF _Toc73708718 \h 6v)Brand protection PAGEREF _Toc73708719 \h 7vi)Dispute resolution between the franchise contractual parties PAGEREF _Toc73708720 \h 8vii)Franchising regulations in the Gulf Corporation Council (GCC) PAGEREF _Toc73708721 \h 8Conclusion PAGEREF _Toc73708722 \h 9References PAGEREF _Toc73708723 \h 10 Introduction Expansion of businesses has been determined by how the brand owner and distributors link during the distribution of goods and services. Through franchising, firms globally have been able to make advancements in various business sectors. Franchising is the system whereby the expansion of business and goods distribution is based on the relationship between a brand owner and the local operator to expand skillfully. Franchising generally happens where there is a franchise and franchisee, whereby the franchisor has little control over the management role. A bunch of laws regulates the whole franchising system to make sure that equity is attained. The paper signifies the franchising system in Kuwait and how the government controls the system. By depicting various components like; intellectual property (IP) for the franchising system agreement, market-entry, registration of franchising, trademark regulations, brand protection, dispute resolution between the parties involved, and the use of franchising regulations, the paper explains the law entitled to the system. How Kuwait law regulates the franchising system The Kuwait government has set regulations in making sure that the franchising exercise goes to help firms develop but not for personal importance. The system is defined to operate based on growing relationships between franchise and franchisee through the set rules. The franchise agreements in Kuwait help in regulating both domestic and international franchising. The Kuwait jurisdiction has made sure that payments for the activity are made to bring a positive overview of the area's businesses. The franchising has been regulated in specific components like: * Market entry The Kuwait government has brought various developments in the market franchising for the past few years. The market entity for any business will compose of certain features which are done through the franchising system. The Kuwait government has enacted Executive Regulations, which was part of Commercial agency law from 2016. Through the Executive regulations and Commercial Agencies Law, specific requirements and obligations are made explicit for franchising activity (Dawd et al., 2018). The agency law for regulating the franchising system makes agent and franchisee the same where no varying treatment is given differently. The law also states that the local agents are not allowed to be distributors and providers. The Agency law has said that the executive regulations for the market entity should be issued within the first six months for beginners. The agency law also states that the agreement should only be registered with the Ministry of Commerce and Industry in Kuwait via the Agency department when doing franchising. After the registration of the deal, legality is provided, and in doing so, the local party is protected fully. The registration activity is essential since the court can dismiss any false claims rendered by the parties involved in franchising. In the failure of appointing a new agent within the first six months, nullification of the agreement is done by the court to reduce piracy. Therefore, the activity has been done to make sure that the marketing industry in Kuwait is not driven into messes by poor franchising. * Intellectual property for franchising agreement Intellectual property refers to a name given to different creation types of mind, including musical, artistic works, and images. The intellectual property laws are done to regulate such creations in making sure that during the franchising process, the rights of every party are preserved. The rules are used to control trademarks, patents, and copyright, whereby piracy is highly prohibited. Under the law regulating intellectual property, the owner of media content is entitled to some rights that the government or franchising client cannot bend. In Kuwait, the franchisee is given overall rights to use the franchisor’s property to conduct franchising. In contrast, the owner’s property by a third party is highly prohibited by the law. Therefore, through franchising intellectual properties, the property owner is served with enough protection to ensure that good terms and business development are enhanced. According to the law, there is no limitation to stop the franchisor from limiting consumption of intellectual property. The confidential information concerning the property is made sure that prohibition is done to uncertain audiences. The personal data can contrary be accessed by the franchisee to do business if an agreement is met. The registration of the intellectual properties is done with no cost in Kuwait, and so by performing the franchising activity, the little cost is incurred by the parties involved. The franchising activity requires approval from Kuwait Municipality that the franchisee is entitled to the property in action. The Kuwait law makes sure that with the regulations, franchisor rights are not provoked by unknown personnel.  * Registration of franchising Specific laws do not regulate the franchising activities in Kuwait, and thus registration may not be applicable in many cases. There is also consideration of some restrictions enacted to foreign ownership, and therefore they apply while selling or buying a franchise in Kuwait. By ensuring that foreign franchisors work under the specified business law in Kuwait, entities can conduct themselves excellently. As said through Kuwait municipalities, the agreement deals for franchising are made clear and free from any form of conship. Contrary, a foreign investment license is used by parties in conducting franchising within the country. Using such claims, some of the restrictions are lowered to be more favorable. Thus, the franchising system in Kuwait for foreign parties is required to present the operation license given by the nation to make clean deals. Intellectual property franchising, on the other hand, does not require any form of registration. Therefore the franchising system in Kuwait needs few requirements for simple set up in Kuwait. Without the natural conditions for franchise system establishment, commercial law is used by the country to make sure that the operating parties meet the required agreement needs (Maktabi, 2020). The local franchisor has taken advantage of little registration measures by making many formal deals which have helped them develop their businesses. The government has also been strict in making sure that the operating franchising parties make local businesses grow. Through the minor registration requirements for the franchising system in Kuwait, globalization by local firms has been achieved. Thus, the no registration strategy for franchising in Kuwait has made business development, and locally produced goods and series have been globally recognized. * Trademark regulations The government significantly regulates trademarks in Kuwait in making sure that balanced economic development is achieved. Under specific articles in the Kuwait constitution, trademarks are defined as “pictorial elements, color combination, any signs perceivable by sight, audio signs, and related to sense of smell.” (Alrdaan, 2021). The number of trademarks to be registered in the country has reduced considerably for the past three years. Kuwait has also adopted the global goods and services classifications in writing trademarks. The registration of trademarks in Kuwait is valid for a maximum of ten years from the registration date. At certain times, some brands may want to continue operations within the country, whether foreign or local; in such scenarios, the trademark can be renewed according to article 77. After trademark registration, the owner commences legitimate proceedings to prevent any unauthorized use of the brand. Therefore the franchising system is significantly boosted by trademarks since the great brands help get more excellent deals for exciting parties. Thus the trademark registration helps to franchise in making sure that the agreements to be made aligns with the requirements of how the trademark can operate. If a brand does not align with the registration requirements of Kuwait, specific measures are taken which can affect franchising system agreements. * Brand protection Trade protection is done mainly to prevent counterfeits or copycats from infringing on someone’s brand. The regulations are made to ensure that nobody violates violations of brand name and identity. The Kuwait government has made sure that firms protect their brands so that the firm's growth is attained. The government is aware that with good protection, infringers slowly affect businesses in their market expansion process. Through the intellectual property regulation rights, the brands in the nation have been able to be protected for many years. The government has made sure that online brand protection is well organized to push away international counterfeits. The Kuwait government has worked with different associates globally to make sure that its citizen businesses are protected. The nation has set friendly terms to make sure that business reputations are obtained for every firm. In Kuwait, the brand p...