United Arab Emirates
Answer ... If a franchise agreement is not registered as a commercial agency agreement, the parties may choose a foreign law to govern the terms of their agreement. However, this will not prevent the UAE courts from accepting jurisdiction, in the absence of an arbitration clause, if the agreement was performed in the United Arab Emirates or if one of the parties is domiciled in the United Arab Emirates.
The parties may also choose free zone courts such as the Dubai International Financial Centre (DIFC) or the Abu Dhabi Global Market (ADGM) to hear their disputes. These courts are modelled on the courts of England and Wales, and are made up of a court of first instance and a court of appeal. Compared to local courts, one of the benefits of a free zone court is that proceedings are conducted in English rather than Arabic.
A dispute may also be resolved by arbitration if agreed by the parties in the franchise agreement. Arbitrations, excluding those seated in the DIFC or the ADGM, will be governed by the UAE Federal Arbitration Law (6/2018). Each of the emirates has a designated arbitration centre (in Dubai, the Dubai International Centre); and there is also the option of the DIFC-LCIA Arbitration Centre or the ADGM Arbitration Centre, both of which are modelled on the UNCITRAL Model Law. Both can be chosen by parties irrespective of their connection with the DIFC or the ADGM.
An arbitration agreement in respect of a registered franchise agreement under the Commercial Agency Law will not be enforceable, as any disputes will fall under the exclusive jurisdiction of the UAE courts. The advantages of arbitration include that it is private and proceedings can be conducted in English; however, arbitration is expensive when compared to court proceedings and may not be appropriate in all circumstances.
United Arab Emirates
Answer ... Both mediation and arbitration are commonly used to resolve franchising disputes in the United Arab Emirates.
United Arab Emirates
Answer ... No answer submitted for this question.
United Arab Emirates
Answer ... Class action lawsuits are not recognised under UAE law.