Check Your Franchise Agreement — UAE
Upload your franchise agreement. AI checks fee stacking, territory protection, termination rights, supplier lock-ins, and non-compete terms in 30 seconds.
What TenderScan checks in your franchise agreement:
What We Find
Critical risks our AI flags in franchise agreements
Hidden Fee Stacking
Franchise fee, royalty percentage, marketing levy, technology fee, training fee, and renewal fee — stacked together, these can consume 15-25% of gross revenue before you pay rent or staff.
Territory Not Protected
No exclusive territory clause or territory defined too narrowly. The franchisor can open another unit or award another franchisee next to your location.
Term Too Short for ROI
Franchise terms of 5 years when your fit-out and setup costs require 7-10 years to recover. Short terms with no guaranteed renewal leave you exposed.
Franchisor Termination Power
Broad termination rights allowing the franchisor to end the agreement for minor infractions. Loss of franchise means loss of your entire investment with no compensation.
Non-Compete Post-Termination
2-5 year non-compete clauses preventing you from operating any similar business in the UAE after the franchise ends. This can effectively end your career in the industry.
Mandatory Supplier Lock-In
Required to purchase all supplies from franchisor-approved vendors at above-market prices. Supply chain lock-in is a hidden profit centre for franchisors.
Real Finding
We found “franchisor may terminate this agreement with 30 days notice if franchisee fails to meet minimum revenue targets for two consecutive quarters” in 39% of franchise agreements — effectively punishing slow starts that are normal for new locations.