Obligations of the Franchisor (Licensor) in the Franchise Agreement: A Comparative Study of Iraqi, Iranian, and Egyptian Laws

Abstract

This research examines the obligations of the franchisor (licensor) in a franchise agreement, clarifying their nature and content under Iraqi, Iranian, and Egyptian law. It focuses on the obligation to transfer technical knowledge and training, provide technical and marketing support, and maintain and protect the confidentiality of technical knowledge. The research also explores the relationship between these obligations and trademark licensing. The importance of this research lies in clarifying the legal position of the franchisor and the limits of their responsibility for fulfilling the obligations inherent in a franchise agreement, particularly given the varying legal frameworks governing this type of contract in the systems under comparison. The research employs a descriptive-analytical approach and a comparative methodology, analyzing and comparing relevant legal texts in Iraq, Iran, and Egypt, and drawing upon relevant jurisprudential and judicial trends. The research concluded that the grantor’s obligations are not limited to granting the right to use the trademark, but extend to the transfer of technical knowledge, the provision of technical and marketing support, and the protection of confidential information. The determination of these obligations in Iraq and Iran depends more on the agreement and general rules, while in Egypt there are more detailed provisions in some aspects related to trademarks, technology transfer, and the protection of undisclosed information. It also showed that the grantor’s liability for breach does not arise merely from the lack of profits or commercial success, but rather requires proof of the obligation, its breach, the occurrence of damage, and the establishment of a causal relationship.