Discusses opportunities for U.S. franchisers and legal requirements in the market.
Last Published: 12/10/2019

The franchise industry in Israel has developed rapidly in recent years, opening new opportunities for U.S. franchise brands to enter the vibrant Israeli economy. Many well-known American brands are already present in Israel, mostly under master franchise agreements. These brands include Payless Shoes, Forever 21, American Eagle, Gap, McDonalds, Pizza Hut, Domino’s Pizza, Bobby Brown, Steve Madden, Tommy Hilfiger, Ralph Lauren, Nine West, and others. In recent years, Footlocker, Papa John’s Pizza, Mr. Pretzels, Auntie Anne’s Pretzels, and Children’s Place successfully opened their first stores in Israel and expanded throughout the country.

About a third of the total franchises operating in Israel operate in merchandising, with the vast majority in the apparel and fashion industry. Popular American food chains have also taken a prominent place in the Israeli market. Other franchises focus on services such as real estate, brokerage and educational institutes. These include ReMax, Realty Executive, ERA, Century 21, Wall Street English, and Berlitz, to name a few. Israel has no official centralized legislation regarding franchises, so the industry’s rules and regulations are primarily derived from Israeli contract law and intellectual property legislation.

Recently, a number of independent franchise consulting and brokering companies have established themselves to offer professional services to the Israeli franchising community. These include the Israel Franchise Promotion Center and the Israel Franchise Institute. As of today, there is no government endorsed franchise association serving the franchising industry.
 

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