Discusses opportunities for U.S. franchisers and legal requirements in the market.
Last Published: 6/3/2019

Franchising in Lebanon has experienced notable growth since the late 1990s with the successful establishment of international brand names across the country.  According to the Lebanese Franchise Association (LAF), the franchising sector employs nearly 100,000 employees, or an estimated nine percent of total workers in the country.  There are approximately 744 companies in the franchising sector in Lebanon constituting around 6% of total companies operating in Lebanon.  The industry contributes close to $1.5 billion to the national economy, or about four percent of the entire GDP.  Approximately 44 percent of franchises in Lebanon originate in Europe, 38 percent from the United States and Canada, and 13 percent by local Lebanese franchisors. 
Franchising opportunities are extensive in the food service industry.  Major U.S. brands present in Lebanon include Burger King, Chili's, Domino’s Pizza, Dunkin Donuts, Hardee’s, Kentucky Fried Chicken (KFC),  McDonald's, P.F. Chang’s, Pinkberry, Pizza Hut, Starbucks, Subway, and Raising Cane’s.  Major challenges for franchisors and franchisees include uncertain security conditions, high cost of rent, and difficulty to access financing. 
Lebanese consumers value U.S. brand-names in clothing and professional service companies.  These include Berlitz Languages, Florsheim, Century 21 Real Estate, Coldwell Banker, Hertz, Avis, New Horizons, RE/MAX International, Ziebart, and Regus.
Hotel franchises also witnessed growth in Lebanon.  Many local hotels are partnering with international chains to the benefit of local proprietors who capitalize on the chains' name recognition and international reservation networks.  U.S. brands Hilton and Sheraton compete in Lebanon with major international chains, such as Four Seasons, Movenpick, Crowne Plaza, and InterContinental hotels.
The Lebanese Franchise Association (LFA) was established in 2006 in response to the needs of a fast-growing franchise industry, with the mission to develop franchising in Lebanon, and to promote Lebanese franchises worldwide. LFA hosts the annual Beirut International Franchise Forum (BIFEX), which offers significant opportunities for U.S. businesses to meet franchisors and potential franchisees from around the Middle East.  More information is available on  LFA’s website.  

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