II. Legal information
 
A. Legal information directly related to franchising
 
- Applicable legislation
 
Lebanon has no specific legislation governing franchising or distribution contracts. Relationships between franchisor and franchisee, or master-franchisor and master-franchisee, are therefore governed by ordinary contract law.
 
The Lebanese Franchise Association has adopted a code of ethics[34], deliberately similar to the European Franchise Code.
 
This code is signed by members of the Lebanese Franchise Association when they join, and is binding on the franchisor, who must give it to the prospective franchisee at the same time as the pre-contractual information document.
 
Franchising is defined as a system of commercialization of goods and/or services and/or technology, based on close and continuous collaboration between financially and legally distinct and independent entrepreneurs, the franchisor and its franchisees, whereby the franchisor grants the franchisee the right and imposes the obligation to operate its business in accordance with its concept. The franchisee must, in exchange for financial consideration, use the franchisor's trade name and/or trademark for goods and/or services, know-how, procedural system and other intellectual and/or industrial property rights, supported by the ongoing provision of commercial and technical assistance, within the framework and according to the provisions of a written franchise agreement concluded for this purpose between the parties.
 
The Lebanese Code of Ethics applies to the master-franchisee/sub-franchisee relationship, but not to the master-franchisor/master-franchisee relationship.
 
- Pre-contractual information

Pre-contractual information for prospective franchisees is not governed by law.
 
The Lebanese Code of Ethics provides for a copy of the Code of Ethics to be given to the prospective franchisee within a reasonable period of time before the contract is signed, together with a written document containing all important information relating to the franchise relationship, to enable the prospective franchisee to make an informed commitment.
 
The Code of Ethics also expressly states that the documents thus provided to the prospective franchisee are binding on the franchisor.
 
- Contract performance
 
As there is no specific legislation, franchise contracts are governed by the Lebanese Code of Obligations and by freedom of contract.
 
The Code of Ethics of the Lebanese Franchise Association sets out the minimum content of a franchise agreement, which must specify the respective rights and obligations of the parties, the goods and/or services supplied to the franchisee, and the duration of the contract, which must be sufficient to enable the franchisee to  pay back his or her investment. Franchise agreements must also set out the terms for renewal and termination of the contract, and for the transfer of the franchised business.
 
- Jurisdiction and applicable law
 
Lebanon has signed and ratified the 1980 Vienna Convention on Contracts for the International Sale of Goods[35]. This Convention applies exclusively to contracts for the sale of goods for professional use (Section 2 of the Convention). The Vienna Convention governs only the formation of international sales contracts and the rights and obligations of seller and buyer. However, the validity of the contract, as well as the effects of the contract on the ownership of the goods sold, are not governed by the Vienna Convention. This Convention overrides national law when the parties have their place of business in States party to the Convention.
 
Lebanon has also ratified the New York Convention on International Arbitration[36], allowing for the recognition and enforcement of arbitral awards made in the territory of party States[37].
 
- Trademarks
 
Lebanese trademarks are registered with the Intellectual Property Office[38], which reports to the Ministry of the Economy. As Lebanon is not a member of the Madrid system, Lebanese trademarks cannot be registered internationally.
 
Lebanon is a signatory to the Nice Agreement concerning the international classification of goods and services[39]. Consequently, for the registration of a Lebanese trademark, reference should be made to the international classification of goods and services of the Nice Agreement. The texts governing the Nice Classification are published online[40] by the World Intellectual Property Organization (WIPO).
 
If the trademark owner is not Lebanese, s/he must be represented by a person residing in Lebanon.
Lebanon has been a member of the Paris Union since 1924. Foreign nationals therefore enjoy the same protection as nationals.
 
The Lebanese Trademark Law of 1924[41] sets out that the registration of a Lebanese trademark is valid for fifteen years and renewable indefinitely.
 
Trademarks are protected under criminal law against counterfeiting and fraudulent imitation; in this context, similarity is equated with outright imitation.
 
Trade names are also protected against counterfeiting and fraudulent imitation.

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To go further by MIIP

In Lebanon, trademark applications are handled nationally. The trademark office conducts examinations but may not reject applications on relative grounds. Lebanon allows multi-class trademark registrations.  Lebanese trademark law does not allow for the cancellation of registered trademarks for non-use.To develop a franchise in Lebanon, it is advisable to cover "Business assistance relating to franchising" and "retail services" under class 35, both of which are accepted by the trademark office. Recording a franchising agreement is not compulsory, but trademark license recordal is optional and may enhance effectiveness against third parties. Royalties from trademark-related activities are subject to income tax in Lebanon.