I. Economic data

A. Macro-economic data

• General data[1]

Population 2021: 37,076,584 inhabitants[2]
Area: 446,550 km2[3]
Density: 83 inhabitants/km2[4]
GDP (nominal) 2022: $130.9 billion
GDP/capita 2022: $3,442
GDP (PPP) 2022: $363.1 billion (57th)
GDP (PPP)/capita 2022: $9,547.70
Growth rate 2022: 1.3%
GNI/capita (PPP) 2021: $8,730
HDI 2021: 0.683[5]
Literacy rate: 77 %
Life expectancy 2022: 74 years[6]

• Policy[7]
 
Morocco is a constitutional monarchy with a parliamentary system of government. Muhammad VI has been King since 1999. The King has implemented a number of political, economic and social reforms, such as the reform of the family code and social protection, and setting up the Equity and Reconciliation Commission's report on human rights violations between 1956 and 1999.
 
By referendum on July 1, 2011, a new Constitution was adopted, clarifying the relationship between the powers and strengthening the roles of the Head of Government and Parliament.
 
At the time of writing, the Prime Minister is Aziz AKHANNOUCH, of the Rassemblement National des Indépendants (RNI) party.
 
To fight inequality, in 2019 the King set up a Special Commission on Development, headed by Mr. Chakib BENMOUSSA, former Moroccan Ambassador to France.
 
The Moroccan government has launched a reform program, the Mohamed VI Fund for Investment, and adopted an investment charter in 1995. The government's goal is to have a growth model supported by the private sector[8].
 
The State also aims to ensure universal access to healthcare and social protection[9].
 
After withdrawing from the African Union in 1984, Morocco rejoined the Union in 2017, and even sat on the African Union's Peace and Security Council from 2018 to 2020. Morocco will sit on the Council again from 2022 to 2025.
 
• Economic development[10]
 
After returning to growth in 2000, the Moroccan economy was buoyed by the construction and public works, industrial, and tertiary sectors - telecommunications and tourism in particular - until the global economic crisis of 2008. At the time of writing, Morocco is Africa's fifth largest economy[11].
 
Morocco's economic growth is closely linked to the agricultural sector. Reforms have therefore been introduced to diversify sources of growth.
 
After suffering the Covid-19 health crisis, which caused a major recession of -7.2%, Morocco was hit by other shocks in 2022: a drought and the war in Ukraine, which caused prices to rise. As a result, GDP growth dropped from 8% in 2021 to 1.3% in 2022. Growth is expected to pick up again, however, with a 3% growth rate in the first half of 2023[12].
 
In September 2023, Morocco suffered a devastating earthquake in the province of Al Haouz. However, the effects on Morocco's economy are expected to be limited, as the areas most affected do not account for a significant share of GDP[13].
 
As a result of these various shocks, the inflation rate rose from 3.6% in 2021 to 10.3% in February 2023, before falling back to 5% in August 2023[14].
 
In 2021, Morocco had an unemployment rate of 11.5%[15].
 
Morocco ranks 53rd in the World Bank's 2020 "doing business" ranking.
 
• Resources
 
The agricultural sector (cereals, livestock, citrus fruits, sugar cane, vines) accounts for 12% of GDP and 34.2% of the working population is employed in agriculture. Mining (phosphate, iron, manganese, cobalt, copper, zinc, fluorine) and industry (notably food processing) account for 26.1% of GDP and 21.8% of the working population. Finally, services account for 61.9% of GDP and 44% of the working population[16].
 
In 2021, tourism brought in $4.5 billion to Morocco[17].
 
• Population
 
The Moroccan population is fairly young, with 25% of the population under 15 years of age. 67% of the population is between 15 and 65 years of age and only 8% is over 65[18].
 
The number of inhabitants in Morocco has increased by 203.8% in 62 years (1960 to 2022)[19] and the proportion of the urban population makes up 64% of the total population[20].
 
The majority of the Moroccan population is located on the coast and in the Mediterranean and Atlantic plains of the North and North-West[21].
 
The ten most populous cities in Morocco are Casablanca (3,793,585), Rabat (1,907,071), Fez (1,245,303), Tangier (1,238,322), Marrakech (1,017,379), Agadir (941,839), Oujda (570,257), Meknes (560,746), Kenitra (489,107) and Tetouan (428,845). [22]
 
• Foreign investment
 
To encourage foreign investment, Morocco adopted the Investment Charter in 1995[23], as will be explained below.
 
In 2019, Morocco raised €1 billion on the capital market[24].
 
In 2021, goods exports generated $316.1 billion, while imports were $51.5 billion[25].

While France was for many years the leading investor in Morocco, by 2022, the main investor in Morocco had become the United States, with 7.4 billion dirhams invested, compared with 3.2 billion dirhams invested by France[26]. However, France remains the country that holds the most foreign capital in Morocco, with a 31% stake.
 
The Euro-Mediterranean Association Agreement between the European Union and Morocco has been in force since 2000, with the aim of creating a free-trade zone to facilitate imports and exports.
 
A Free Trade Agreement between the USA and Morocco has also been in force since January 1, 2006,
covering over 95% of products. The United States has described Morocco as a "major non-NATO ally".
 
B. Economic data specific to franchising
 
• Historical background
 
Franchising first appeared in Morocco in the 1960s.
 
The first franchise to be established imported the American "Avis" concept in 1962. A year later, it was the turn of Hertz[27].
 
From 1960 to 1990, the growth rate of franchising in Morocco was very slow (one new brand every five years). It was not until the last decade that franchising began to develop significantly[28]. In 1997, forty-two networks had a presence in the country, with one hundred and seventy-four outlets[29].
 
• Institution
 
The Moroccan Federation of Franchising and Commerce[30] was created in 2002 to provide a framework for a non-legislated sector, promote franchising and represent franchisors and franchisees[31].
 
Another association has been set up by Moroccan franchisors, the Moroccan Association of networked businesses (marocaine des commerces en reseau), to provide a forum for discussion and research. The aim of this association is to pool the experience of franchisees and some of their tools. The Association is also in contact with the Department of Commerce and Industry[32].
 
• Trade shows
 
The first edition of Franchise Expo Morocco was held in 2016 in Casablanca.
 
The Moroccan Federation of franchising and commerce was also present at the Saudi Franchise Expo, held in Saudi Arabia from January 28 to 31, 2024.
 
• Statistics[33]
 
According to a report by the Moroccan Franchise Federation, in 2020 the sector counted 745 franchise networks and 4,881 outlets, of which approximately 30% were located in Casablanca[34].
 
The growth of franchises in Morocco has been made possible by the development of shopping malls, which grew in number by 100% between 2017 and 2020.
 
The sectors most represented in franchising are ready-to-wear (27%), catering (20%), hairdressing and cosmetics (8%), and home furnishings (7%).
 
According to a report by professors at Mohammed V University in Rabat, a franchised business is less likely to go into insolvency than an independent business. In fact, according to the report, 50% of independent businesses would become insolvent after 5 years, compared with less than 15% of franchised businesses[35].
 
• Contract content
 
As in France, franchising requires the franchisor to pass on know-how to the franchisee, make available customer rallying signs and provide assistance throughout the performance of the contract.
 
The franchisee has financial obligations towards the franchisor. The franchise agreement sets out how royalties are to be calculated, paid and monitored. In addition, the franchisee is bound by a duty of confidentiality of the know-how transmitted and, more generally, of the franchisor's concept.
 
• Special features[36]
 
Some brands have divided their franchisees by business sector rather than by geographical area.
The majority of franchises are either owned by large groups or by Moroccan families able to make the significant investments needed to run the businesses concerned.
 
• Economic impact
 
The distribution sector contributes 8% of the national GDP, bringing in 91 billion dirhams. It is the country's second-largest employer. The sector employs a total of 49,000 people in Morocco[37].
 
• International
 
Of the 745 franchise networks operating in Morocco, 84% are international brands[38]. In 2021, around 29% of franchises in Morocco were French, followed by Italian franchises (14%) and American franchises (8%)[39].
 
The proximity of several markets makes it easier to adapt foreign concepts and control delivery times. Morocco's historical ties with France, particularly in terms of language, help to speed up the establishment of French networks in the country.
 
II. Legal information
 
A. Legal information directly related to franchising
 
• Applicable legislation

The Moroccan legislator has not established a specific legal framework for franchising.
 
The Moroccan Code of Obligations governs the franchise contract, in particular Article 230, which establishes free will and the binding effect of the contract.
 
The Foreign Exchange Regulations, the latest version of which, at the time of writing, came into force on January 2, 2024[40], define franchising as a system for marketing products, services or technologies, based on ongoing collaboration between legally and financially distinct and independent companies, the franchisor and the franchisee (Section 2).
 
The relationship between the parties is essentially governed by contractual law and the franchise agreement. The content of the respective obligations of franchisor and franchisee is therefore almost entirely determined by the will of the parties.
 
• Pre-contractual information
 
The Moroccan legislator has not stepped into the domain of pre-contractual information for franchisees.
 
The Moroccan Franchise Federation, founded in 2002, has adopted a code of ethics, following the example of its counterparts in other countries. Similar in content to its European equivalent, this code of ethics provides for pre-contractual information to be given to franchisees. However, it has no legal force.
 
• Contract performance
 
As there is no specific legislation, the franchise agreement is governed by the rules of generally applicable law. As stated in Section 230 of the LOC (Law of Obligations and Contracts): "Contractual obligations validly formed take the place of law for those who have made them".
 
Section 56 of the foreign exchange regulations mentioned earlier, concerning the settlement of imports of services, specifies that the prior agreement of the Foreign Exchange Office is required for the settlement of amounts due in respect of guaranteed minimum fees and entry fees for franchises.
 
There is no legal notice of termination of the commercial relationship between franchisor and franchisee. In the absence of any provision to the contrary, the franchisor may terminate the contract at any time.
 
• Jurisdiction and applicable law
 
Morocco has ratified the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
 
Morocco has also ratified the 1965 Washington Convention establishing the International Centre for Settlement of Investment Disputes.
 
• Trademarks
 
Trademark law is currently regulated by the Industrial Property Protection Act[41] which has been amended several times, most recently by Act No. 23-13 in 2014[42].
 
Section 16 of this law states that any invention may be the subject of an industrial property title issued by the body responsible for industrial property. The law covers layout-designs (topographies) of integrated circuits, industrial designs and models, manufacturing, commercial or service trademarks, trade names, geographical indications and appellations of origin (Section 1).
 
Section 133 of law no. 17/97 defines a manufacturing, commercial or service trademark as a sign capable of graphic representation used to distinguish the products or services of a natural or legal entity. This includes names in all forms (e.g., words, combinations of patronymic and geographical words, letters, numbers, acronyms, pseudonyms), figurative signs (e.g., drawings, labels, stamps, logos, synthetic images, holograms, color combinations or shades of color), sound signs (sounds, musical phrases) and olfactory trademarks.
 
Ownership of a trademark is acquired through registration with the Moroccan Office for Industrial and Commercial Ownership (OMPIC, (l'Office marocain de la propriété industrielle et commerciale)). This ownership right extends to the goods and services designated by the trademark owner.
 
The reproduction, use and affixing of a trademark, the use of a reproduced trademark or an identical or similar sign for goods or services similar or related to those covered by the registration, and the imitation and use of the imitated trademark for goods or services identical or similar to those covered by the registration are prohibited by Section 155 of the law.
 
Moroccan law provides for civil and criminal proceedings in the event of infringement of trademark ownership. It is thus possible to obtain the seizure or destruction of products offered for sale or services provided in breach of the ownership right. Penalties for counterfeiting range from two to six months' imprisonment, as well as a fine of between 50,000 and 500,000 dirhams (Section 213).
 
Protection lasts ten years, and is renewable indefinitely (Section 14). The trademark falls into the public domain if not renewed.
 
Sections 163 and 164 of the law mentioned earlier provide for the forfeiture of the right of ownership should the trademark not be used for an uninterrupted period of five years, or where designation of the product or service is customary in the trade.
 
Section 3 of the said law states that nationals of countries belonging to the International Union for the Protection of Industrial Ownership (Paris Convention) enjoy the protection of industrial ownership rights provided for by the present law.
 
Morocco adheres to the Madrid Agreement for the international registration of trademarks. The Madrid system enables companies to obtain trademark protection in up to 130 countries by filing a single international application, in a single language, with the World Intellectual Property Organization (WIPO). Under Article 6 of the Madrid Agreement, trademark registration is valid for 20 years. Morocco is also a member of the Paris Convention, under which each contracting State grants the same industrial property protection to nationals of other contracting States as to its own nationals, and of the Nice Agreement.
 
Morocco has also joined the Nice Agreement concerning the International Classification of Goods and Services for the Purposes of the Registration of Trademarks.

In Morocco, trademark applications can be handled both nationally and through the international system under the Madrid Protocol. The Trademark Office (TMO) adopts a substantive examination that evaluates the trademark's compliance with legal requirements but does not consider the likelihood of confusion with existing trademarks.  The country allows multi-class trademark registrations. Trademarks become vulnerable to cancellation for non-use if they are not used for five years. To develop a franchise in this country, it is advisable to cover "Business assistance relating to franchising" and "retail services"provided the goods are specified in class 35. Recording a franchising agreement is not required for trademark registration.
 
B. Peripheral legal data

• Competition law

Franchise agreements must comply with Moroccan competition law.

The base text is the Law on Freedom of Prices and Competition[43].

This law has a wide scope of application. Its provisions apply to:

- all natural persons or legal entities operating on the national market, whether or not they have their registered office or branch offices in Morocco;
- all production, distribution and service activities;
- public bodies outside the exercise of their prerogatives of public authority or public service mission;
- export agreements insofar as application thereof affects competition on the Moroccan domestic market.
 
The law on free pricing and competition prohibits, when the purpose or effect is to prevent, restrict or distort competition, agreements aiming to:
 
-restrict access to the market or the free exercise of competition by other companies;
-hinder the setting of prices through the free play of market forces by artificially promoting their rise or fall;
-limit or control production, markets, investment or technical progress;
-allocate markets, sources of supply or public contracts (Section 6 of the law).
 
Section 7 prohibits abuse by a company or group of companies in a dominant position or a situation of economic dependence.
 
Section 10 of the law provides for any undertaking or agreement relating to a prohibited practice to be annulled.
 
Now a member of the International Competition Network (ICN), the Moroccan Competition Council[44] is the authority responsible for ensuring free competition.
 
It has a wide range of powers, including competitiveness studies of various business sectors and branches, and drafts an annual report submitted to the Moroccan Prime Minister[45]. It intervenes on referral in cases of anti-competitive agreements likely to prevent, restrict or distort competition[46].
 
The Moroccan Competition Council is consulted by the government, standing committees of Parliament, courts, regional councils, urban communities, chambers of agriculture, trade unions and professional organizations, etc.
 
• Personal data

Since 2009, Morocco has had a law to protect individuals with regard to the processing of personal data[47].
 
Section 1 paragraph 1 of this law defines personal data as "any information, of whatever kind and irrespective of its medium, including sound and image, relating to an identified or identifiable natural person, hereinafter referred to as the 'data subject'".
 
Section 3 of the law on the protection of individuals with regard to the processing of personal data specifies that personal data must be processed fairly and lawfully, collected for specified, explicit and legitimate purposes, accurate and kept up to date, adequate, relevant and not excessive in relation to the purposes, and kept in a form which permits identification of the data subjects for no longer than is necessary to achieve the purposes for which it is collected and subsequently processed.
 
The law on the protection of individuals with regard to the processing of personal data provides for six legal bases: compliance with a legal obligation; performance of a contract to which the data subject is a party; safeguarding the vital interests of the data subject if he or she is unable to give consent; performance of a task carried out in the public interest or in the exercise of official authority vested in the controller or the third party to whom the data is disclosed; the fulfilment of the legitimate interest pursued by the controller or the recipient, provided that the interests or fundamental rights of the data subject are not infringed; the clear and explicit consent of the data subject (Section 4).
 
The National Commission for Monitoring the Protection of Personal Data (Commission nationale de contrôle de la protection des données à caractère personnel (CNDP))[48] is the competent authority for ensuring compliance with the law on the protection of individuals with regard to the processing of personal data, and has investigative powers[49].
 
• Special provisions for foreign investments
 
The Investment Charter[50], amended by a new framework law[51], sets out the legal framework for foreign investment and the Government's priorities.
 
Section 8 of the framework law specifies that the State will set up a main scheme comprising various grants (common grant, additional grant depending on the territory where the investment is made, or depending on the business sector targeted).
 
To qualify for the "joint" grant, the investor must sign an investment agreement with the State, defining the reciprocal undertakings of the State and the investor, as well as how they are to be implemented (Section 9). To qualify for this grant, the investor must recruit Moroccan employees, registered with the National Social Security Fund, for a minimum period of 18 consecutive months[52].
 
Section 31 of the framework law specifies that foreign investors can benefit from a convertibility regime that guarantees them the transfer of profits net of tax, with no limit on the amount or duration, and the transfer of proceeds from the total or partial sale or winding-up of the investment, including capital gains.

Main websites :
 
- Competition Council: www.conseil-concurrence.ma;
- Foreign Exchange Office: https://www.oc.gov.ma/fr;
- Intellectual property: www.ompic.org.ma;
- Moroccan Association of networked businesses: https://cgem.ma/structures/federations-statutaires/federation-marocaine-du-commerce-en-reseau-fmcr/
- Central Trade Register: www.ompic.org.ma/ompic_fr_46.shtm; https://www.hcp.ma/Direction-de-la-statistique_a716.html;
- Personal data: https://www.cndp.ma/;
-World Bank: https://www.banquemondiale.org/fr/home.
 

[1] Unless otherwise stated, the following data are from the World Bank
[2] Atlas, socio-economic of the countries of the world, Larousse, 2024 edition
[3] Ditto
[4] Ditto
[5] Ditto
[6] Ibid
[7] Unless otherwise indicated, the information below is taken from https://www.diplomatie.gouv.fr/fr/dossiers-pays/maroc/presentation-du-maroc/
[8] https://www.banquemondiale.org/fr/country/morocco/overview
[9] Ditto
[10]Unless otherwise stated, the information below is taken from https://www.diplomatie.gouv.fr/fr/dossiers-pays/maroc/presentation-du-maroc/
[11] https://www.franchisedirecte.fr/information/lafranchisealinternational/lafranchiseaumaroc/189/1035/
[12] https://www.banquemondiale.org/fr/country/morocco/overview
[13] Ditto
[14] Ibid
[15] Atlas, socio-economic of the countries of the world, Larousse, 2024 edition
[16] Atlas, socio-economic of the countries of the world, Larousse, 2024 edition
[17] Ditto
[18] Ibid
[19] https://www.donneesmondiales.com/afrique/maroc/croissance-population.php
[20] Atlas, socio-economic of the countries of the world, Larousse, 2024 edition
[21] https://www.donneesmondiales.com/afrique/maroc/croissance-population.php
[22] https://statisticstimes.com/demographics/country/morocco-cities-population.php
[23] Framework law n°18-95 of October 3, 1995
[24] https://www.diplomatie.gouv.fr/fr/dossiers-pays/maroc/presentation-du-maroc/
[25] Atlas, socio-economic of the countries of the world, Larousse, 2024 edition
[26]https://econostrum.info/maroc-etats-unis-detronent-france/#:~:text=En%202020%2C%20le%20montant%20des,3%2C2%20milliards%20de%20DH.
[27] https://www.leguidemarocain.com/histoire-de-la-franchise-au-maroc/
[28] Ditto
[29]https://www.hello-franchise.com/actu/291/la-franchise-au-maroc#:~:text=Au%20niveau%20statistique%2C%20les%20franchises,franchises%20espagnoles%20quatri%C3%A8me%20with%208%25.
[30] Corner of rue Amina Bent Wahab and rue du 6 octobre Casablanca, Tel: +212 522 985812, fmfmaroc@gmail. com
[31] https://www.observatoiredelafranchise.fr/dossier-maroc/franchise-sans-legislation.htm
[32] https://www.observatoiredelafranchise.fr/dossier-maroc/franchise-sans-legislation.htm
[33] In the absence of information to the contrary, the information below is taken from https://www.franchisedirecte.fr/information/lafranchisealinternational/lafranchiseaumaroc/189/1035/
[34]https://www.hello-franchise.com/actu/291/la-franchise-au-maroc#:~:text=Au%20niveau%20statistique%2C%20les%20franchises,franchises%20espagnoles%20quatri%C3%A8me%20with%208%25.
[35] Franchising: a springboard for the development of Moroccan businesses, Mounia AMAZIAN and Jalila AIT SOUDANE, March 2020 - Proceedings of the second international conference on economic Francophonie
[36] https://www.franchisedirecte.fr/information/lafranchisealinternational/lafranchiseaumaroc/189/1035/
[37]https://medias24.com/2021/05/20/etat-des-lieux-le-manque-de-financement-freine-le-developpement-de-lindustrie-de-la-franchise-au-maroc/
[38] https://www.franchisedirecte.fr/information/lafranchisealinternational/lafranchiseaumaroc/189/1035/
[39]https://medias24.com/2021/05/20/etat-des-lieux-le-manque-de-financement-freine-le-developpement-de-lindustrie-de-la-franchise-au-maroc/
[40] General Foreign Exchange Instructions of January 2, 2024
[41] Law n°17-97, promulgated by Dahir n°1-00-91 on February 15, 2000
[42] Law promulgated by Dahir no. 1-14-188 of November 21, 2014
[43] Law n°104-12 promulgated by Dahir n°1-14-116 on June 30, 2014
[44] Avenue Attine, Immeubles Mahaj Ryad 7 et 8, 4ème étage, Hay Ryad, Maroc, tél : 0537 75 62 16, adresse électronique : contact@conseil-concurrence.ma
[45] https://conseil-concurrence.ma/category/publications/rapports-annuels/
[46] https://conseil-concurrence.ma/qui-sommes-nous/mission-et-attributions/
[47] Law n°09-08 promulgated by Dahir n°1-09-15 on February 18, 2009
[48] Avenue AI Arz, Secteur 4, M1, Hay Riad - Rabat Morocco, tel: +212 537 57 11 24, e-mail: contact@cndp.ma
[49] https://www.cndp.ma/missions/
[50] Law n°1-93-212 of January 31, 1994
[51] Framework law n°03-22 forming an investment charter
[52] Section 1, decree no. 2-23-1 of February 16, 223