Franchise Forum | Kuwait: New Commercial Agency Law Enacted
For those interested in franchising in Kuwait, you should know that the country’s National Assembly recently amended its commercial agency law and enacted Law No. 13 of 2016. The law addresses the evolving issues and questions that relate to commercial agencies in Kuwait. In short, the law (i) clarifies that “franchisees” and “licensee” are cover the law; these individuals and/or entities are now expressly subject to any restrictions or requirements as well as protections afforded by the new law; (ii) dismantles the monopolies of agents by permitting principals to have more than one agent and/or distributor in the same territory; and (iii) mandates that agents will longer be permitted to bring termination and/or expiration compensation cases to Kuwaiti courts if their agency agreements are not registered with the government. Those companies or individuals engaged in commercial activity in Kuwait should be aware of these important changes in the law.