Discusses opportunities for U.S. franchisers and legal requirements in the market.
The number of direct franchises in the Palestinian markets is still small. Coca-Cola has a bottling plant in Ramallah and more recently began operations in Gaza; Pepsi has one plant in Gaza which has been operating since 1962, and another one recently started operation in Jericho, West Bank. Five fast food franchises are currently operating in the West Bank: KFC; Pizza Hut; Domino’s Pizza; Hardee’s; and Popeyes.
A niche market exists for additional franchisors of fast food restaurants, hardware, garments, electronic equipment, and office supplies. Palestinian business people generally prefer a direct franchise agreement with the parent company, not through an Israeli franchisee.
Keys to successful franchising in the West Bank include cost competitiveness, brand recognition, strong management and marketing, and initial and ongoing training programs. Fast food franchisors, for example, have to take into consideration cultural and dietary customs of the general population; for example, neither alcohol nor pork meat nor pork byproducts, such as gelatin, are acceptable, and only halal meats (prepared in compliance with Islamic law) can be used. It is also very helpful if food products, such as chicken and beef, are sourced locally.
There is no franchising law in the West Bank and Gaza, and franchising agreements may come under agent/distributor laws. American franchisors are encouraged to work with a local law firm when drafting a franchising agreement.
- Fast food
- Apparel retail
- Hamburgers, doughnuts, coffee chains, and pizza
- Apparel for children and adults
For further information, please contact:
Issa Noursi, Commercial Specialist, Issa.Noursi@trade.gov or +972-2-625-5201.