West Bank and Gaza - Country Commercial Guide
Franchising Sector

Discusses opportunities for U.S. franchisers and legal requirements in the market.

Last published date: 2022-08-09

Overview

The franchising sector, especially in fast food, has witnessed a marked increase in the number of franchises that have opened up for business in the West Bank. Coca-Cola for example has a bottling plant in Ramallah and recently built a new one in Gaza, while Pepsi that has been operating in Gaza since 1962 and has also opened a plant in the West Bank city of Jericho.

As for fast food chains, there are six franchises currently operating in the West Bank: KFC, Pizza Hut, Popeyes, Domino’s, Hardee’s and Pizza Inn.

A niche market exists for additional franchises in apparel, electronic equipment and office supplies.

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 and 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.

Leading Sub-Sectors

  • Fast food
  • Apparel retail  

Opportunities

  • Hamburgers, doughnuts, coffee chains, and pizza
  • Apparel for children and adults

For further information, please contact:

Issa Noursi, Commercial Specialist, Issa.Noursi@trade.gov