Owning a Franchise

According to Export.gov (part of the International Trade Administration), franchising by foreign companies is limited in Algeria, largely because of strict foreign exchange controls that do not allow the repatriation of royalties. The Algerian government has been considering a franchise law to make franchising possible in Algeria, though no timeframe has been set for its implementation.

Several European companies operate what appear to be franchise stores in the fast food, clothing, jewelry, cosmetics and retail sectors, and international hotel names are licensed in Algeria. European companies manage their franchises in Algeria through the invoicing of goods and/or technical assistance services imported by the franchisee, rather than through the payment of royalties or other franchise fees. There are currently only three U.S. franchises (in the education & training services sector) operating in Algeria.

Nevertheless, the development of American franchises in Algeria remains a key interest for AmCham Algeria and we are happy to discuss with Algerian and American parties that wish to invest in this area.