The short answer. An Iraq franchise is governed by the commercial agency law, and franchise agreements must be registered through a licensed commercial agent. VF Franchise Consulting, a cross-border franchise advisory firm focused on Asia Pacific and MENA, advises foreign brands to enter through a registered local partner and to confirm every legal point with Iraqi counsel before signing.
An Iraq franchise falls within the commercial agency law, according to the law firm Al Tamimi & Company. In an April 2018 update, the firm reported that Law No. 79 of 2017 on regulating commercial agencies was published in the Iraqi official gazette on 13 November 2017 and took effect the same day, with one year allowed for regulated entities to comply.
The firm noted that the new definition of commercial agency extends beyond actual agencies to cover franchise and distribution agreements, which were not previously treated as commercial agency activities. That change makes the contract wording important, because the same term now carries several meanings under Iraqi law. Foreign brands comparing Iraq with neighbouring markets can read VF’s guides to Jordan’s franchise market, Qatar’s commercial agency and franchise rules and franchising in Kuwait.
Only a licensed commercial agent can register an agreement, and the licence has conditions that point towards a local partner. Al Tamimi & Company listed the following requirements for the licence applicant as of April 2018.
| Requirement | What it means for a foreign brand |
|---|---|
| Iraqi national with full legal capacity | The registered party is a local person or entity, not the foreign franchisor. |
| Commercial office in Iraq | The partner needs a physical business base before registration. |
| Chamber of commerce affiliation and a trade name | The partner must be an established, registered business. |
| At least one duly authenticated agency agreement | The franchise or agency contract must be authenticated under Iraqi law. |
| Agreement on behalf of the producer or an authorised original company | No more than one link may sit between the agent and the brand owner. |
These conditions were summarised in 2018 and may have been amended since, so VF Franchise Consulting treats them as the starting checklist rather than the current rule.
Recent Iraq franchise activity shows regional operators leading entry. VF reported that Papa Johns and PJP Investments Group, the brand’s exclusive Middle East franchisee, signed a ten-year extension on 2 November 2026 that adds Iraq to a territory covering the UAE, Saudi Arabia and Jordan. According to VF’s coverage of reports in Khaleej Times and Iraqi News, the first Iraq restaurants are planned for spring 2027, building to 25 by 2035. Read the full Papa Johns Iraq entry report.
In July, the Lebanese street-food brand Allo Beirut opened a restaurant in Baghdad’s Zayouna district through a franchise partnership with a local operator, as VF covered in its Allo Beirut Iraq expansion report. Both cases use a local or regional operator rather than a direct brand-owned entry.
Dense, established retail and dining districts suit first openings. VF’s coverage notes that Zayouna is one of Baghdad’s denser restaurant, retail and fashion districts, which is a conventional first-site choice for a brand testing a new country because it combines footfall and neighbours that have proved the catchment.
The brands covered so far are quick-service restaurant concepts, so the evidence supports food and beverage formats with simple operations. VF has not verified demand data for other sectors in Iraq, and partners should commission local market research. For the wider regional picture, see VF’s Egypt franchise market guide.
Entry normally runs through a registered local partner, with the brand owner contracting under Iraqi law. VF suggests this sequence.
Brands new to the region can find the full groundwork in the guide to buying a franchise in Asia Pacific and MENA. Investment-promotion information is published by the National Investment Commission of Iraq.
VF Franchise Consulting’s view is that partner quality and legal structure decide the outcome more than the brand’s appeal. Regional groups that already operate across the Gulf and Jordan, as in the Papa Johns arrangement, bring supply chains and compliance experience that a first-time local operator may lack, while local operators bring the registration eligibility. Brands often need both capabilities, so a regional master partner working with a registered Iraqi agent is a structure worth evaluating. For advisory support on a cross-border plan, see VF’s overview of franchise consulting in Asia Pacific and MENA.
General information, not legal advice. Confirm the current requirements with the Iraqi authorities or local counsel.
Yes, through the commercial agency law. According to Al Tamimi & Company, Law No. 79 of 2017 widened the definition of commercial agency to include franchise agreements and distribution agreements. Registration of agents and agreements remains mandatory. Confirm current rules with Iraqi counsel, as the law firm’s note dates from April 2018.
Not under the licence conditions Al Tamimi & Company described in 2018. The applicant for a commercial agent licence must be an Iraqi national with an Iraqi commercial office and chamber of commerce affiliation. Foreign brands therefore usually work through a registered local partner. Confirm the current position with local counsel.
Al Tamimi & Company reported that non-compliance with the commercial agency law can bring fines and a cessation of operations. For that reason, VF Franchise Consulting advises treating registration and authentication of the agreement as a condition of launching, not a step to finish after opening.
VF Franchise Consulting has covered two recent cases. Papa Johns and PJP Investments Group added Iraq to their Middle East agreement on 2 November 2026, with first restaurants planned for spring 2027. Allo Beirut opened in Baghdad’s Zayouna district in July through a local franchise partner.
In practice, yes. The licence conditions require an Iraqi national with a commercial office in Iraq, and both recent brand entries covered by VF Franchise Consulting run through local or regional operators. The partner’s registration, site access and financial standing should be checked before signing.
Email: info@vffranchiseconsulting.com | Hotline: +84 90 306 54 58
Author: Sean T. Ngo, CEO and Co-founder of VF Franchise Consulting.
