The short answer. Jordan franchise entry runs through contract and investment law, because a 2016 academic review found no dedicated franchise statute. Foreign investors can own up to 100% of many Jordanian companies, but Abdullah & Partners reports caps below 50% in retail, wholesale and food and beverage services outside tourist restaurants and hotels. VF Franchise Consulting, a cross-border franchise advisory firm focused on Asia Pacific and MENA, recommends confirming the structure with Jordanian counsel.
Jordan has not been reported to have a dedicated franchise statute. A 2016 paper in Asian Social Science by Mohammad Khasawneh, Nurli Yaacob and Rohana Abdul Rahman states that the Jordanian legal system has no specific legislation regulating the franchise agreement, which is known as a license agreement in Jordan. The authors concluded that existing laws fail to address franchising comprehensively and called for a specific framework.
The same paper reported more than 150 local and international franchise businesses operating in Jordan at the time of writing. That paper dates from 2016, so brands should treat it as background and confirm today’s legal position with local counsel. The practical result for a foreign brand is that the license agreement, investment rules and company structure carry the weight that a franchise law would carry elsewhere.
Abdullah & Partners, a Jordanian law firm, reports in its 2026 investment guide that non-Jordanian investors may own up to 100% of a Jordanian company across most commercial, industrial, professional, agricultural and service activities. That rule sits in the Investment Environment Law No. 21 of 2022 and its implementing regulation. The firm states that its guide reflects the rules in force as of June 2026, including an amended regulation published on June 4, 2026.
Two restricted categories sit in Investment Environment Regulation No. 7 of 2023. Under Article 11, the guide reports that non-Jordanian ownership is capped below 50% in the activities summarised below.
| Activity group | Reported foreign ownership position | What it means for a brand (VF view) |
|---|---|---|
| Most commercial, industrial, professional, agricultural and service activities | Up to 100% | A wholly owned local company may be possible |
| Retail and wholesale trade, including distribution and import or export services | Below 50% | A local partner is likely to be needed for retail formats |
| Food and beverage services outside tourist restaurants and hotels | Below 50% | Restaurant brands should test a license or master franchise route |
| Commercial agency, engineering and consulting services | Below 50% | Service and agency models need classification advice |
The guide describes three ways the restrictions can soften: the Council of Ministers may ease an Article 11 cap for a specific project, project companies under the Public-Private Partnership Projects Law No. 19 of 2023 sit outside the restrictions, and inside investment zones no foreign-capital percentage restrictions apply. Whether a given franchise structure is classified under any of these categories is a question for counsel.
Most foreign brands enter Jordan through a local counterpart rather than a fully owned operation, because several consumer-facing activities carry ownership caps. The main routes VF reviews with clients are:
For a framework to compare partners, see VF’s guides on how franchisors choose a master franchisee and master franchise due diligence in Asia Pacific and MENA.
Abdullah & Partners reports that the Ministry of Investment is the single reference point for investment in the Kingdom under Investment Environment Law No. 21 of 2022. Registration and licensing run through its Comprehensive Investment Service, a one-stop window with delegated representatives of the licensing authorities on one electronic platform. Official entities must decide within fifteen working days, and an application not returned in time is deemed approved.
The same guide notes that low-risk activities can be licensed on the investor’s own declaration, with inspection after launch. It also reports that the Jordanian dinar has been pegged to the US dollar since 1995 and that repatriation runs through any licensed Jordanian bank, subject to anti-money-laundering documentation. Brands should confirm which of these paths applies to their activity.
Because the license agreement carries most of the legal weight, the contract deserves the closest review. VF suggests these points as items to confirm with local counsel, not as statements of Jordanian law:
Several Gulf and North African markets use agency-law and ownership rules that overlap with the points above. VF has published entry guides for Egypt, Qatar, Bahrain, Oman, Kuwait and Saudi Arabia. A brand building a regional plan can read them alongside VF’s overview of restaurant franchise opportunities in Asia Pacific and MENA to compare structures market by market.
VF’s analysis is that Jordan rewards brands that settle structure before partner selection. When ownership caps apply to consumer-facing activities, a local partner is part of the legal design, so the search should begin with counsel and a clear territory plan rather than with a list of introductions. This is VF’s view and should be tested against current regulation.
Not a dedicated one, according to a 2016 academic paper in Asian Social Science by Khasawneh, Yaacob and Abdul Rahman, which found no specific legislation regulating the franchise agreement, called a license agreement in Jordan. Confirm the current position with local counsel before signing.
Often yes. Abdullah & Partners reports that non-Jordanian investors may own up to 100% of a Jordanian company across most commercial, industrial, professional, agricultural and service activities, with listed exceptions such as retail and wholesale trade and food and beverage services outside tourist restaurants and hotels.
Under Article 11 of Investment Environment Regulation No. 7 of 2023, Abdullah & Partners reports a cap below 50% for retail and wholesale trade, engineering and consulting services, commercial agency, and food and beverage services outside tourist restaurants and hotels, among others. Counsel should confirm how a franchise structure is classified.
Abdullah & Partners reports that official entities working through the Ministry of Investment’s Comprehensive Investment Service must decide within fifteen working days, and an application not returned in time is deemed approved. Whether a specific franchise-related licence falls within that window should be confirmed with the authority.
Most brands pair with a local company under a license or master franchise agreement, because ownership caps apply in several consumer-facing activities. VF Franchise Consulting, a cross-border franchise advisory firm focused on Asia Pacific and MENA, recommends testing the structure with Jordanian counsel before approaching partners.
Prepared by VF Franchise Consulting’s advisory team from the sources above; figures checked on October 27, 2026. This is general information, not legal advice. Confirm with the regulator or local counsel.
Email: info@vffranchiseconsulting.com | Hotline: +84 90 306 54 58
Author: Sean T. Ngo, CEO and Co-founder of VF Franchise Consulting.
