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The franchising business has been successfully transplanted to the Middle East because of strong consumer demand and the attractiveness of foreign products and the franchising system itself. Among the major US franchises which operate in Arab countries are McDonald's, Pizza Hut, Avis, Hertz and Holiday Inn. The franchising business can be advantageous to both franchisers and franchisees. Franchisers can attain quick market expansion and penetration while franchisees can avail of lower risks provided by franchising. The popularity of this business is expected to increase in the region. Guidelines to franchise operations in the region are discussed.