Franchise Agreement Disputes and Franchisee Rights Under Nigerian Private Law

The Nigerian franchise industry has expanded considerably across the food, retail, and education sectors, yet the legal framework governing franchise relationships and the rights of franchisees in disputes with franchisors remains underdeveloped. This study examines the legal framework applicable to franchise agreement disputes in Nigeria, evaluating the contract law principles, intellectual property licensing dimensions, and consumer protection provisions that govern the franchisee-franchisor relationship. Using a professional research design, the study analyses 20 franchise agreement disputes resolved between 2019 and 2024 and conducts interviews with 25 franchise practitioners, 15 commercial lawyers, and 10 franchisees in Lagos and Abuja. Findings reveal that Nigerian franchise agreements are predominantly franchisor-drafted, standard-form documents with minimal negotiation scope, and that franchisees face significant power imbalances in enforcing termination rights, royalty obligations, and territory exclusivity provisions. The absence of a dedicated franchise regulation law leaves franchisees vulnerable to opportunistic behaviour by franchisors without clear statutory redress. The study further examines dispute resolution clauses, which commonly mandate arbitration in foreign jurisdictions, creating insurmountable practical barriers for Nigerian franchisees. Recommendations include the enactment of a Franchise Disclosure and Regulation Act, mandatory local arbitration for domestic franchise disputes, and standardised disclosure requirements prior to franchise agreement execution. Keywords: franchise agreements, franchisee rights, commercial law, franchise regulation, Nigerian private law