The franchise contract is a contractual mechanism that has a great commercial impact and is influential in both domestic and international commercial relations. Because it is described as a comprehensive contract in that it contains four important legal dimensions that include production, licensing and agency, as well as the possibility of using it in the transfer of technical knowledge. However, the Iraqi legislator still has not developed a special law regulating the provisions of this contract in a manner commensurate with its nature and the importance of its role in commercial activity, despite the legislation of Commercial Agencies Law No. (79) for the year 1979, which considered this contract among the commercial agency contracts, but this contract has rules in particular.