Franchising is the most effective technique for product distribution and services delivery. Developing and emerging countries have equipped their legalframework to benefit from this growinx business. Emerging iniddleclass society, vivid development and high number of small and micro enterprises are ripe Ethiopia for franchise. Transfer of knowhow and technology makes franchise an attractive business for development. Less failure rate .. first day profit, brand loyal customers are benefits of franchise compared to independent business. Franchise is a legally regulated business. As such the proper legal and institutional infrastructure for its regulation must develop side by side with it. To do so, the nature, theories. types and regulation of franchise in other jurisdictions should he studied. Identifying existing franchise relevant laws that have direct or incidental impactsfor franchise development is crucial. However, lack ofscholastic works in the area caused confusion with respect 10 our attitude towards foreign franchisors. Despite immense opportunity in terms of vast markets and the absence of market harriers, there are few franchise businesses in Ethiopia . African Development Bank recommended specific franchise law tu African countries. Studying the practical enforcement of franchise relevant law is a necessary step to be carried out to decide whether Ethiopia needs to havefranchise specific law or not. This study ascertained that there are scattered rules here and there in Ethiopian laws that are andfranchise friendly. However, weak and fragile enforcement of relevant laws through different regulatory agencies made implementation unpredictable. Franchise is at its saturation in Europe and America market. Nm11 the focus is on emerging countries and developing countries markets. In Ethiopia. international hotel brands are engaged in the hospitality market they considered as franchised outlets hut use management contract arrangements. Their role in contribution of knowhow and management skill is negligible. Abstract Ethiopia has organic agricultural products hif,;hly demanded by foreign markets. Domestic potential franchisors are receiving many franchise offers from foreign investors. Unfortunately, because of lack of awareness they rejected the opportunities. Legal preparation is one of essential steps for the development offranchise in one country. The Ministry of Trade's attempts to regulate franchise business through specific law is appreciated. Be that as it may, there is no comprehensive work done to make sure proposed law is achieving its goals. Moreover, the draft law misses the core point of franchise regulation, protection 1f franchisee and the mechanism of pre-contractual disclosure. This study is thus a modest attemp! al identifying the problem along these lines andforwarding possible points of recommendation thereon.