Franchise Business in Pakistan an Analytical
Total Page:16
File Type:pdf, Size:1020Kb
i FRANCHISE BUSINESS IN PAKISTAN─AN ANALYTICAL STUDY IN SHARIAH PERSPECTIVE RESEARCH THESIS FOR PhD ISLAMIC STUDIES 1439ھ/2017ء Submitted by Supervised by GHULAM MUSTAFA DR. MUHAMMAD SAAD SIDDIQUI Roll No PhD 01-14 Professor INSTITUTE OF ISLAMIC STUDIES UNIVERSITY OF THE PUNJAB LAHORE, PAKISTAN SESSION 2014-19 ii In the name of ALLAH The Compassionate, the Merciful iii ۡ ۡ ا ۡق َرأۡۡبۡ ٱ ۡس مۡۡ َرب َكۡٱلَّ ذيۡ َخ َل َق١ۡۡۡ َخ َل َقۡٱ ۡ ۡلن ََٰس َنۡۡ م ۡنۡ َع َل ٍق٢ۡۡۡٱ ۡق َرأۡۡ َو َربُّ َكۡٱ ۡۡلَ ۡك َر مۡۡ ۡ ٣ۡۡٱلَّ ذيۡ َعلَّ َمۡبۡ ٱل َق َل م٤ۡۡۡ َعلَّ َمۡۡٱ ۡ ۡلن ََٰس َنۡۡ َماۡ َل ۡمۡيَ ۡع َل ۡم٥ۡۡ ۡ 1. Read in the name of your Lord Who created. 2. He created man from a clot. 3. Read and your Lord is most Honorable, 4. Who taught (to write) with the pen? 5. Taught man what he knew not. iv DEDICATION This work is dedicated to my very kind, affectionate, very loving, courageous and beloved parents and teachers. May ALLAH Almighty live them long and blissful. Student Name: Ghulam Mustafa Roll No: 01-14 Institute of Islãmic Studies Session: 2014-19 v CERTIFICATE The thesis: “FRANCHISE BUSINESS IN PAKISTAN-AN ANALYTICAL STUDY IN SHAIRAH PERSPECTIVE” by Ghulam Mustafa is approved in its present form by the Institute of Islãmic Studies as satisfying the thesis requirement for the degree of PhD in Islãmic Studies and it also fulfils the respective requirement of University of the Punjab and HEC. Signature of Supervisor with stamp Dr. Muhammad Saad Siddiqui Professor & Director Institute of Islãmic Studies University of the Punjab vi Forwarding Letter The thesis titled “FRANCHISE BUSINESS IN PAKISTAN-AN ANALYTICAL STUDY IN SHAIRAH PERSPECTIVE” authored and submitted by Ghulam Mustafa under my supervision is hereby approved for submission to the University of the Punjab in fulfilment of the requirement for the degree of PhD in Islãmic Studies. According to the best of my Knowledge, the dissertation is the production of his own efforts and I also certify that the scholar has skillfully employed the basic contemporary sources related to his topic. Dr. Muhammad Saad Siddiqui Professor & Director Institute of Islãmic Studies University of the Punjab vii TABLE OF CONTENTS Transliteration guide xii List of figures xiii List of Abbreviation xiv CHAPTER #1 1-68 1.1 Introduction 3 1.1.1. What are common franchise terms? 8 1.1.2. What are the alternatives to franchising? 9 1.1.3. Literature review 10 1.1.4. Justification and likely benefits 16 1.1.5. Plan of work 17 1.1.6. Place of work and facilities available 18 1.1.7. Research objectives 19 1.1.8. Research questions 20 1.1.9. Research methodology 20 1.1.10. Chapters organization 21 1.2. Literal & introductory discussion upon franchise & business 22 1.2.1. Linguistic origin of business & terminological meaning & history 22 1.2.2. What is terminology? 24 1.2.3. Business history 26 1.3. Franchise in lexicological and technical perspective 32 1.3.1. What is lexicology? 32 1.3.2. What is a technique? 37 1.3.3. Franchise in the light of lexicology and technique 38 1.4. Historical study of franchise business 46 1.4.1. The middle ages 46 1.4.2. The colonial period 47 1.4.3. In 1840s 47 1.4.4. In 1880s 47 1.4.5. The licensing arrangements 48 1.4.6. The turn of the century 48 1.4.7. In 1960s 48 1.4.8. Three modern franchise leaders 49 1.5. Classification and categorization of franchise business 50 1.5.1. Types of franchises based on ownership 50 1.5.2. Franchises based on operational structure 50 1.5.3. Types of franchises based on ownership 52 viii 1.6. Some knowledgeable types of franchise 54 1.7. The advantages and disadvantages 57 1.7.1 A general overview on the mechanism of a franchise business 57 1.7.2 Advantages and disadvantages of franchising 66 1.8. Glimpses (adspectus) of the chapter 68 CHAPTER #2 69-152 2.1. Introduction 71 2.2. Concept of law-a historical survey 71 2.2.1. Law meaning and definition 71 2.2.2. Historical background of law 74 2.2.3. Legal system of law 83 2.2.4. Legal subjects of law 96 2.3. Franchise business law in Pakistan 110 2.3.1. Franchising law in Pakistan (gernal) 110 2.3.2. Franchise Document Disclosure 112 2.3.3. Terms and conditions 115 2.3.4. Deduction 117 2.3.5. Legal issues in Pakistan_ critical study 117 2.3.6. Is franchise an agency or a license? 123 2.3.7. A critical appraisal 124 2.4. Franchising laws procedure -a Descriptive study 125 2.4.1. Franchising law procedure in Pakistan 125 2.4.2. Franchising laws in Malaysia 125 2.4.3. franchise law in Dubai 134 2.5. Glimpses (adspectus) of the chapter 152 CHAPTER #3 153-231 3.1 Introduction 155 3.2 Historical development of franchise business in Pakistan 156 3.2.1 The franchising business in Pakistan is not limited only to food 159 3.2.2 Presence of high potential to craft on franchises in Pakistan 161 3.2.3 Family business and historically development 162 3.2.4 Global steps for the development of franchise business in Pakistan 164 3.3 Chronological history of franchise business in Pakistan 170 3.3.1 Standard chartered bank 171 3.3.2 history of Bata shoe organization in Pakistan 173 3.3.3 Pakistan beverage limited 174 3.3.4 Coca-Cola Pakistan 175 3.3.5 the pizza hovel story starts in May 1958 175 3.3.6 OCS courier company 176 3.3.7 Gloria jean's coffee's 177 3.3.8 p and g 177 3.4 Franchising in education sector: analytical review 179 3.4.1 Prolusion to education: 179 ix 3.4.2 Types of education: 179 3.4.3 System of education in Pakistan 180 3.4.4 The emergence of franchising in the education sector 181 3.4.5 The social dimension of franchising in the education sector 183 3.4.6 The basic principles of franchising 184 3.4.7 The perspectives and challenges 187 3.4.8 Comments about dr. Rozenn 188 3.4.9 Punjab group of colleges and franchising in education 190 3.4.10 Beaconhouse school system and franchising in education 191 3.4.11 The educator school system and franchising in education 192 3.4.12 The country school system and franchising in education 194 3.4.13 The American lycetuff school 195 3.4.14 List of franchising schools 197 3.5 Franchising in food industry 198 3.5.1 List of important restaurants, bakeries and food places 199 3.6 Franchising business in other business sector 203 3.6.1 Franchising in pharmaceutical sector 203 3.6.2 Franchising in computer software sector 206 3.6.3 Franchising in garment sector 218 3.6.4 Franchising in automobiles in Pakistan 225 3.7 Glimpses (adspectus) of the chapter 231 CHAPTER #4 232-301 4.1 Introduction 235 4.2 Islãmic commandment regarding interest 236 4.2.1 Some important and basic points 236 4.2.2 Difference between Islãmic economy the approach of capitalistic 239 4.2.3 Asset-backed financing 241 4.2.4 RIBÃ(usury/interest) and its forms 246 4.2.5 Etymology and definition 248 4.2.6 Definition of RIBÃ include: 248 4.2.7 Different kinds of RIBÃ 249 4.2.8 Modernists 250 4.2.9 Revivalists 251 4.2.10 Scripture 252 4.2.11 Qurãn and prohibition 252 4.2.12 Hadith and prohibition 253 4.2.13 Importance 258 4.2.14 Companions and jurists 259 4.2.15 Scriptural proof FIQH 259 4.2.16 Rationale 260 x 4.3 Islãmic principles of trade-a descriptive report 261 4.3.1 Knowledge 261 4.3.2 The state of the things (forbidden or permitted) 262 4.3.3 Lawful thinks 263 4.3.4 Trust 264 4.3.5 Justice and honesty 265 4.3.6 Mutual respect 266 4.3.7 Fair trade 266 4.3.8 Lawful earning (halal) 267 4.3.9 Mutual agreement 268 4.3.10 Trade-a way or co-operation among the people 268 4.3.11 to create facilities in the matters 268 4.3.12 Good demand of loan 269 4.3.13 good returning of loan 269 4.3.14 to speak truth in the dealing 269 4.3.15 to avoid swearing 269 4.3.16 to avoid dishonesty 269 4.3.17 prohibition of old coins 270 4.3.18 prohibition of harmful trading 270 4.3.19 prohibition of trade for rulers 270 4.3.20 shortage in measurement 270 4.3.21 Income of one’s hand 271 4.3.22 Some causes that change the form of trading regarded as illegal 272 4.3.23 What is forbidden in Islãm? 275 4.3.24 General guidance for a Muslim to adopt the following principle 275 4.4 Islãmic modes of financing/ Shariah-compliant finance 275 4.4.1 Usury in Islãm 278 4.4.2 History of Islãmic banking 278 4.4.3 Principles of Islãmic law about banking 286 4.4.4 Criticism and objection 289 4.4.5 Scriptural basis 290 4.4.6 Interest and credit sales 290 4.4.7 Types of Islãmic lending 291 4.4.8 Time value of money 292 4.4.9 Early payent of debt 292 4.5 Concept of Shariah compliance: merits and demerits 292 4.5.1 Merits of Islãmic economic system 294 4.5.2 Demerits of Islãmic economic system 299 4.6 Glimpses (adspectus) of the chapter 300 xi Chapter #5 302-427 5.1 Introduction 304 5.2 concept of intellectual property rights-juristic discussion 305 5.2.1 Rights, meaning, features and types of rights 305 5.2.2 Meaning and definition 306 5.2.3 Features/ nature of rights 307 5.2.4 Types of rights 308 5.2.5 Concept of intellectual rights or intellectual property rights 316 5.2.6 Some fields that include intellectual property rights 321 5.3 Concept of “legal person” & its validity in Shariah 324 5.3.1 Definition and meaning 324 5.3.2 Legal person 325 5.3.3 Artificial personality, juridical personality, or juristic personality: 328 5.3.4 The history of legal person: 333 5.3.5 The value/validation of a legal person in Shariah 339 5.3.6 Some basic differences between natural person & legal person: 356 5.4 Different aspects of franchise & their Islãmic validation 358 5.4.1 Prolusion 358 5.4.2 The real and the ideal tools and instruments 360 5.4.3 MUSHÃRAKAH 360 5.4.4 MUDÃRABAH 368 5.4.5 MURÃBAHAH 373 5.4.6 IJÃRAH (leasing) 376 5.4.7 SALAM 380 5.4.8 ISTISNÃ 384 5.5 Franchise disclosure document (FDD) and Islãmic law of business 387 5.5.1 Introduction to FDD; 387 5.5.2 FDD and Islãmic law of business 389 5.5.3 Legal justifications of franchise business in Islãmic Shariah 396 5.6 Glimpses (adspectus) of the chapter 412 5.7 Final conclusion 414 5.8 Suggestions and recommendations 420 Bibliography 428-439 Appendix 440-449 xii Transliteration guide ALAPHABET LETTER ARABIC LETTER ALPHABET LETTER ARABIC LETTER ا - ض .D ب B ط -T ت T ظ Z ث Th ع .