Franchise Business in Pakistan an Analytical

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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

In the name of ALLAH The Compassionate, the Merciful

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ۡ ۡ 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.

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

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

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

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Transliteration guide

ALAPHABET LETTER ARABIC LETTER ALPHABET LETTER ARABIC LETTER

ا - ض .D

ب B ط -T

ت T ظ Z

ث Th ع .

ج J غ Gh

ح H ف F

خ Kh ق Q

د D ك K

ز Dh ل I

ر R م M

ز Z ن N

س S و W

ش Sy ه H

ص .s ء ,

ي Y

SHORT LONG DIPHTHONGS

ا يَ Ay آ Ā اَ A

اُ وَ Aw ا يَ Ī اَ I

اُ وَ Ū اَُ u

xiii

List of figures

Figure 1.1 5 Figure 1.2 6 Figure 1.3 7 Figure 1.4 7 Figure 1.5 10 Figure 1.6 44 Figure 1.7 45 Figure 1.8 50 Figure 1.9 51

xiv

List of Important Abbreviation

UFOC Uniform Franchise Offering Circular HEC Higher Education Commission USM University Sains Malaysia USA United Stated of America SP Sole Proprietorship GP Gerneral Proprietorship LP Limited Partnership LLP Limited Laibility Partnership LLLP Limited Laibility Limited Partnership LLC Limited Laibility Company MT Massachusetts Trust JV Joint Venture FDD Franchise Discloure Document FPR Financial Preformance representation FTC Federal Trade Coorperation MF Manufacturer Franchise PF Product Franchise BFF Business Format Franchise BOV Business Opportunity Venture US United States GDP Gross Domoestic Product BC Before Christ EU European PhD Doctor of Philosphy WTO World Trade Organization PFA Pakistan Food Association LRBP Liquid Refreshment Biverages of Pakistan xv

ACKNOWLEDGEMENT

Today, is the day to revive all my efforts and the contribution of the people in my life who made me enable to reach at this point in my life. Firstly, I want to express my feelings by plentitude of thanks to ALLAH, from the core of my heart, who, being so merciful to me, selected me for seeking Islãmic treasure of the knowledge.

I heartily want to thank to my respected supervisor Dr. Muhammad Saad Siddiqui. I deliberately want to give credit of the completion of my research work to my respected and generous supervisor who not only guided me through my research work but also provided great emotional support to me and responded to my questions patiently. I want to give credit of my research thesis and knowledge I gained in my thesis to director, who is also my supervisor and all the teachers of Institute of Islãmic Studies, who always were a source of inspiration for me and helped me in every difficulty.

I am really thankful to the University of the Punjab Librarian and all the library staff for their remarkable contribution in allowing me to use the library stuff.

In the end I want to thank to my parents especially to my father whose inspirational and career oriented thoughts gave me a real breakthrough. My brothers and sisters have also remained supportive to me in providing computer skills, composing skills and emotional support.

I am also really very thankful to my children, Muhammad, Ahmad, Bilal and Khadeeja, especially my wife Fiaz Kausar, for their unconditional love, support, and full coorperation and especially for the sacrifice of the time that they always bear with smiling faces which is not only worth mentioning but also worth appreciating.

Ghulam Mustafa xvi

ABSTRACT

For the sake of ALLAH Almighty who is forgiving and sympathetic, at that point appreciation to the Prophet Muhammad (P.B.U.H) who is the wellspring of honorableness. The advanced man of the present time is enclosed in the arms of western business hypotheses and practices. The dynamic budgetary arrangement of west is common and inescapable. There is a progression of multi-dimensional organizations that had been conceived and effectively honed in west and later they caught the worldwide business group. It would not be considered misrepresented explanation in the event that we say that the Western economy has changed the entire universe into a worldwide market. The cutting-edge disciplines of information like Commerce, Management and Finance had transmuted the episteme of human information. Islãmic juristic talk is likewise under impact of western conservative idea and money related worldview. This is striking that capable money related hands and markets are assuming an imperative part in setting up or destabilizing the political condition of everywhere throughout the world. Corporate area through their money related instruments and apparatuses can control and control the approaches of governments quietly. Diversifying is additionally a predominant method for business incorporate segment to guarantee the nearness of oneself in monetary markets without physical nearness. Islãm being a dynamic religion confers its summons about all parts of human life including business and fund. The specific Islãmic standards for financial life with respect to suitability or unacceptability of business hones are trailed by the Muslims in letter and soul keeping in see the cutting-edge needs and patterns. The basic misguided judgment about Islãm that its lessons advance the wistful dismissal of this material world and focus on profound improvement should be tended to. The genuine and adjusted idea of Islãm must be uncovered by revealing its complete lessons about significance of business and riches. For most recent two decades, Muslims are stretching out their earnest attempts to reshape their lives by starting Shariah based budgetary organizations and changing their own organizations as indicated by Islãmic standards. They are attempting to

xvii dispatch some new Islãmic budgetary organizations and Franchising (Diversifying) is additionally one of the cutting edge critical organizations that were not found in such shape in primitive age and its age isn't over seventy years. Presently diversifying is getting a charge out of a decent business share in the money related market. As the diversifying is another business, consequently it should be investigated and checked on in context of Islãmic juristic hypotheses and practices of business. It is important to assess the reasonability and impermissibility of common practices of establishment business with the goal that pertinence and all-inclusiveness of Islãmic directives could be demonstrated.

Diversifying 'no uncertainty' is realized that it has played extremely positive, expanding and successful part in the national advancement of economies that is the reason in some creating nations national government is receiving the establishment business supposing it a standout amongst the most essential and powerful techniques for the improvement and quicker advance in financial advancement in the nation.

It is completely clear that the disappointment rate of establishment business is lower and not as much as the various ordinary and individual organizations however it is additionally certainty that the improvement and advance of diversifying relies upon the general better financial conditions and perfect climate. It ought to likewise be bring up that there are shots and potential outcomes of disappointment of establishment business in light of the fact that diversifying isn't ''a panacea'' to all sicknesses.

A far reaching articulation of down to earth life regarding establishment history, certainties and speculations are to be explained. This dialog will be engaged in the space and limits of Pakistan. Imperative and dire ramifications and complexities in diversifying laws in Pakistan have been counted. A few arrangements of these issues have been proposed. A profound, relative and unmistakable investigation of diversifying laws of Malaysia and Dubai would be overseen. Toward the finish of this part, a near investigation of diversifying laws of Pakistan, Malaysia, and Dubai could be obliged and appended.

xviii

Its initial step of development in Pakistan is to be uncovered. The advancement of establishment business in Pakistan, its slowly improvement and upgrade would be made known for perusers and specialists. The prologue to instruction, its sorts, and its framework in Pakistan is to be interlocked. Its rise, social and financial measurement in instruction diversifying in Pakistan would be accumulated on one page in broad daylight. Some imperative and fundamental guidelines of diversifying in instruction will be gathered under discourse and finished to embrace.

Islãmic commandments in apropos of RIBÃ (Usury Or Interest) will be examined in detail. RIBÃ and its esteem and position would be cleared up and clarified in the light of Qurãnic Verses and Hadith., the genuine and perfect devices and instruments of Islãmic Banking and Finance are to be viewed as and explained under the subtitle of ``Islãmic Modes of Banking and Financing. ``legal estimation of Islãmic components of financing, for example, MUSHÃRAKAH, MUDÃRABAH, MURÃBAHAH, SALAM, ISTISNÃ, and IJÃRAH and their criticalness in Shariah must be featured, clarified and demonstrated on the premise of experimental hypothesis and methodologies. Some unmistakable and particular qualities and estimations of Islãmic Economic System, for example, authorization of Islãmic law, social equity, monetary equity, foundation of Bait al-maal, steadiness in cost and support of moral and good esteems have unbridled and make sense of with the assistance of extraordinary signs and implications from the Qurãn and Hadith. Then again, a rundown of benefits and a few negative marks of Islãmic System of Economics will likewise be examined, clarified and advocated.

Strong and nitty gritty talk about the denotative and indicative importance and idea of ``Right `` will be engaged. The definition, which means and nature of Legal Person have been illustrated. Idea of Entity and Legal Entity has been cleared up. The approval of legitimate individual in Shariah will be defended. Twenty-three (23) components of establishment business will be counted. The Islãmic approval of establishment business and its all components in Islãmic Shariah would be supported. Components and instruments of Islãmic keeping money and back, for example,

xix

MUSHÃRAKAH, MUDÃRABAH, MURÃBAHAH, SALAM, ISTISNÃ, and IJÃRAH are thought to be examined in detail and legitimization, approval in Shariah, vindication and exemption of Shariah rules must be contained and illuminated. Some fitting, impressive, outstanding, satisfactory, unmistakable and reasonable comments, conclusions, verifications, contentions and confirmations will be deciphered, explained, defended and approved by the standards and standards of Islãmic Economic System and Shariah.

1 ______

CHAPTER 1

LITERAL &INTRODUCTORY DISCUSSIONS UPON FRANCHISE & BUSINESS

2 ______

CHAPTER #1

1.1 Introduction 1.1.1 What are common franchise terms? 1.1.2 What are the alternatives to franchising? 1.1.3 Literature review 1.1.4 Justification and likely benefits or problem statement 1.1.5 Plan of work 1.1.6 Place of work and facilities available 1.1.7 Research objectives 1.1.8 Research questions 1.1.9 Research methodology 1.1.10 Chapters organization 1.2 Literal & introductory discussion upon franchise & business 1.2.1 Linguistic origin of business (etymology)& terminological meaning & history 1.2.2 What is terminology? 1.2.3 Business history 1.3 Franchise in lexicological and technical perspective 1.3.1 What is lexicology? 1.3.2 What is a technique? 1.3.3 Franchise in the light of lexicology and technique 1.4 Historical study of franchise business/ theoretical survey of franchise business 1.4.1 The middle ages 1.4.2 The colonial period 1.4.3 In 1840s 1.4.4 In 1880s 1.4.5 The licensing arrangements 1.4.6 The turn of the century 1.4.7 In 1960s 1.4.8 Three modern franchise leaders 1.5 Classification and categorization of franchise business 1.5.1 Types of franchises based on ownership 1.5.2 Franchises based on operational structure 1.5.3 Types of franchises based on ownership 1.6 Some knowledgeable types of franchise 1.7 The advantages and disadvantages of the mechanism of franchise business 1.7.3 A general overview on the mechanism of a franchise business 1.7.4 Advantages and disadvantages of franchising 1.8 Glimpses (adspectus) of the chapter

3 ______1.1. INTRODUCTION

In the name of ALLAH Almighty who is merciful and compassionate, then gratitude to the Prophet Muhammad (P.B.U.H) who is the source of righteousness.1

The modern man of the current era is enfolded in the arms of western business theories and practices. The dynamic financial system of west is prevailing and inevitable. There is a series of multi-dimensional businesses that had been devised and successfully practiced in west and later they captured the global business community. It would not be considered exaggerated statement if we say that the Western economy has transformed the whole universe into a global market. The modern disciplines of knowledge like Commerce, Management and Finance had transmuted the episteme of human knowledge. Islãmic juristic discourse is also under influence of western economical thought and financial paradigm.2

This is vivid that powerful financial hands and markets are playing a vital role in establishing or destabilizing the political environment of all over the world. Corporate sector through their financial instruments and tools can manipulate and control the policies of governments silently. Franchising is also a dominant way of business in corporate sector to ensure the presence of oneself in financial markets without physical presence. 3

1 Ali, Maulana Muhammad. The religion of Islam. Ahmadiyya Anjuman Ishaat Islam Lahore USA, 2011. 2 Teece, David J. "Business models, business strategy and innovation." Long range planning 43, no. 2 (2010): 172-194. 3 Holme, Richard, and Phil Watts. "Corporate social responsibility." Geneva: World Business Council for Sustainable Development (1999).

4 ______concept of Islãm must be revealed by disclosing its comprehensive teachings about importance of business and wealth. The Qurãn relates the importance of wealth and capital in many verses, as ALLAH ALMIGHTY says;

َو َلۡۡت ۡؤت واْۡٱل ُّس َف َهآ َءۡۡأَ ۡم ََٰو َل ك مۡٱلَّت يۡ َجعَ َلۡٱ َّّۡلل ۡ َل ك ۡمۡق َٰيَ ٗماۡ َوۡٱ ۡر زق و ه ۡمۡۡف ي َهاۡ َوۡٱ ۡك سو ه ۡمۡۡ َوق ول واْۡ َل ه ۡمۡ َق ۡو ٗلۡ َّم ۡع رو ٗفا٥ۡۡ

“And gives not unto the foolish your property which ALLAH has made a means of support for you.(4:5),

Further he says:

َفإ ذَاۡق ضيَ تۡٱل َّص َل َٰوةۡ ۡ َفۡٱنتَ ش رواْۡۡف يۡٱ ۡۡلَ ۡر ضۡۡ َوۡٱۡبتَغ واْۡۡ منۡ َف ۡض لۡٱ َّ ّللۡۡ َوۡٱ ۡذ ك رواْۡۡ ٱ َّّللَۡۡ َكث ي ٗراۡلَّعَلَّ ك ۡمۡت ۡف لۡ حو َن١١ۡۡ

“Then when the prayer is finished, you may disperse through the land, and seek the Bounty of ALLAH (by working or trading etc.)” (62:10)4

Further ALLAH say in the Qurãn:

ر َجا لۡۡ َّلۡت ۡل هي ه ۡمۡت ََٰج َر ةۡ َو َلۡبَۡي ٌعۡ َعنۡ ذ ۡك رۡٱ َّ ّللۡۡ َوإ َقا مۡٱل َّص َل َٰوةۡ ۡ َوإ يتَآ ءۡٱل َّز َكۡ َٰوةۡ ۡ يَ َخاف و َنۡيَ ۡو ٗماۡتَتَ َقلَّ بۡف ي هۡٱۡلق ل و بۡۡ َوۡٱ ۡۡلَۡب ََٰص ر٣٣ۡۡۡ

By the men whom no trade or sale makes neglectful of the remembrance of ALLAH, nor from establishing Salah and paying Zakat; they are fearful of a day in which the hearts and the eyes will be over-turned. (24:37)

For last two decades, Muslims are extending their best efforts to reshape their lives by initiating Shariah based financial institutions and changing their personal businesses according to Islãmic principles. They are struggling to launch some new Islãmic financial institutions and Shariah compliant businesses. Similarly, they are enthusiastic to keep them at par with western

4 Mohsen, N. R. M. "Leadership from the Quran, operationalization of concepts and empirical analysis: Relationship between Taqwah, trust and business leadership effectiveness." Unpublishing Doctoral Dissertation, University Sains Malaysia, Malaysia (2007).

5 ______financial development. In this process, they are trying to not only criticize the west due to hatred and prejudice but accept on logical and religious basis. 5

Figure 1.1

Franchising6 is also one of the modern significant businesses that were not found in such form in primitive epoch and its age is not more than seventy years. Now franchising is enjoying a good business share in the financial market. As the franchising is a new business, hence it needs to be explored and reviewed in perspective of Islãmic juristic theories and practices of business. It is necessary to evaluate the permissibility and impermissibility of prevalent practices of franchise business so that applicability and universality of Islãmic injunctions could be proved. The word ‘’Franchise’’ is derived from Anglo-French word- ‘’Franc’’ and its meaning is ‘’FREE’’ and it is used for both places i.e. as a noun and as a (transitive) verb.7 Actually, it is agreement between the franchisor and the Franchisee. In this kind of business, the owner (franchisor) intend to create a line of ‘’Chain store’ ’but avoid to invest money for buildings and structures. The owner of business offers his services to distribute specific goods and products and bears some other liabilities of his chain. The success of Franchisor depends on the success of franchisee. The risk factor decreases for the franchisee due to

5 Islam, Samsul, and M. Daud Ahmed. "Business process improvement of credit card department: case study of a multinational bank." Business Process Management Journal 18, no. 2 (2012): 284-303. 6 Eroglu, Sevgin. "The internationalization process of franchise systems: a conceptual model." International Marketing Review 9, no. 5 (1992). 7 Swinton, William. New Word-analysis, Or, School Etymology of English Derivative Words: With Practical Exercises in Spelling, Analyzing, Defining, Synonyms, and the Use of Words. Ivison, Blakeman, Taylor, 1879.

6 ______share of liabilities and resultantly both parties earns reasonable profits than a direct investment.8

Technically, a franchise is the agreement or license between two legally independent parties which gives:

• A person or group of people who owns the right of trademark and trade name is called franchisor and a person or group of people who uses the right of trade name and trademark given by the franchisor is called franchisee.

 The franchisee has the right to market a product or service using the operating methods of the franchisor  The franchisee is bound to pay the franchisor fees for these rights  The franchisor is bound according to agreement to provide the rights and support to franchisee.9 a) FRANCHISE AGREEMENT

Figure 1.2

Figure 1.3

8 Goodwin, Bernard. "Franchising in the Economy: The Franchise Agreement as a Security Under Securities Acts, Including 10b-5 Considerations." Bus. Law. 24 (1968): 1311. 9 Knight, Russell M. "Franchising from the franchisor and franchisee points of view." Journal of small business management 24 (1986): 8.

7 ______Franchise agreement in franchise business depends upon two bases i.e.

(A) Franchisor and,

(B) Franchisee.

 FRANCHISOR

Owns trademark or trade name

Provides support: (sometimes) financing

Advertising & marketing

Training

Receives fees

 FRANCHISEE

Uses trademark or trade name

Expands with Franchisor’s support

Pays fees10

FIGURE 1.4

Franchising ‘no doubt’ is known that it has played very positive, increasing and effective role in the national development of economies that is why in some developing countries national government is adopting the franchise business thinking it one of the most important and effective strategies for the development and faster progress in economic development in the country.

It is crystal clear that the failure rate of franchise business is lower and less than all the other conventional and personal businesses but it is also fact that

10 Hadfield, Gillian K. "Problematic relations: franchising and the law of incomplete contracts." Stanford Law Review (1990): 927-992.

8 ______the development and progress of franchising depends on the overall better economic circumstances and ideal atmosphere. It should also be point out that there are chances and possibilities of failure of franchise business because franchising is not ‘’a panacea’’ to all ailments.11

1.1.1. WHAT ARE COMMON FRANCHISE TERMS?

Franchise terms provides information about the franchisor and franchise system to the prospective of franchisee FOLLOWING ARE COMMON FRANCHISE TERMS Business organize establishment – this kind of establishment incorporates not just an item, administration and trademark, yet in addition the entire strategy to direct the business itself, for example, the showcasing plan and operations Manuals Exposure proclamation – otherwise called the UFOC, or Uniform Franchise Offering Circular, the divulgence archive gives data about the franchisor and establishment framework Establishment – a permit that depicts the connection between the franchisor and franchisee including use of trademarks, expenses, support and control Establishment understanding – the legitimate, composed contract between the franchisor and franchisee which tells each party what each should do. Franchisee – the individual or organization that gets the privilege from the franchisor to work together under the franchisor's trademark or exchange name Diversifying – a technique for business development described by a trademark permit, installment of expenses, what’s more, critical help and additionally control Franchisor – the individual or organization that allows the franchisee the privilege to work together under their trademark or, on the other hand exchange name.12

11 Husted, Thomas A., and Lawrence W. Kenny. "The Effect of the Expansion of the Voting Franchise on the Size of Government." Journal of Political Economy 105, no. 1 (1997): 54- 82. 12 Drahozal, Christopher R. "Arbitration Clauses in Franchise Agreements: Common (and Uncommon) Terms." Franchise LJ22 (2002): 81.

9 ______1.1.2. WHAT ARE THE ALTERNATIVES TO FRANCHISING? Notwithstanding diversifying, there are two other prevalent strategies by which organizations extend their market and appropriation channels:  Distributorships  authorizing In a distributorship, the merchant for the most part:  has a legally binding association with the provider  Purchases from the provider in mass and offers in littler amounts  knows about nearby markets and clients  may work with many organizations, something other than the provider/maker  may not get authoritative help and preparing from the provider/maker like a franchisee Some conveyance game plans are like establishments, what's more, the other way around. A franchisee with an incredible arrangement of room in how to maintain the business may look like an autonomous wholesaler. A wholesaler maybe liable to many controls by the provider/maker what's more, start to look like an establishment. SOME MAINSTREAM DISTRIBUTORSHIPS INCLUDE:  Amway  Color Me Beautiful Cosmetics  Mountain Life Spring Water  Knorr Soup Vendor  Campbell's Soup Vending Machines Authorizing, then again, enables a licensee to pay for the rights to utilize a specific trademark. Not at all like establishments, in which the franchisor applies huge control over the franchisee's operations. Licensors are for the most part inspired by gathering eminences and overseeing the utilization of the permit as opposed to impacting the operations of the business. Some mainstream licensors include:  Netscape Communications  Apple Computer  Canon Inc.

10 ______ Woolmark  Compaq Computer  Maker PRODUCER/  Merchant  Maker/  LICENSOR  Maker/  FRANCHISOR  Worker INDEPENDENT  Wholesaler  LICENSEE FRANCHISEE13

Figure 1.5

1.1.3. LITERATURE REVIEW: We first spilt existing examination into three classes and give motivations to this spilt. Each of the classifications is then investigated, and proposals are offered to enhance examine. At long last, approaches for a diversifying research are talked in most recent 20 years, a lot of research on diversifying has been led in different orders, including financial aspects, law, administration, and showcasing and administration science. A noteworthy objective of articles is to give a complete review of the current writing. A moment objective of this article is to list steps that can be taken to enhance

13 Williamson, Oliver E. "Comparative economic organization: The analysis of discrete structural alternatives." Administrative science quarterly (1991): 269-296.

11 ______both the thoroughness and importance of diversifying research. Since this speaks to an underlying diagram of an extremely expansive research field, we have not endeavored to build up a firmly centered research plan around any one point. Rather we show a few moderately broad, generally relevant recommendations that can fundamentally enhance future research.14

Issues of Franchise business have become the focus of intense debate in recent times among theologians,15 ethicist 16 and academicians 17 concerned. The aspects of Franchise business which has been discussed in the past year are scattered and the reader faces very much difficulties to have an overview (summarize) of the topic at a place in general.

Likewise, partial opinions of Muslim jurists are available in different writings and articles for which this space is not enough. As far as complete book or written material is concerned, none of the Muslim scholar yet paid full attention to this topic to cover all the aspects of the issues. So, it leads to encouragement for researchers to go in depth of the issue and bring up a detailed research-work to clarify its all types with the guidance of Shariah towards it, in comparison to the opinions and viewpoints of western writers and scholars who are always leading the Muslim scholarship in research field.18

For this purpose, the following books and articles have been published in the recent years regarding critical appreciation, analysis, examination and evaluation of the current system of business in general and Franchise Business in particular. Although these books and articles have explored the

14 Kulak, Osman, Selcuk Cebi, and Cengiz Kahraman. "Applications of axiomatic design principles: A literature review." Expert Systems with Applications 37, no. 9 (2010): 6705- 6717. 15 Tetlock, Philip E. "Social functionalist frameworks for judgment and choice: intuitive politicians, theologians, and prosecutors." Psychological review 109, no. 3 (2002): 451. 16 De Villiers, Etienne. "The vocation of reformed ethicist in the present South African society: Theological Society of South Africa: papers read at 2004 conference." Scriptura: International Journal of Bible, Religion and Theology in Southern Africa 89, no. 1 (2005): 521-535. 17 Agrawal, Madhu. "Review of a 40-year debate in international advertising: Practitioner and academician perspectives to the standardization/adaptation issue." International Marketing Review12, no. 1 (1995): 26-48. 18 Niazi, Samia Maqbool. "Superficial Approach of Muslim Scholars to Intellectual Property Rights."

12 ______subject in detail, but failed to focus the topic of my research that is the, Franchise Business in Pakistan-An Analytical Study in Shariah Perspective. 19

No doubt much work has been done on franchise business. But to the best of my knowledge there is no research work done on the topic that is being discussed here, especially as analytical study in the light of sharia. Therefore, it can be hoped that this research work will be a good addition to the research on the topic.

So, it has been mentioned many books, Research articles, papers and websites at the end of the synopsis but here it will be described the short introduction of most important relevant books and articles. a) BOOKS  SO, YOU WANT TO FRANCHISEYOUR BUSINESS By HAROLD KESTONBAUM & ADINAM.GENN The book gives good information about franchise strategies that can be useful to expand the business. The author has analyzed some major but common pitfalls in franchise businesses.20  FRANCHISE BIBLE By J. KEUP & PETER E. KEUP This book is believed a master piece to guide in a better way especially in the current scenario of financial world in franchising perspective and best planning for future for business. 21  THE EDUCATED FRANCHISEE By RICK BISIOC This book is an important source to get the knowledge of franchise business in the education sector. It also guides the readers how education and business can be enhanced simultaneously. 22

19 Sarker, Md Abdul Awal. "ISLMIC business contracts, agency problem and the theory of the ISLMIC firm." International Journal of ISLMIC Financial Services 1, no. 2 (1999): 12- 28. 20 Kestenbaum, Harold, and Adina M. Genn. So, you want to franchise your business. Entrepreneur Press, 2008. 21 Keup, Erwin. Franchise bible: how to buy a franchise or franchise your own business. Entrepreneur Press, 2012. 22 Bisio, Rick, and Mike Kohler. The Educated Franchisee: The How-to Book for Choosing a Winning Franchise. Hillcrest Publishing Group, 2011.

13 ______

 FRANCHISING ONE HUNDERED ONE By ANN DUGAN This book is very important and informative for the people who want to adopt this business. It provides good and concise details of the problems in the natural growth of any franchise business.23  HOW TO FRANCHISE YOUR BUSINESS By CLIVE SAWYER The writer of this book is a director of some leading organizations of this business in the U.K. he has given some instruction to remove confusions and complexity about franchising a business.24  HOW TO BUY A FRANCHISE By TAMES A. MEANERY In this book, the writer explains the ways for the people about this business. This book also guides how to evaluate a franchise company and how to analyses financial and sales information and the way of negotiating with accompany. 25

 FRANCHISE BUSINESS By ADE ASEFESO This book is considered a master piece for the readers. The book has discussed powerful winning strategy of the growth of business and economy.26  FRANCHISING FOR DUMMIES By MICHAEL SEID & DAVE THOMAS This book contains handsome information on the issue. Some new strategies with comprehensive and reliable details have been given by the writer for franchise business. 27

23 Siebrasse, Norman, and Anthony Duggan. "Protection of Creators' Rights in Insolvency." Intellectual Property Journal 26, no. 3 (2014): 269. 24 Sawyer, Clive. How to Franchise Your Business: The Plain-Speaking Guide for Business Owners. Live it Publishing, 2011. 25 Meaney, James A. How to buy a franchise. SphinxLegal, 2004. 26 Asefeso, Ade. "Online Marketing with Organic Search Engine Optimization." (2014). 27 Seid, Michael H., and Dave Thomas. Franchising for dummies. John Wiley & Sons, 2006.

14 ______

 FRANCHISE ORGANZIZATIONS By JAFFREY L. BRADACH This book explores a key for the franchisors and franchisee for the success in this field. It also guides the franchisors how to maintain the standard in this field. 28  BECOME A FRANCHISE OWNER By JOEL LIBAVA This writer is called the king of franchising. He also gives the ways and paths for everyone to discover a good franchising and profitable in the life. 29  INTRODUCTION TO Islãmic FINANCE By Maulana Taqi Usmani

The book is written in Islãmic juristic paradigm elaborating the Islãmic modes and approaches for profitable business. The primary rules of Islãmic business and fiancé had been presented in a logical manner.30

 AL-MUADAH ALA AL-HUQOQ (DAWABITUHA WA المعاوضة على الحقوق (TATBIQATUHA Abdullah bin Ibrahim al-Musa31 The book deals with the abstract rights (al-Huqoo al-Mujarrada) that includes the information about franchising. The book can be a good source to study the franchising in Shariah perspective.

االعتياض عن الحقوق المجردة فى الشريعة االسالمية : دراسة 

مقارنة بالقانون الوضعى ونماذج من تطبيقاتة المعاصرة

Husam ud Din Khalil

28 Bradach, Jeffrey L., and T. George. Franchise organizations. Boston, MA: Harvard Business School Press, 1998. 29 Daley, Jason. "A PERFECT FIT? It's not for everyone: Without the right traits, skills and temperament, hopeful franchisees may never succeed. Former broker Joel Libava has made it his mission to dissuade poor candidates from ever getting involved in franchising." Entrepreneur-Irvine (2012): 88. 30 Uusmani, Muhammad Taqi, and Muḥammad Taqī ʻUs̲ mānī. An introduction to ISLMIC finance. Vol. 20. Brill, 2002. 31 Al-Musawi, Muhsin. Islam on the Street: Religion in Modern Arabic Literature. Rowman & Littlefield Publishers, 2009.

15 ______The book provides good information about the admissibility of franchising based upon the opinions of jurists of all schools of thoughts. The author has also pointed out some deviations in franchise business as per Islãmic injunctions. 32 b) ARTICLES  By JA KARTZ ENTREPRENEURIAL SMALL BUSINESS , RP GREEN, entrepreneurial small business, Mc Graw-hill Irwin, year ed.4th (2014) This article gives comprehensive information for entrepreneurs who have some interest in franchise business and small business also.33  BRAND FRANCHISE EXTENSION: NEW PRODUCT BENEFITS FROM EXISTING BRAND NAMES By EM TAUBER, Brand franchise extension: new products benefit from existing brand names, Elsivier, 1981 This article discusses the information about new brands and new products in the shape franchise business. 34  THE FRANCHISE LIFE CYCLE AND THE PENROSE EFFECT 35 By RS THOMPSON, the franchise life cycle and the Penrose effect, Elsevier, volume 67 NOVEMBER 20 It has been discussed the way of multiunit franchisee for the readers.  FRANCHISOR USE OF INFLUENCE AND CONFLICT IN A BUSINESS FORMAT FRANCHISE SYSTEM By S TIKOO, Franchise use of influence and conflict in a business format franchise system, international journal of retail & distribution management, volume 33, issue 5, 2005

حسامۡالدينۡخليلۡفرج.ۡ"العتياضۡعنۡالحقوقۡالمجردةۡفيۡالشريعةۡاۡلسالمية:ۡدراسةۡمقارنةۡبالقانونۡالوضعيۡوۡنماذجۡمنۡ 32 تطبيقاتهۡالمعاصرة."ۡ)1122(. 33 Katz, Jerome A., and Richard P. Green. Entrepreneurial small business. Vol. 200. McGraw-Hill/Irwin, 2009. 34 Tauber, Edward M. "Brand franchise extension: new product profits from existing brand names." In Presentation at the New Product Marketing Workshop, pp. 1-17. 1979. 35 Thompson, R. Steve. "The franchise life cycle and the Penrose effect." Journal of Economic Behavior & Organization 24, no. 2 (1994): 207-218.

16 ______It is discussed in this article how to distribute the goods and the products and how to manage them. 36  THE INTERNATIONAL BUSINESS ENVIRONMENT OF FRANCHISING IN RUSSIA By N ANTTONEN, M TUUNANEN, I Alone, the international business environment of franchising in Russia, academy of marketing, 2005 It is also very informative and conducive for the readers especially in connection with the environment of Russia. 37

1.1.4. JUSTIFICATION AND LIKELY BENEFITS The business is an essential and central part of a normal human life. Regardless of creed and religion, no one can escape from this phenomenon. Muslims are a major demographical part of the globe and if they do not enter to financial competition there is no chance of their uplift and fortification. The power of money and wealth can defeat all type of armies without fight even in the home. This is necessary to highlight the material perspective of Islãmic teachings and to prove that Islãm does not produce monks and clerics only but this is a religion of common human life that concentrates on this temporal world. Islãm gives a vast concept of worship that encompasses trading, eating and playing. Thus, if Islãm keeps his followers abreast with modern age, it is necessary to be proved especially in financial perspective. The research on a business issue can be best way to highlight the Islãmic teachings that are practicable in all environments. Moreover, this research is beneficial to ensure that there no ban to trade among Muslims and Non- Muslims. Muslims can enhance their capacity with the help of non-Muslims in business and trade. It might be a good way for inter-religious harmony to promote business among believers of different religions. The business can be good medium for interfaith dialogue and peace in the world. In Islãmic

36 Tikoo, Surinder. "Franchisor use of influence and conflict in a business format franchise system." International Journal of Retail & Distribution Management 33, no. 5 (2005): 329- 342. 37 Anttonen, Noora, Mika Tuunanen, and Ilan Alon. "The international business environments of franchising in Russia." Academy of Marketing Science Review 2005 (2005): 1.

17 ______world some new ideas can be floated for unity of Muslim countries to eliminate their sectarian differences. 38

1.1.5. PLAN OF WORK OR ORGNIZATION OF THE STUDY In chapter one, it will be discussed some important aspects of Franchise Business. In section one, the origins of the words of the topic have been explained. It has been discussed that from which language the words have been driven and in what sense these words have been used and at present, in what sense are being used, likewise, some terms have been used and also explained. In addition to do this, the literal and technical meanings have also been simplified / explained / elucidated and history of this type of business has also been discussed. In second section Franchise Business has been explained lexically and technically to the depth. In third section, historically study of franchise business has been stated and in fourth section classifications and categorizations of Franchise Business have been settled.

In second chapter, there have been given the details of legal formation of Franchise Business and its procedure. Some legal issues and problems have been discussed in this chapter. Furthermore, in section one, the theory of Law, its definition, its nature and its types has been agitated and procedure has also been brought under discussion especially in PAKISTAN. In second section, a detailed note and comprehensive summary has been given in the form of critical appraisal about laws and its implications about Franchise Business. In third section, comprehensive note/summary has been attached in a very fantastic way so that every reader may know the difference between the method and procedure and way of implementations of Franchise Business in PAKISTAN and other Muslim countries i.e. MALAYSIA and DUBAI.

In the third chapter, it is discussed that when the Franchise Business emerged in PAKISTAN and how it spilled over the country. It is also discussed and given the details about the historical development of

38 Holes, Clive. "Bahraini dialects: sectarian differences and the sedentary/nomadic split." Zeitschrift für arabische Linguistik 10 (1983): 7-38.

18 ______Franchise Business in PAKISTAN. An analytical review of Franchise Business in education sector has also brought under discussion. It is also discussed in the line of food industry and in the other sectors of Business in the country i.e. pharmaceutical sector, software sector, garment sector and automobile sector. At the end of this chapter, a comprehensive and critical note/summary has also been managed to make the readers understand the real object of the topic.

The fourth chapter is about the fundamentals of principles of Islãmic business and trade. As Islãm is a complete code of life. Therefore, it is not merely religious or economic system, thus its teaching entails all spheres of life. Islãm did not accept separation in spiritual and materialistic life. Similarly, Islãm deals individually as well as collectively the whole humanity and also combines business and worship. A comprehensive and positive discussion has been entertained about usury, its types, principles of Islãmic trade and business and basic rules of Islãmic Economic System.

In the fifth chapter, which is the last chapter of the thesis, a critical note and critical appraisal, has been given for the readers and the researchers in the perspective of the Islãmic teachings. It is also stated that to what extend there is a room of admissibility and inadmissibility of ‘’ INTELLECTUAL PROPERTY RIGHTS’’ in Islãm. A juristic discussion has been entertained. In addition to this, a concept of ‘’Legal Person’’ has been explained in the light of Shariah and its validity has also been mentioned. In the last section of this chapter, different aspects of Franchise Business have been brought to light for the readers and their validation has also been discussed in details in the light of Shariah. Final conclusion of the thesis has been encapsulated at the end of this chapter. Some practicable and feasible suggestions and recommendations have been reasonably settled and maintained.

1.1.6. PLACE OF WORK AND FACILITIES AVAILABLE Of course, the primary place of research would be the rich library of Department of Islãmic Studies and then following is the list of indispensable sources and facilities which are required to complete the proposed research:

References section of Main Library (Punjab University, New Campus)

19 ______Recognized Magazines & journals

Internet (only authentic and official websites would be consulted)

To tackle new allegations, off course the opinion of different scholars will be considered.

On the scholarship of HEC Islãmabad, six months of research and completion of all the chapters of the thesis will be spent in the University of Sains Malaysia (USM), in the State of Penang of Malaysia with effect from 03-05-2017 to 02-11-2017.

1.1.7. RESEARCH OBJECTIVES The core objective of my research is to compare and analyze the rules and laws a franchise business in the light of Shariah. This core objective can be expressed in following points:

 To do effort to find out the clear concept of franchise business in the light of Shariah  To study the commonalities and differences in franchise business and Islãmic rules and laws of business  To elaborate the modern trends and approaches of franchise business in Islãm.  To highlight how franchise business leads to a cultural merger?  To search out impact of franchise business on globalization.  To find out the controversies and differences between franchise business and Islãmic teachings.  To study the advantages and disadvantages of the franchise business.

To decipher the depth of fact that to what extent the mechanism of franchising is tantamount to the system of Islãmic trade and business

20 ______1.1.8. RESEARCH QUESTIONS

Following questions will be responded during this research:

 What is the denotative and connotative meaning of franchise business and its types and classifications what is its historical and legal Development in Pakistan?  What are the legal formations of franchise business and its procedure in Pakistan?  What is the historical development of franchise business in Pakistan  What are the foundations of Islãmic franchise business?  Can we declare the prevailing Franchise business aligned to Islãmic Shariah Principles?  Can we suggest some useful changes in current Franchise business in the light of Islãmic business Laws? 1.1.9. RESEARCH METHODOLOGY:

The main approaches of this research are analytical, critical and descriptive. Following steps will be followed in this research.

 The nature of this research will be qualitative.  The Chicago manual of style will be adopted in this research.  Critical and descriptive approaches will also be used in this research.  The abstract and abbreviations of the terms will be mentioned in the preface.  Difficult terms and important personalities will be explained in the foot notes.  In the Islãmic perspective, primary source with modern interpretations will be used.  Indexes of Verses, hadith, personalities and countries will be mentioned at the end.  In the Modern perspective, books, encyclopedia, articles, papers, reports, websites and scholar’s interviews will be quoted in the research.  Respectively, Acknowledgement, preface and Table of Contents will be presented at the beginning whereas; Conclusion, Index, Bibliography

21 ______

(alphabetically arranged) will be entered at the end of thesis. (Franchise Business in Pakistan – An Analytical Study in Shariah Perspective). 1.1.10. ORGANIZATION OF THE CHAPTERS

CHAPTER ONE: LITERAL &INTRODUCTORY DISCUSSIONS UPON FRANCHISE & BUSINESS

Section 1: linguistic Origin of Business & Terminological Meanings & History

Section 2: Franchise in lexicological & technical Perspective

Section 3: Historical study of Franchise Business

Section 4: Classification & categorization of Franchise Business

CHAPTER TWO: LEGAL FORMATION OF FRANCHISE BUSINESS & ITS PROCEDURE

Section 1: Definition, Nature and Types of Law-A Descriptive Study

Section 2: Franchise Business Law & its implications: -A critical study

Section 3: A Comparison among Franchise Legal Procedure in Pakistan & Some Muslim Countries

CHAPTER 3: FRANCHISE BUSINESS IN PAKISTAN:-INCEPTION TO DATE

Section 1: Historical Development of Franchise Business in Pakistan

Section 2: Franchising in Education Sector: -Analytical review

Section 3: Franchising in Food Industry

Section 4: franchising Business in Other Business Sectors

CHAPTER FOUR: PRINCIPLES OF ISLÃMIC FINANCE AND TRADE

Section1: Islãmic Commandment regarding Interest and it’s all modern forms

Section 2: Speculation and Islãmic Principle of Trade

Section 3: Islãmic Modes of Financing

Section 4: Concept of Shariah compliance: merits and demerits

22 ______

CHAPTER FIVE: CRITICAL APPRECIATION OF FRANCHISE BUSINESS IN Islãmic PERSPECTIVE

Section1: Admissibility or Inadmissibility of ‘’INTELLECTUAL PROPERTY RIGHTS’’_ Juristic Discussion.

Section 2: Concept of ‘’ Legal Person ‘’ & its validity in Shariah.

Section 3: Different aspects of Franchise & their Islãmic Validation.

Section4: FINAL CONCLUSION

Section5: SUGGESTIONS AND RECOMMENDATIONS

1.2. LITERAL & INTRODUCTORY DISCUSSION UPON FRANCHISE & BUSINESS 1.2.1. LINGUISTIC ORIGIN OF BUSINESS (ETYMOLOGY)& TERMINOLOGICAL MEANING & HISTORY: Etymology is the study of words and their origins. It throws light on the complete and comprehensive history of the words. Now, it needs to explain the origin of the word “Business”. When a researcher goes to explore the history and the origin of this word it is known that the spellings of this word (Business) were written as “Bisignes” showing the meaning occupation, and care etc. It was derived from the word “Bisig” which means busy, diligent, and careful etc.39 The history shows that in mid- fourteenth century this sense of “being busy” and “engaged” is obsolete and replaced the word by busyness. History also esposes that the sense of persons and occupation was used first time in fourteen c. (It indicates the old English word “BISIG” as an adjective). Then after sometime it was used as noun in the sense of “occupation and employment”. This word first time recorded in 1727 in the sense of “trade and commercial activities” etc. When a reader, a researcher or a scholar goes ahead then he finds the word “Business card” first time used in 1840 and the word “Business” as the “phrase business” usually used in 1865.40 This time this word directly and readily was evident and manifest

39 Harper, Douglas. "Online etymology dictionary." (2001). 40 Wood, A., and K. Ward. "The geopolitical etymology of the business climate, mimeograph." Department of Geography, University of Kentucky (2007).

23 ______of the action done about Business. After this time, many words related to this field began to be used such as;  Business man, in 1826  Agri Business (Agri mean agriculture plus Business) 1955  Biz, it was used in American English in 1849  Busyness, it was used in 1849 in Thoreau in meaning of busy  Big, it was first used in sense Big business in 1913  Show-  CONGLOMERATE  LEISURE  OFF-SEASON  COBOL  Cc  FIRM  NEGOTIATION  MILLING  FISHERY  WHALE  RAILROADING  STATE-HOUSE  EXPRESS  OUTSET  MANAGER  BALANCE-SHEET  PROCEDURE  PATRONIZE 41

41 Papineni, Kishore Ananda, Salim Estephan Roukos, and Robert Todd Ward. "Statistical translation system with features based on phrases or groups of words." U.S. Patent 5,991,710, issued November 23, 1999.

24 ______1.2.2. WHAT IS TERMINOLOGY?

Terminology may be defined as the body which contains the technical or special words or phrases or terms that are used in a special, particular and technical field of study, theory, subject, business, sport or science. 42

Wording is the investigation of terms and their utilization. Terms are words and compound words or multi-word articulations that in particular settings are given particular implications—these may go amiss from the implications similar words have in different settings and in regular dialect. Wording is a train that reviews, in addition to other things, the advancement of such terms and their interrelationships inside a particular space. Phrasing varies from etymology, as it includes the investigation of ideas, reasonable frameworks and their marks (terms), while etymology thinks about words and their implications. 43

Phrasing is a train that methodically ponders the "naming or assigning of ideas" specific to at least one subject fields or areas of human movement. It does this through the examination and investigation of terms in setting to document and advancing steady utilization. Phrasing can be restricted to at least one dialects (for instance, "multilingual wording" and "bilingual wording"), or may have an interdisciplinary concentrate on the utilization of terms in various fields.

The reach of wording comprises basically of the accompanying perspectives:

 analyzing the ideas and idea structures utilized as a part of a field or space of action  identifying the terms doled out to the ideas  In the instance of bilingual or multilingual wording, building up correspondences between terms in the different dialects  compiling the wording, on paper or in databases  managing wording databases

42 Palmini, André, I. Najm, G. Avanzini, T. Babb, R. Guerrini, N. Foldvary-Schaefer, G. Jackson et al. "Terminology and classification of the cortical dysplasias." Neurology 62, no. 6 suppl 3 (2004): S2-S8. 43 Fournaris, Dean T. "The Inadvertent Employer: Legal and Business Risks of Employment Determinations to Franchise System." Franchise LJ 27 (2007): 224.

25 ______ creating new terms, as required  Sorts of terminology

A qualification is made between two sorts of wording work:

 Ad hoc chip away at wording, which manages a solitary term or a set number of terms  Systematic gathering of wording, which manages every one of the terms in a particular subject field or space of action, frequently by making an organized philosophy of the terms inside that area and their interrelationships.

Impromptu wording is common in the interpretation calling, where an interpretation for a particular term (or gathering of terms) is required rapidly to take care of a specific interpretation issue.

Phrasing as a discipline a terminologist plans to sharpen all out association by enhancing the precision and substance of its wording. Specialized businesses and institutionalization foundations gather their own particular glossaries. This gives the consistency required in the different zones—fields and branches, developments and claims to fame—to work with center wording to then offer material for the reach’s conventional and doctrinal writing.

Wording is likewise at that point enter in limit crossing issues, for example, in dialect interpretation and social epistemology. Wording fabricates connects and to broaden one zone into another. Interpreters examine the wording of the dialects they decipher. Phrasing is educated close by interpretation in colleges and interpretation schools. Expansive interpretation offices and interpretation authorities have a terminology segment. 44

Phrased theories

44 Dnes, Antony W. "'Unfair'Contractual Practices and Hostages in Franchise Contracts." Journal of Institutional and Theoretical Economics (JITE)/Zeitschrift für die gesamte Staatswissenschaft (1992): 484-504.

26 ______Phrased speculations incorporate general hypothesis of terminology, socioterminology, open hypothesis of terminology, sociocognitive terminology, and edge based terminology.45

Some important business terms that are used in business field are as follows;

 Business plan  Marketing plan  Market research  Incorporation  Capital  Business insurance  Financial management  Record keeping  Product or service  Customer  Pricing46 1.2.3. BUSINESS HISTORY History of business is not my topic, so I shall not go into the depth, I shall manage only the glimpses of business history. Business history is a branch of history which throws light on history of business, it discusses the methods and regulations of government. It also brings in discussion the biographies of persons companies. Actually, it is about the economic history.

First of all, it was introduced in USA. Robber Baron played an important role in this line. After professor N. S. B. Gras established a discipline in this field at HAVARD UNIVERSITY GRDUATE SCHOOL OF BUSINESS ADMINISTFRATION, IN 1927. 47 After 1960, ALFRED D. CHANDLER (1918-2007) was a great scholar at HAVARD BUSINESS SCHOOL who did grate work in this field. In 2003 LAMOREAUX ET AL. introduced business

45 MacNeill, Eoin. "Ancient Irish law. The law of status or franchise." Proceedings of the Royal Irish Academy. Section C: Archaeology, Celtic Studies, History, Linguistics, Literature36 (1921): 265-316. 46 Becker, Jörg, Michael Rosemann, and Christoph von Uthmann. "Guidelines of business process modeling." In Business Process Management, pp. 30-49. Springer Berlin Heidelberg, 2000. 47 Aldrich, Howard E., and C. Marlene Fiol. "Fools rush in? The institutional context of industry creation." Academy of management review 19, no. 4 (1994): 645-670.

27 ______history, its advantages and disadvantages in detail48. So, all the writers and authors appreciated the efforts struggles about this work greatly. As a result, the history of “New Economy” came into the being. This work introduces the important points, issues and also problems with solutions in the people. So, during the 19th and 20th centuries people of this field were well aware and conversant of the important arguments, implications and their importance in this field. So, this period was very important and valuable in the history of Business in U.S.A.49 a) FRANCE The American historians worked and discovered many theories, ideas and practical actions in the history of Business in France also. It is clear that all the works done in this field is related to the late, 19th century. All the authors and writers accepted this fact including the French scholar also that the efforts about this field very great and very important to clarify and to introduce all the thoughts and theories done by the American historians.50 b) LATIN AMERICA In 2008 the well-versed scholar in this field namely, BARBERO analyzed and examined the LATIN AMEICA Business history and stated that this history was developed in 1960s. And after this it was developing till 1980s rapidly. He also spoke that LATIN AMERICAN Business historians need to become expert and diligent in the Business history and methodology. So that they may get and reach the economic depth.51 c) BRITAIN Business history was introduced in BRITAIN in 1950s. So, the history tells us that so many books were written and similarly many articles in this field were published also. Now we have to decide to conclude to what extent the BRITAIN historians have done work in this field. So, we have to say that the

48 Lamoreaux, Naomi R., Daniel MG Raff, and Peter Temin. "Beyond markets and hierarchies: Toward a new synthesis of American business history." The American Historical Review 108, no. 2 (2003): 404-433. 49 Wilkins, Mira. The maturing of multinational enterprise: American business abroad from 1914 to 1970. Vol. 27. Cambridge, Mass.: Harvard University Press, 1974. 50 Miller, Michael. "Business History in France." Business and Economic History (1979): 31-39. 51 Szmrecsanyi, Tamas, and Steven Topik. "Business History in Latin America." Enterprise & Society 5, no. 2 (2004): 179-186.

28 ______leaders of BRITAIN emphasize upon the people and students to get knowledge in this field. They also established a center about the study namely “LIVER POOL UNIVERISTY MANAGEMENT SCHOOL”. This school promoted the management strategy and also worked to promote networks. The new themes and thoughts relating to this field enabled the historians of this age to face challenge of the time and conclude the British economy on the sublime.52 After describing the detail history of business, it is suitable to speak about some introductory words upon some important related words to business. Some important related words are as follows,  Business  Trade  Finance  Commerce  Market or marketing  Company  Firm  Enterprise  Entrepreneur  Organization53  Corporation  Entity d) TYPES OF BUSINESS

Some important types of business that are prevailing in the world, are in the following;

 SOLE PROPRIETORSHIP A Sole Proprietorship is one individual or wedded couple in business alone. Sole proprietorships are the most widely recognized type of business structure. This sort of business is easy to frame and work, and may appreciate more noteworthy adaptability of administration, less legitimate

52 Jeremy, David J. A business history of Britain, 1900-1990s. Oxford University Press, USA, 1998. 53 Stensmo, J. Magnus. "System and method of finding documents related to other documents and of finding related words in response to a query to refine a search." U.S. Patent 7,269,546, issued September 11, 2007.

29 ______controls, and less charges. In any case, the entrepreneur is by and by at risk for all obligations caused by the business. 54

 GENERAL PARTNERSHIP A General Partnership is made out of at least 2 people (more often than not a wedded couple) who consent to contribute cash, work, or expertise to a business. Each accomplice shares the benefits, misfortunes, and administration of the business, and each accomplice is actually and similarly obligated for obligations of the organization. Formal terms of the organization are normally contained in a composed association assention. 55  LIMITED PARTNERSHIP (LP) A Limited Partnership is made out of at least one general accomplices and at least one constrained accomplices. The general accomplices deal with the business and offer completely in its benefits and misfortunes. Restricted accomplices share in the benefits of the business; however, their misfortunes are constrained to the degree of their speculation. Restricted accomplices are normally not engaged with the everyday operations of the business.

Recording with the Washington Secretary of State is required. 56

 LIMITED LIABILITY PARTNERSHIP (LLP) A Limited Liability Partnership (LLP) is like a General Partnership aside from that typically an accomplice doesn't have individual obligation for the carelessness of another accomplice. This business structure is utilized for the most part by experts, for example, bookkeepers and legal counselors. Recording with the Washington Secretary of Stateis required.

 LIMITED LIABILITY LIMITED PARTNERSHIP (LLLP) A Limited Liability Limited Partnership is a Limited Partnership that turns into a LLLP by including an announcement to that impact in its authentication of restricted organization. This sort of business structure may shield general

54 Mower, C. Leiren. "Bodies in Labor: Sole Proprietorship and the Labor of Conduct in The Coquette." American Literature 74, no. 2 (2002): 315-344. 55 Long, Joseph C. "Partnership, Limited Partnership, and Joint Venture Interests as Securities." Mo. L. Rev. 37 (1972): 581. 56 Wineburg, Robert J. A limited partnership: The politics of religion, welfare, and social service. McGill-Queen's Press-MQUP, 2001.

30 ______accomplices from risk for commitments of the LLLP. Documenting with the

Washington Secretary of State is required. 57

 CORPORATION A Corporation is a more mind-boggling business structure. An enterprise has certain rights, benefits, and liabilities past those of a person. Working together as a company may yield impose or money related advantages, however these can be balanced by different contemplations, for example, expanded authorizing expenses or diminished individual control. Companies might be framed for benefit or not-for-profit purposes. Documenting with the

Washington Secretary of State is required. 58

 NONPROFIT CORPORATION A Nonprofit Corporation is a legitimate element and is regularly rush to facilitate a perfect or objective as opposed to in light of a legitimate concern for benefit. Numerous not-for-profits serve the general population intrigue, yet some take part in private segment exercises. On the off chance that your philanthropic association is, or plans to, raise stores from general society, it might likewise be required to enroll with the Charities Program of the Washington Secretary of State. Magnanimous exercises may require extra enlistment. Contact the Office of the Secretary of State for more data. 59

 LIMITED LIABILITY COMPANY (LLC) A Limited Liability Company (LLC) is shaped by at least 1 people or elements through an exceptional composed assention. The understanding subtle elements the association of the LLC, including arrangements for administration, assignability of interests, and dissemination of benefits and misfortunes. LLCs are allowed to participate in any legal, revenue driven business or action other than saving money or protection. 60

57 Hamilton, Robert W. "Registered limited liability partnerships: present at the birth (nearly)." U. Colo. L. Rev. 66 (1994): 1065. 58 Davis, Gerald F., and J. Adam Cobb. "The virtual corporation." In MIT Center for Advanced Engineering Study. 1992. 59 Oleck, Howard Leoner. Nonprofit corporations, organizations, and associations. Prentice Hall, 1988. 60 Sargent, Mark A. "Are limited liability company interest’s securities." Pepp. L. Rev. 19 (1991): 1069.

31 ______ MASSACHUSETTS TRUST A Massachusetts Trust is a joined business with the property being held and overseen by the trustees for the investors. The trustees are considered representatives since they work for the trust. 61  TRUST A Trust is a lawful relationship in which one individual, called the trustee, holds property for the advantage of someone else, called the recipient. 62

 JOINT VENTURE A Joint Venture is framed for a restricted period of time to do a business exchange or operation.63

 TENANTS IN COMMON A Tenants in Common enables at least 2 individuals to involve a similar business while holding separate characters as to resources or liabilities coming about because of business exercises. 64

 MUNICIPALITY

A Municipality is an open organization built up as a subdivision of a state for neighborhood legislative purposes. 65

61 Aaron, Henry J. "Massachusetts Trust as Distinguished from Partnership." Ill. LR 12 (1917): 482. 62 Fukuyama, Francis. Trust: The social virtues and the creation of prosperity. No. D10 301 c. 1/c. 2. Free Press Paperbacks, 1995. 63 Harrigan, Kathryn Rudie. Managing for joint venture success. Simon and Schuster, 1986. 64 Wilkerson, Will Allen. "Creditors' Rights Against Tenants by the Entirety." Tenn. L. Rev. 11 (1932): 139. 65 Gottschalk, Florian, Teun AC Wagemakers, Monique H. Jansen-Vullers, Wil MP van der Aalst, and Marcello La Rosa. "Configurable process models: Experiences from a municipality case study." In International Conference on Advanced Information Systems Engineering, pp. 486-500. Springer, Berlin, Heidelberg, 2009.

32 ______ ASSOCIATION An Association is a sorted out gathering of individuals who share in a typical intrigue, action, or reason.66 1.3. FRANCHISE IN LEXICOLOGICAL AND TECHNICAL PERSPECTIVE 1.3.1. WHAT IS LEXICOLOGY? Lexicology may be defined as branch of linguistics which deals with the study and explanation of the form, information about meaning and way of using the words. It also clarifies the signification of the words and justify the application of the words.67 a) LEXICOLOGY

Lexicology is the piece of semantics which contemplates words. This may incorporate their temperament and capacity as symbols, their importance, the relationship of their significance to epistemology by and large, and the tenets of their arrangement from littler components (morphemes, for example, the English - ed marker for past or un-for nullification; and phonemes as essential sound units). Lexicology likewise includes relations between words, which may include semantics (for instance, love versus love), induction (for instance, comprehend versus unbelievably), utilize and sociolinguistic qualifications (for instance, substance versus meat), and some other issues associated with dissecting the entire dictionary of a dialect. 68

The term initially showed up in the 1970s, however there were lexicologists basically before the term was begat. Computational lexicology is a related field (similarly that computational semantics is identified with etymology) that

66 Rooth, Mats. "Association with focus." (1985). 67 Geeraerts, Dirk. Diachronic prototype semantics: A contribution to historical lexicology. Oxford University Press, 1997. 68 Lipka, Leonhard. An outline of English lexicology: lexical structure, word semantics, and word-formation. Vol. 3. Walter de Gruyter, 1990.

33 ______arrangements with the computational investigation of word references and their substance. 69

A unified science to lexicology is etymology, which likewise thinks about words, yet principally in connection with lexicons – it is worried about the incorporation of words in lexicons and from that point of view with the entire dictionary. At times etymology is thought to be a section or a branch of lexicology, yet appropriately, just lexicologists who really compose word references are word specialists. Some think about this a refinement of hypothesis versus hone.70 b) ETYMOLOGY

"Lexicology" gets from the Greek λεξικόν vocabulary, neut. of λεξικός lexikos, "of or for words", from λέξις lexis, "discourse", "word" (thusly from λέγω lego "to state", "to speak" and - λογία - logia, "the investigation of", a postfix got from λόγος logos, among others signifying "discourse, address, talk, quote, think about, computation, reason", thusly additionally from λέγω. 71 c) LEXICAL SEMANTICS

Semantic relations between words are of numerous sorts, for instance homonymy, antonym, metonymy, and patronymic. Semantics as particularly associated with lexicological work is called lexical semantics. Lexical semantics is to some degree not the same as the semantics of bigger units, for example, expressions, sentences, and finish messages (or talks), since it doesn't include a similar level of compositional semantics complexities; notwithstanding, the idea of "word" can be to a great degree complex, especially in agglutinative dialects.

69 Byrd, Roy J., Nicoletta Calzolari, Martin S. Chodorow, Judith L. Klavans, Mary S. Neff, and Omneya A. Rizk. "Tools and methods for computational lexicology." Computational Linguistics 13, no. 3-4 (1987): 219-240. 70 Briscoe, Ted, Ann Copestake, and Bran Boguraev. "Enjoy the paper: Lexical semantics via lexicology." In Proceedings of the 13th conference on Computational linguistics- Volume 2, pp. 42-47. Association for Computational Linguistics, 1990. 71 Schank, Gerd. "Vorschlag zur Erarbeitung einer operationalen Fremdwortdefinition (A Proposal for Establishing a Functional System for Defining Foreign Words)." deutsche sprache (1974).

34 ______Outside however identified with etymology, different types of semantics are considered, for example, social semantics and computational semantics (the last may allude either to computational lexicology or scientific rationale. 72 d) HISTORY

Lexical semantics may not be comprehended without a concise investigation of its history. e) PRESTRUCTURALIST SEMANTICS

Semantics as an etymological train has its start amidst the nineteenth century, and on the grounds that etymology at the time was overwhelmingly diachronic, along these lines lexical semantics was diachronic as well – it ruled the scene between the times of 1870 and 1930. Diachronic lexical semantics was intrigued unmistakably in the difference in significance with prevalently semasiological approach, taking the idea of importance in a mental perspective: lexical implications were thought to be mental substances), musings and thoughts, and importance changes are clarified as coming about because of mental procedures. 73 f) STRUCTURALISM AND NEOSTRUCTURALIST SEMANTICS

With the ascent of new thoughts after the ground break of Saussure's work, Prestructuralist diachronic semantics was extensively scrutinized for the nuclear investigation of words, the diachronic approach and the blend of nonlinguistic circles of examination. The examination ended up plainly synchronic, worried about semantic structures and barely phonetic structures.

Semantic basic relations of lexical elements can be found in three ways:

 Semantic comparability

72 Geeraerts, Dirk. Diachronic prototype semantics: A contribution to historical lexicology. Oxford University Press, 1997. 73 Steblin-Kaminski, I. M. "Essays on History of lexicology of Pamir Languages. M." Science (1982).

35 ______ Lexical relations, for example, synonymy, antonym, and hyponymy  Syntagmatic lexical relations were recognized

WordNet "is a sort of an online electronic lexical database composed on social standards, which now contains almost 100,000 ideas" as Dirk Geeraerts states it. g) CHOMSKYAN SCHOOL (GENERATIVE SEMANTICS)

Generative language specialists soon researched two contradicting perspectives of the place of semantics in a linguistic use, which at last conflicted in a profuse debate, these were interpretative and generative semantics. h) INTELLECTUAL SEMANTICS (COGNITIVE SEMANTICS)

Intellectual lexical semantics is believed to be most gainful of the current methodologies. 74 i) PHRASEOLOGY

Another branch of lexicology, together with etymology is style. It thinks about compound implications of at least two words, as in "falling down in buckets". Since the entire importance of that expression is very different from the significance of words included alone, style analyzes how and why such implications come in ordinary utilize, and what perhaps are the laws administering these word blends. Diction additionally explores sayings. 75 j) ETYMOLOGY

Since lexicology considers the significance of words and their semantic relations, it frequently investigates the inception and history of a word, i.e. its historical background. Etymologists break down related dialects utilizing a system known as the similar technique. Along these lines, word roots have

74 Gordon, W. Terrence. "A history of semantics." (1985). 75 Howarth, Peter Andrew. Phraseology in English academic writing: Some implications for language learning and dictionary making. Vol. 75. Walter de Gruyter, 1996.

36 ______been discovered that can be followed the distance back to the birthplace of, for example, the Proto Indo-European dialect.

Derivation can be useful in illuminating some flawed implications, spellings, and so forth. And is additionally utilized as a part of etymology. For instance, etymological lexicons give words their chronicled beginnings, change and improvement. k) LEXICOGRAPHY

A recognizable case of lexicology at work is that of lexicons and thesauri. Word references are books or PC projects (or databases) that really speak to lexicographical work, they are opened and purposed for the utilization of open.

As there are a wide range of sorts of lexicons, there are a wide range of sorts of etymologists.

Inquiries that etymologists are worried about are for instance the challenges in characterizing what straightforward words, for example, 'the' mean, and how compound or complex words, or words with numerous implications can be plainly clarified. Likewise, which words to keep in and which not to incorporate into a lexicon. 76 l) NOTED LEXICOGRAPHERS

SOME PROMINENT WORD SPECIALISTS INCLUDE:  Dr. Samuel Johnson (September 18, 1709 – December 13, 1784)  French word specialist Pierre Larousse (October 23, 1817 – January 3, 1875)  Noah Webster (October 16, 1758 – May 28, 1843)  Russian word specialist Vladimir Dal (November 10, 1801 – September 22, 1872) 77

76 Hartmann, Reinhard Rudolf Karl, and Gregory James. Dictionary of lexicography. Psychology Press, 1998. 77 VOOR, HN SlEBURGH EN ZIJN BETEEKENIS, and DE JAVAANSCHE. "giving this long and painstaking work the permanent value one would expect from such an authority as Alb. C. Kruyt. There are sections, like that on the name for the shaman (pp. 500-1), which will be of interest to philologists and lexicographers."

37 ______m) LEXICOLOGISTS  Peter Rolf Lutzeier: German Lexicologist  Damaso Alonso (October 22, 1898 - January 25, 1990): Spanish scholarly commentator and lexicologist  Roland Barthes (November 12, 1915 – March 25, 1980): French essayist, commentator and lexicologist  Ghil'ad Zuckermann (conceived June 1, 1971): etymologist, Pentecostal and lexicologist, creator of Language Contact and Lexical Enrichment in Israeli Hebrew 78 1.3.2. WHAT IS A TECHNIQUE? It is defined as a body of special and technical approaches, ways and methods that are used in special and particular field area such as in field of science, arts, sports, business, research and humanities etc.79

ORIGIN

It is from French and Latin word” TECHNICUS”

First Known Use; 181780

A strategy is a methodology to finish an undertaking:

 Technology, the investigation of or a gathering of methods  Skill, the capacity to play out an errand  Scientific strategy, any methodical technique to acquire data of a logical sort  Art procedures and materials 81 a) Procedure may likewise allude to:  The Techniques, a Jamaican rocksteady vocal gathering of the 1960s

78 WANG, Ning, and Yi-qing HUANG. "On the Differences between the Etymological Meanings and the Lexicological Meanings [J]." Journal of Beijing Normal University (Social Science Edition) 4 (2002): 013. 79 Feinberg, Andrew P., and Bert Vogelstein. "A technique for radiolabeling DNA restriction endonuclease fragments to high specific activity." Analytical biochemistry 132, no. 1 (1983): 6-13. 80 Runia, David. "Etymology as an Allegorical Technique in Philo of Alexandria." (2004). 81 Likert, Rensis. "A technique for the measurement of attitudes." Archives of psychology (1932).

38 ______ The Technique, the school daily paper of the Georgia Institute of Technology  Technique, the yearbook of the Massachusetts Institute of Technology  Technique (collection), a 1989 collection by British shake aggregate New Order  Technique (band), British female synth pop band in the 1990s  "Technique", an instrumental track by Link in Park on their Hybrid Theory EP in 1999 82 b) SPECIALIZED MAY ALLUDE TO:  Technical (vehicle), a battling vehicle in view of a pickup truck  Technical investigation, a teach for anticipating the future bearing of costs through the investigation of past market information  Technical drawing, otherwise called drafting  Technical passing metal, a subgenre of death metal that spotlights on complex rhythms, riffs, and tune structures  Technical foul, an infraction of the guidelines in ball as a rule concerning unsportsmanlike non-contact conduct  Technical practice for an execution, frequently essentially alluded to as a "specialized"  Technical bolster, a scope of administrations furnishing help with innovation items  Vocational instruction, frequently known as "specialized training"  Legal detail, a part of law. 83 1.3.3. FRANCHISE IN THE LIGHT OF LEXICOLOGY AND TECHNIQUE Now after a long discussion upon lexicology and technique, I shall try to explain in detail that in what senses the word: FRANCHISE: is used and meant in the above mentioned and discussed technical words.

The modern man of the current era is enfolded in the arms of western business theories and practices. The dynamic financial system of west is

82 Bentall, Hugh, and Antony De Bono. "A technique for complete replacement of the ascending aorta." Thorax 23, no. 4 (1968): 338-339. 83 Welch, Terry A. "A technique for high-performance data compression." Computer 6, no. 17 (1984): 8-19.

39 ______prevailing and inevitable. There is a series of mutli-dimensional businesses that had been devised and successfully practiced in west and later they captured the global business community. It would not be considered exaggerated statement if we say that the Western economy has transformed the whole universe into a global market. The modern disciplines of knowledge like Commerce, Management and Finance had transmuted the episteme of human knowledge. Islãmic juristic discourse is also under influence of western economical thought and financial paradigm.84

This is vivid that powerful financial hands and markets are playing vital role in establishing or destabilizing the political environment of all over the world. Corporate sector through their financial instruments and tools can manipulate and control the policies of governments silently. Franchising is also a dominant way of business in corporate sector to ensure the presence of oneself in financial markets without physical presence.85

Islãm being a progressive religion imparts its commands about all aspects of human life including business and finance. The certain Islãmic principles for economic life regarding admissibility or inadmissibility of business practices are followed by the Muslims in letter and spirit keeping in view the modern needs and trends. The common misconception about Islãm that its teachings promote the sentimental rejection of this material world and concentrate on spiritual development, needs to be addressed. The real and balanced concept of Islãm must be revealed by disclosing its comprehensive teachings about importance of business and wealth. The Qurãn relates the importance of wealth and capital in many verses like “And gives not unto the foolish your property which ALLAH has made a means of support for you & quote; (4:5), further says: “Then when the prayer is finished, you may disperse through the land, and seek the Bounty of ALLAH (by working or trading etc.)” (62:10)

84 Runia, David. "Etymology as an Allegorical Technique in Philo of Alexandria." (2004). 85 Alejo, Rafael, and Margaret McGinity. "14. TERMINOLOGICAL LOANS AND THE TEACHING/LEARNING OF TECHNICAL VOCABULARY: THE USE OF ECONOMIC ANGLICISMS IN THE BUSINESS CLASSROOM." Applied Languages: Theory and Practice in ESP (1997): 211-228.

40 ______For last two decades, Muslims are extending their best efforts to reshape their lives by initiating Shariah based financial institutions and changing their personal businesses according to Islãmic principles. They are struggling to launch some new Islãmic financial institutions and Sharaih compliant businesses. Similarly, they are enthusiastic to keep them at par with western financial development. In this process, they are trying to not only criticize the west due to hatred and prejudice but accept on logical and religious basis.

Franchising is also one of the modern significant businesses that were not found in such form in primitive epoch and its age is not more than seventy years. Now franchising is enjoying a good business share in the financial market. As the franchising is a new business, hence it needs to be explored and reviewed in perspective of Islãmic juristic theories and practices of business. It is necessary to evaluate the permissibility and impermissibility of prevalent practices of franchise business so that applicability and universality of Islãmic injunctions could be proved.86 The word ‘’Franchise’’ is derived from Anglo-French word- ‘’Franc’’ and its meaning is ‘’FREE’’ and it is used for both places i.e. as a noun and as a (transitive) verb. Actually, it is agreement between the franchisor and the Franchisee. In this kind of business, the owner (franchisor) intend to create a line of ‘’Chain store’’ but avoid to invest money for buildings and structures. The owner of business offers his services to distribute specific goods and products and bears some other liabilities of his chain. The success of Franchisor depends on the success of franchisee. The risk factor decreases for the franchisee due to share of liabilities and resultantly both parties earns reasonable profits than a direct investment.87

Technically, a franchise is the agreement or license between two legally independent parties which gives:

86 Ong, Aihwa. "A multitude of spaces: radical versus moderate Islam." panel on: ‘9/11 and the Risks of Hegemony: Global Emergency or False Alarm (2002). 87 Salar, Menekse, and Orkide Salar. "Determining pros and cons of franchising by using SWOT analysis." Procedia-Social and Behavioral Sciences 122 (2014): 515-519.

41 ______ A person or group of people who owns the right of trademark and trade name is called franchisor and a person or group of people who uses the right of trade name and trademark given by the franchisor is called franchisee.  The franchisee has the right to market a product or service using the operating methods of the franchisor.  The franchisee is bound to pay the franchisor fees for these rights.  The franchisor is bound according to agreement to provide the rights and support to franchisee. Some exact and technical words which are used in this context are many in number but very important commonly used technical words I want to mention below so that every reader and researcher may understand easily meaning of technique, technical words and lexicological context relevant field.88 So, the list of important technical and lexicological words is being displayed in the following.

 INITIAL FEES AND OTHER FEES

Being a franchisor, you should disclose the details in these two main sections any type of fees that you are charging from your franchisees. Ambiguous, hidden and undisclosed fees surely create disputes; therefore, you should be careful and judicious in these matters here.

 ESTIMATED INITIAL INVESTMENT You are responsible and in need of providing your concerned and prospective franchisees, with a due estimate of all their initial money and investment (often providing and showing a low and sometimes high range), providing and including an estimate which will cover all their needed and running working capital. You should be sure that your range should be realistic, because your underestimating top and high end of the range will create a room for a source of your future disputes.

88 Demsetz, Rebecca S., Marc R. Saidenberg, and Philip E. Strahan. "Banks with something to lose: The disciplinary role of franchise value." (1996).

42 ______

 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES Holding the position of a franchisor, you should sell your goods also services to all your franchisees and customers, as long as you should disclose this point that you (or any affiliated entity) is making money on all sales. You should also need to expose the amount of all the revenue you are getting and deriving from any demanded purchases (includes rebates from the unaffiliated vendors). Therefore, again, you are supposed to adopt the rule here is to be confidant and sure that you fully explain and disclose all forms of the revenue that you generate by the process selling of franchisees.89

 TERRITORY According to franchise act you cannot be obligated to provide any of your franchisees some territory that is called protected territory or exclusive, but if there is need to do and you choose some place, then you should disclose it clearly in the documents. You should need to carefully think over a number of all potential business disputes and conflicts and also reservations of rights in all such sections and practically you should the territory for the grant of it. 90

 FINANCIAL PERFORMANCE REPRESENTATIONS Being a franchisor, you not compelled to provide the detailed information to your franchisees about sales, or earnings, and other expenses (except those information’s that were outlined in above documents). But if you feel need to choose to do so, and then you should provide it in the section of your FDD.

But when you are welcome to share and discuss some information on those elements with any of your franchisees after signing the franchise agreement, and prior to the sale of a franchise, you have the right only to discuss that information that you've already included in your Financial Performance

89 Spencer, Elizabeth C. "Balance of power, certainty and discretion in the franchise relationship: An analysis of contractual terms." Law papers (2008): 250. 90 Carney, Mick, and Eric Gedajlovic. "Vertical integration in franchise systems: Agency theory and resource explanations." Strategic Management Journal12, no. 8 (1991): 607- 629.

43 ______Representation (FPR), also along with suitable, appropriate and reasonable supporting data. These FPRs should not be in the form of some income statements and should not be prepared in accordance with some GAAP, so there is considered a good deal leniency of flexibility about the option of choosing and then to disclose. But on the other hand, the bottom line is, suppose if you opine to plan to provide information which can help a concerned franchisee with this intention of deriving an income statement, then it the need that it should be included in the list of Item 19.91

 OUTLETS AND FRANCHISEE INFORMATION You are obligated to provide a table which will summarize, among all other things, such as the number of franchises which were opened, similarly the number of these type terminations, the number of other franchises which were closed, and also the number those were transferred over the previous three years. You should also provide some important information about the contact for all your franchisees in your proper system along with the particular contact information of those franchisees who left the system (due to any reason) in the previous financial year.92

 FINANCIAL STATEMENTS You shall feel need to provide audited financial statements of last three years (such as balance sheets, the statement of operations, the owner’s equity, and also cash flows) that is considered a part of your FDD. Since, most of the franchisors create a new some business entity at the time they begin franchising, the FTC has formed and developed a “phase-in” law and rule which allows a startup the franchisor to provide and manage an unaudited balance sheet during the first year of the franchising and also an audited balance sheet during in the second year. Note: this rule has not been adopted in some states. Moreover, it stated that if the franchisor is considered to be a subsidiary of any existing entity (or has obligations that

91 Wells, Gerald C., and Dennis E. Wieczorek. "A road map to the new FTC franchise rule." Franchise LJ 27 (2007): 105. 92 Current, John R., and James E. Storbeck. "A multiobjective approach to design franchise outlet networks." Journal of the Operational Research Society 45, no. 1 (1994): 71-81.

44 ______are guaranteed by another such entity), you may need necessarily to provide an audited financial statements of this type existing entity. You should be sure to get legal consultation and advice on this issue before establishing your franchising business.93

Figure 1.6

 CONTRACTS You are also in need to provide all of your prospects of your business with any of the contracts they'll feel need to sign. Therefore, definitely the agreement of your franchise, the agreement of your finance should be

93 White, Gerald L., Ashwinpaul C. Sondh, and Dov Fried. "Analysis of Financial Statement." Analysis (2005).

45 ______included in this section. In addition to this, the product of supply agreements, personal promise and guarantees, agreement of software licensing, and such many other due contracts that may be specific and particular to your situation.94

Figure 1.7

 RECEIPTS Actually, the final section is a proof and receipt page for your prospect to get the documents signed. So, you can sign the document when they received the folder of FDD. In summary, your FDD can review the business decisions that are contained in the form of your contractual relationship with all your

94 Rubin, Paul H. "The Theory of the Firm and the Structure of the Franchise Contract." The Journal of law and economics 21, no. 1 (1978): 223-233.

46 ______franchisees and provide them with all additional information concerning you and also the franchise that will help them in making their all decision. There are thousands of issues and disputes literally, that should have addressed and solved at every cost. And the decisions of such kinds behind those problems and issues shall ultimately dictate and hint the franchisor’s success. The FDD, and the contract of other underlying franchise, are complicated legal documents, therefore, all the documents of these kinds should only be managed and prepared by an experienced and expert franchise attorney.95

1.4. HISTORICAL STUDY OF FRANCHISE BUSINESS/ THEORETICAL SURVEY OF FRANCHISE BUSINESS In this section, I shall try my best to give brief history of franchise business in different stages so that every reader and every scholar and every researcher may easily touch the bottom of understanding.

It is admitted fact that Franchise Business has been the greatest business in past time. In this business, all the people were allowed to take and adopt their own business in this field so we shall discuss the history of Franchise Business that is very interesting informative and unique history. The different periods of this history are the following:

1.4.1.THE MIDDLE AGES First of all, this business appeared as a model in this period, but this time was not a golden time for this business because the people were not educated. There were many kinds of famines appeared in Europe and The Black Death Plague was also happened in this age. So, people could not pay attention to this side. In spite of this one positive thing was found that people started to take interest on daily basis charges in Franchising. Another positive thing was seen that the local governments granted the rights to the churches to get taxes. It means that the individuals and persons were given rights to run markets and adopt this Business in the related conditions. It is another useful thing that in the history of this field the owners of this business

95 This, M. C. "LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD." (1987).

47 ______first time started to pay a royalty to the lords in exchange for protection to run way their Business and markets also. It was very useful thing that the European Common Law came into the being.96 1.4.2. THE COLANIAL PERIOD

This period is very separate, attractive and conducive for the people because the people who were the franchisors they were called ‘’Franchise Kings’’. In this period, the franchise kings gave the rights to the people, individual and person to establish their shops, to hold fairs and to run any type of business relating to franchise business school and regulation. The European Monarchs who thoughts themselves very near to the kings were given Franchises rights with this power to give the right to the citizens and also establishing colonies for this purpose. Once a colony came into being the founder of the colony was responsible for getting taxes and royalties from all the people running this Business for the kings or crown.

1.4.3. IN 1840s

During this period, there was a man namely A BEER BREWER. He was lived in Germany. He granted a gave rights to some people and several local taverns with this power to sell the BEER. In fact, the owners of taverns were allowed only to use the trade name and that name was SPATEN. So, the important and interesting thing about that the owners had to pay for using the trade name and brand name. By the way it is very interesting that the SPATEN trade name is being used till now-a-days also.97

1.4.4. IN 1880s The very important figure in the modern Franchise Business as a model was ISAAC MERIT. He was the founder of I.M Singer and company. He promoted his sewing machine in the people as a Franchise Business. Because every people and every person were to stich their clothes by hands. When they saw this opportunity of singer machine they were very happy to adopt this

96 Elango, Balasubramanian, and Vance H. Fried. "Franchising research: A literature review and synthesis." Journal of Small Business Management 35, no. 3 (1997): 68. 97 Doherty, Anne Marie, and Nicholas Alexander. "Relationship development in international retail franchising: Case study evidence from the UK fashion sector." European journal of marketing 38, no. 9/10 (2004): 1215-1235.

48 ______business as a Franchisee. This singer machine emerged on the seen in the mid-1800, s. 98 1.4.5. THE LICENSING ARRANGEMENTS To promote this Business the company took many important steps for example the company and his partners were asked to find the people to buy their sewing machines to sell in different areas where they easily go and come only paying a licensing fee (up-front fee) for availing the right to sell the machines. In this way, this Business promoted into the long distant areas of the countries and the world.99 1.4.6. THE TURN OF THE CENTURY When the 19 centuries were going to end a new change in this business appeared. The American created and manufactured automobiles of different types. In 1896 a very important person namely WILLIAM METZGER was the first person who opened an independent automobile dealership. After opening this branch, he took many important steps to promote his Business. He gave rights to the people interested in this Business to use the trade name brand name and company name only for paying the small charges for buying and selling the automobiles. After this person H.O. KOHLLER was second person in this Business field who started to sell Winton automobile. After this HENRY FORD and other Business men came on the scene and they started to give rights to the people to buy and sell the automobile only for paying fee for this purpose.100 After this so many kinds of the Business of Franchise type came into this field for example food Franchise, Restaurants, Hotels etc. 1.4.7. IN 1960s RAYMOND ALBERT KROC is very prominent figure and hero of this period. And McDonalds Restaurants and other Business of such type appeared. KROC was of such type of person who started multi types of business in this

98 Kedia, Ben L., David J. Ackerman, Donna E. Bush, and Robert T. Justice. "Study note: Determinants of internationalization of franchise operations by US franchisors." International Marketing Review 11, no. 4 (1994): 56-68. 99 Doherty, Anne Marie, and Nicholas Alexander. "Relationship development in international retail franchising: Case study evidence from the UK fashion sector." European journal of marketing 38, no. 9/10 (2004): 1215-1235. 100 Lafontaine, Francine, and Patrick J. Kaufmann. "The evolution of ownersip patterns in franchise systems." Journal of Retailing 70, no. 2 (1994): 97-113.

49 ______field and extend also his business into the shape milk shake machine, food industry, mixing machines etc. McDonald’s brothers were the exclusive agent so also, they started to sell and separate the branches of their business into the different countries and areas of the world. According to an estimate there were five hundred restaurants in running position till 1963 and their rough estimate that 34 thousand McDonald’s restaurants are working now and 80% were working on Franchise line.101 1.4.8. THREE MODERN FRANCHISE LEADERS a) ISSAC SINGER AND HIS PARTNERS They promoted their business in the field sewing singer machine to this level that the people of today are enjoying from this Business now-a-days also. b) HENRY FORD He also promoted his business in the field of automobiles like singer machine and people are also doing this business now-a-days in the rules and regulations made by this man. c) RAY KRAC A McDonald Franchise just like other types of McDonald branches were opened in the different parts of the world and people are enjoying this business and its benefits. One-time KROC said, “The two most important requirements for major are:1, being in right place at the right time, and second, doing something about it.” So, keeping in view the above said statement of KROC, HENRY FORD, ISAAC SINGER and RAY KROC were such type of people who were in the right place and were at the time and did much more related to this field. 102

101 Carney, Mick, and Eric Gedajlovic. "Vertical integration in franchise systems: Agency theory and resource explanations." Strategic Management Journal12, no. 8 (1991): 607- 629. 102 Singer, Isaac Bashevis, and Richard Burgin. Conversations with Isaac Bashevis Singer. Doubleday Books, 1985.

50 ______1.5. CLASSIFICATION AND CATEGORAZTION OF FRANCHISE BUSINESS 1.5.1. TYPES OF FRANCHISES BASED ON OWNERSHIP

Figure1.8

There are so varieties and kinds of Franchise business in the market some people are doing this business of their own liking and disliking. So, it is a way of success in any kind of business that when a man does that business what he likes he will successful in that business. So, keeping in view this trend we are going to distribute the franchise business into different types and categories. We are doing so, so that every person having interest in this business. May no the detail about the pros and cons and advantages and disadvantages of all the types of franchise business. So, there are two ways to distribute this business into different categories in the market, .one way is this according to which we distribute this business into different types that we consider that is called franchise is based on the operational structure of the business. The second in which the franchise business is based on the type of ownership.

1.5.2. FRANCHISES BASED ON OPERATIONAL STRUCTURE We can distribute and categories this business according to this way mentioned above into four main types and categories that are following a) MANUFACTURER FRANCHISE It is very important type of franchise in the market. It is favorable for the franchisee because in this type he has the full power and right to manufacture and prepare the products of the owner or franchisor. In this way, he gets the rights sometime to distribute the products according to his wishes where he wants. Sometime he can also sell the products according to his

51 ______desire. So, in this way it is very suitable and pleasing way for the franchisee to do this business of his own free will.103 b) PRODUCT FRANCHISE104 In this way franchisee has the right to sell and distribute the products just like in manufacturer franchise type. But there is a great difference between this and that and that is this in manufacturer franchise business he has rights to sell and distribute of all the products. But in this type, he has the rights to sell and distribute the products of particular products. c) BUSINESS FORMAT FRANCHISE

Figure 1.9

It is very common and very famous type of business. Because the franchisee not only manufacture, distributes and sell the products but also in this type we can adopt all the operational model and system of structure that have been developed and established to promote and generate the profits or

103 Frazier, Gary L., and John O. Summers. "Perceptions of interfirm power and its use within a franchise channel of distribution." Journal of Marketing Research (1986): 169-176. 104 Yalcinkaya, Goksel, and Tevfik Aktekin. "Brand Extension Effects and Core Attributes of Experience Product Franchises: A Bayesian Approach." Journal of Product Innovation Management 32, no. 5 (2015): 731-746.

52 ______franchisor. It is very clear now that he can to this type of business just like the franchisor (owner).105 d) BUSINESS OPPORTUNITY VENTURES Such type of franchise business in which new ideas and new ways will be introduced to open new markets, new plazas and new commercial zone. Actually, this is a technique and technology into such type of business to ensure the investors to succeed their business, they attract such type of people how wants and able to invest huge money on risky business plan. It is also considered to create new ventures and opportunity for all such type of people who have the capacity, ability and capability to invest the large money on risky adventures and also hopeful about huge profit. Such type of peoples is as follows  Government  Semi government  Firm  Bank  Cooperative societies  Lenders  Creditors  Inter price  Entrepreneurs etc.106 1.5.3. TYPES OF FRANCHISES BASED ON OWNERSHIP

We can distribute and classify the franchise business into five types on the basis of franchise ownership that are follows a) SINGLE UNIT In this type of business, you will be owner of single outlet of franchise. In addition to this you will work and run this business only at a particular location. This type is very common, ideal, profitable and suitable for the

105 Sen, Kabir C. "The use of initial fees and royalties in business‐format franchising." Managerial and decision Economics 14, no. 2 (1993): 175-190. 106 Tauber, Edward M. "Brand franchise extension: new product benefits from existing brand names." Business Horizons 24, no. 2 (1981): 36-41.

53 ______people who just start or begin their business. The advantage of this franchise is very much. The cost of starting up are low. The important thing is this that you can manage this business personally as a single person.107 b) MULTI UNIT FRANCHISES In this type, you can start your franchise in different place or locations in a very short time. In this business, the startup cost is very much and advantage are risky. You have to cover all the market of different places where you have opened your branches of this business. In spite of this you can also increase your chance of profit. However, it is very necessary for you or for a beginner to monitor the activity and the performance of their mangers. It is very important thing for you to take keen interest to look and investigate the activities of each manager of each unit individually and personally.108 c) EXISTING FRANCHISES In this type on unit you are not doing efforts to develop your business but you are investing in the business that is already established and developed by someone else than you. And this business previously is prominent and well known in the market on the name of others. Such type of business you can easily estimate your earnings and also learns the way that how can plan your business and how can you operate your business according the way in which you are investing your money.109 d) AEREA DEVELOP FANCIHISES Actually, this type is the advanced format and type of the multi-unit franchise. In this type, it is very necessary for you to open a number of branches of this business. That is also very important branches should be operational in different regions and areas. It is also very advisable that all the branches should be opened in a specific period and time.110

107 Hussain, Dildar, Lindia Moritz, and Josef Windsperger. "The choice between single-unit and multi-unit franchising: combining agency and transaction cost perspectives." Journal of Applied Business Research 28, no. 5 (2012): 769. 108 Kaufmann, Patrick J., and Rajiv P. Dant. "Multi-unit franchising: Growth and management issues." Journal of Business Venturing 11, no. 5 (1996): 343-358. 109 Elango, Balasubramanian, and Vance H. Fried. "Franchising research: A literature review and synthesis." Journal of Small Business Management 35, no. 3 (1997): 68. 110 Baade, Robert A., and Richard F. Dye. "The impact of stadium and professional sports on metropolitan area development." Growth and change21, no. 2 (1990): 1-14.

54 ______e) MASTER FRANCHISE In this type of business, you are not called an owner but you are acting as a middle man; broker; intermediary between the owner of franchisor and all the number of persons of individual that is called franchisees. It is a difference between this type and all the others that you have pay a large and huge amount of money only to the franchisor and you have the power given by the franchisor to collect and receive the fee from all the persons and individuals (franchisees). 111 1.6. SOME KNOWLEDGEABLE TYPES OF FRANCHISE

There are some other critical and conspicuous sorts of franchise business which are running and winning in this field effectively. They are exceptionally productive and invaluable to all franchisors and in addition to franchisees. Those diverse classes of establishment (franchise) sorts are in the accompanying; a) Retail Franchise b) Management Franchise c) Single Operator Manual, d) Single Operator Executive e) Investment a) RETAIL FRANCHISE

The proprietor (franchisor of the retail establishment will possess the retail premises, offering of items or the administrations amid retail hours particularly for 'stroll in' retail. The business is considered absolutely subordinate upon the premises and the turnover is accomplished from the stroll in shoppers. The franchisee as a rule will:

 Need is felt about High Street of premises in Australia or in some other nation.  Produce the greatest lion's share of their own turnover from the stroll in clients.

111 Kaufmann, Patrick J., and Sang Hyeon Kim. "Master franchising and system growth rates." Journal of Marketing Channels 4, no. 1-2 (1995): 49-64.

55 ______ Be pitching the item or the support of the end-client.  Work, handle and deal with his establishment business amid the retail hours that may incorporate the ends of the week and furthermore long days.  Need to oversee and utilize the staff (understanding and practice in a few issues is basic).  Be managing and taking care of with the normal open. b) MANAGEMENT FRANCHISE

The proprietor of the administration establishment will use their experience for developing of the establishment business and furthermore control staff that will do the errands of all the activity. It will request and require premises that are more probable (particularly) to be an office than in an Australian High Street outlet.

The lion's share of all the turnover here is especially produced from all business-to-business exercises and instead of from retail. The franchisee in this field as a rule will:

 Need premises that may not really is found on the High Street.  Be offering the item or the administration.  Work, handle and deal with the business exercises amid available time.  Feel need to utilize and furthermore deal with the gifted staff (with involvement in a few issues and cases is basic).  Need to bargain a decent measure of the organization particularly in giving the item or the administration.  Deal principally with all organizations and few rates of the time with all the overall population.  Feel the need of showcasing the business by and by. c) SINGLE OPERATOR FRANCHISE/MANUAL OR JOB FRANCHISE

(Otherwise called JOB FRANCHISE), the establishment proprietor should work at the establishment that which for the most part receives the type of a business or exchange providing, or offering and furthermore conveying the

56 ______items or the administration. It might be viewed as versatile, or locally situated or requesting and requiring little office with little premises. The franchisee acknowledged, when all is said in done will:

 Feel the need of taking in the exchange that might offer the item or the administration.  Shall take a shot at his own at first, yet may oversee and utilize staff for the developing of business.  Feel the need of showcasing the establishment locally for the age of business.  Deal with the regular open and in addition organizations.  Have a lot of mobiles and phone for the association of dealings in his everyday issues of the business.  In a large portion of the cases be versatile, generally frequently van- based.  Do printed material at his home or a have little modern place with little premises.  In a few cases, feel the need of wearing of a uniform.  Have adaptable and variable business hours. d) SINGLE OPERATOR FRANCHISE/EXECUTIVE OR WHITE COLLAR` JOB FRANCHISE

In this classification, it considered more often than not a business of providing an administration. It might be called portable, or locally established or requesting a little office with little premises. The sort and state of work is perceived as an official. The franchisee in this business as a rule will:

 Feel the need of taking in the business that is normally an administration.  Will do chip away at his own particular at first, however may oversee utilize staff for the developing of business.  Feel the need of advertising the establishment locally for age of business.  Deal fundamentally with all organizations, however in some cases meet with the normal open.

57 ______ Have a lot of portable or phone for dealings of the everyday present and running business.  In a few cases, feel to be portable.  Work at home or deal with a little office with little premises.  Work amid the available time. e) INVESTMENT FRANCHISE

The franchisee contributes a substantial and huge measure of his cash in some establishment simply like as a lodging. The franchisee in such case might be expressly doing work avoiding himself as much as possible from the matter of establishment and will settle an administration group for working it. The franchisee around here, by and large will:

 Invest a huge and generous whole.  Not work straightforwardly at his establishment.  Install an expert and administration group for maintaining the business.  Have encounter and furthermore mastery in dealing with a substantial and accommodating proficient group 1.7. THE ADVANTAGES AND DISADVANTAGES OF THE MECHANISM OF FRANCHISE BUSINESS

In this section, the technical discussion will be divided into two sub-sections;

1.7.1. A general overview on the mechanism of franchise business 1.7.2. The advantages and disadvantages of franchise business 1.7.1. A general overview on the mechanism of a Franchise Business In this sub-section, a comprehensive and informative has been furnished. For example, if you wish to start any business, maybe you have listened the term “franchising” bandied here around, but you are really sure about what it means and how it operates. Don’t you worry in this section, it will be defined a franchise business in detail for you, with explaining the process that how franchises work and also giving some examples of some famous franchises about that everyone probably already is familiar with.

58 ______Then this section will take you through the method of starting and then running a franchise. If you desire more detail about this business at any stage, you can be referred to go through to my theses in detail. But some pillars are being given in the following for the quick smattering and introduction about this business so that someone can get lucid and clear basic information about a franchise, its works and its process. a) APROPOS A FRANCHISE BUSINESS

According to the Oxford English Dictionary, the basic definition of a franchise is:

An authorization granted to an individual or group to trade in a particular area for a stated period, usually in return for royalties, a share of the profits, etc.`` 112

Let’s examine and explore about that means with the help of an example. In fact, two famous examples of fast-food and business are being given in the following for the prehension of its works, its process, method, and operation in very different ways: Examples;

2. McDonald’s 3. Chpotle Mexican Grill.

Why these two examples have been selected?

Because;

 McDonald’s is considered as a franchise business,  Chipotle is not considered as a franchise business. But the two examples mentioned above will enable you apprehend the difference and to touch the bottom of its way of working, processing, and operating.

112Christina, Fulop, and FORWARD JIM. "Insights into franchising: a review of empirical and theoretical perspectives." Service Industries Journal 17, no. 4 (1997): 603-625.

59 ______b) CHIPOTLE

The start is taken with the example of non-franchise. Chipotle has its operation more than two thousand restaurants worldwide, and it owns all those restaurants in public, itself. The company and the owner bear all the cost of its opening and also its running of each store, and keeps clearly all the profits with itself. So, the people those who run those stores and the people who prepare and manage the burritos are all called Chipotle employees.113 c) MCDONALD’S

The McDonald’s, is taken on the other hand, it only directly owns a list of thirty-six thousand outlets in the world. A number of them are called franchises. The basic difference is this. The McDonald’s provides those people the option and right to use its entire famous brand, its logo, its menu, etc. Therefore, so they can easily attract the more customers as compare to that position that if they opened up a fresh and new hamburger in restaurant on their own name. They are also provided the right to use a known and proven business sample and model rather than they trying it to invent on their own.

As a return for all those positions, all the people who run their restaurant, they pay fees to McDonald’s, and usually this calculation is counted as a percentage of their sales.

This difference is considered the basic tradeoff on the platform of a franchising relationship. The franchisor (is called in this case the McDonald’s) gives the rights to use to other people (are called the franchisees) to take advantage of all its brand, all its business model,

113 Ragas, Matthew W., and Marilyn S. Roberts. "Communicating corporate social responsibility and brand sincerity: A case study of Chipotle Mexican Grill's ‘Food with Integrity’program." International Journal of Strategic Communication 3, no. 4 (2009): 264- 280.

60 ______and also all its marketing clout, and it receives a percentage of all its sales in return.114

The basic difference has been explained clearly. Now anyone who wants to start a franchise business, he will be able to get the prehension of the difference between a franchise and a non-franchise business brand, logo, trade mark, trade name and also model. d) EXAMPLES OF FRANCHISES

Even if a person is not conversant with the franchise business model before this reading, he will have almost certain smattering of having dealings with some important franchises already in his day-to-day routine of life.

Have a look of Franchise Direct list of ranking of the Top 100 Universal and Global Franchises, and someone will see a plenty of household brands and names. So, McDonald’s is accepted on there, as we have examined above and seen also, but on the other hand, so are Subway, KFC, Burger King, Pizza Hut, Dunkin’ Donuts, and many more. Every time when someone go to one of all those restaurants, he is actually visiting and examining an individual franchise below the larger logo and brand umbrella.

But although most of the largest and well-known franchises are considered in the fast food industry, and you shall also find many franchises in most different fields.

For example, there is a Hilton Hotels, or the Carrefour supermarket chain, or Century 21 real-estate agents, or the car rental agency Hertz. Similarly, the list continues on; such as courier companies, gyms, office-supply firms, tax accountants, auto-repair firms, and many more.

In the U.S., the franchise businesses are employing more than 9 million persons and they also have a gross domestic product (GDP) out of $552

114 Card, David, and Alan B. Krueger. Minimum wages and employment: A case study of the fast food industry in New Jersey and Pennsylvania. No. w4509. National Bureau of Economic Research, 1993.

61 ______billion, 3% out of the U.S. economy considering as a whole, estimated according to the International Franchise Association.115

So now someone knows better that what franchises are and also have seen some famous examples of well-known famous franchises. e) HOW DOES A FRANCHISE WORK?

Suppose you want to start or run a franchise. What would be the process of work from your view-point being as a franchisee?

First of all, you should find an opportunity. Then you can easily start your franchise business with some useful helpful web resources just like Entrepreneur Franchise 500 list or similarly Franchise Directs resources and searchable directory of the franchises.

You should keep in your mind that there are so many different kinds and types of franchises out there are available, and the kind that you are choosing is depending on that which you are looking for. The basic and initial investment demanded from you would be anywhere according to from tens of thousands to millions of dollars. Some franchises would offer different kinds and levels of risk (similarly different levels of the potential reward and so on).

Some franchisors would offer lots of benefits and support to franchisees, while some others offer less than this. Some of those are very structured, ordering with lots of laws and rules to follow, while others would allow and provide more independence. Some may demand you to work to continue longer hours as than others. Some may provide locations in your area, while others may you to move.

So, all of such things would affect you that which franchise business opportunity is right in your favor, so it’s very important to you to set your

115 Brickley, James A., and Frederick H. Dark. "The choice of organizational form the case of franchising." Journal of financial economics 18, no. 2 (1987): 401-420.

62 ______criteria up front and should be clear about what kind of franchise you are looking for.

After you have identification of some possibilities, then you should evaluate each one. Make sure that you have understood the business model, and then you should ask some questions to search out how much you would expect to earn, or how much of training and also marketing support is provided and provided, and similarly so on. You should also get satisfaction and make sure that you have read the detailed prospectus, well-known in the U.S. as a (FDD) Franchise Disclosure Document.116 f) A SUCCESSFUL FRANCHISE BUSINESS

When you have seen a running a franchise, it could be a be a great and to the point way to go into business while getting advantage of an existing firm’s trade name and brand recognition.

But it does not mean that you should think to run out and to invest in the next business and franchise opportunity that you come across. You should know that there are some good franchises and also bad ones, the good locations and also bad ones. You will need to make it work, and do a lot of research and then follow the right process.

In this section, some of the key points will covered of running and promoting a successful franchise. Some practicable rooms have been made for the new comers. Depth has been deciphered for the beginners. All the keys of success towards franchise in depth have been dissected for the researchers. All the facts and figures have been collected in a capsule apropos of a master key. So, every reader and learner should take keen interest in adopting a franchise business according to the situation, location, and reputation of the brand and trade name especially avoiding of a heavy and dangerous loss and tranquility also.

116 Antia, Kersi D., Xu Zheng, and Gary L. Frazier. "Conflict management and outcomes in franchise relationships: the role of regulation." Journal of Marketing Research 50, no. 5 (2013): 577-589.

63 ______Details have been explained in this chapter, so it’s very important to make the research on early stage and then decide and choose the right franchise for you. Then if you have done all the steps then you should have started the running business. You should commit this key to memory firmly, although a lot of help and support is provided and promoted for you, but you should understand that it’s still your business, so it is necessary for you to feel need to make a good plan and well strategize for success thinking it just as you are starting your own franchise business from scratch.117

Most of the important steps have been identified in this chapter about the starting of a new franchise. So, you would apply to franchises. You will not feel need to come up with any idea or to create a name and any brand, because all these things been done for you. But you should take some other important steps, such as identifying and also understanding your object and target market, creating a good business plan and also a financial model, way of hiring employees, and also setting up your accounts.118

There is no doubt that some franchisors include some marketing support in many franchise agreements, but it does not mean you should not need to work anything by yourself. If you are running a McDonald’s franchise, for instance, you would benefit from every and all ads which the company runs on TV or elsewhere, and also from the general trade and brand recognition. But you should keep in mind that those ads often will not tell the people about the particular restaurant of you. So, you should be careful about such techniques and some terms that may cover these deficiency at the nick of time for the contests and promotions out than a on a local radio.

When you are making your good plans, of course, you will feel need to consult about your franchising agreement at every time to make sure that you are not violating some or any of the terms. But, with the passage of time,

117 Falbe, Cecilia M., and Dianne HB Welsh. "NAFTA and franchising: A comparison of franchisor perceptions of characteristics associated with franchisee success and failure in Canada, Mexico, and the United States." Journal of Business Venturing 13, no. 2 (1998): 151-171. 118 Bosereewong, Vipaporn. "Identification of environmental factors that influence the choice of franchising methods of US restaurant companies in Pan Pacific region." PhD diss., Virginia Tech, 1994.

64 ______as long as you will stay within the franchisor’s guidance and guidelines, you will do everything for getting the word out and also attract a loyal customer base. You should view the support that you get from the franchisor as apropos to a bonus, and not as the be-all and end-all.119

You should also remember and keep in mind that, as Theodore Roosevelt once said,

“The most important single ingredient in the formula of success knows how to get along with people.”

Getting along with all people doesn’t hint at going along with all things that you don’t want to. If you feel some concerns, you must definitely raise them without any hesitation to the franchisor. But it is very important to maintain a good relationship with them.

With the sense of an independent business, you can stay against the waves in business for a time as long as you could want, and as long as it is profitable for you. But the duration of franchise agreement lasts for a fixed term, and there is an opinion that there is no guarantee of its renewal. And if you break or violate any one of the conditions, it would terminate your agreement early. So, no doubts, doing a good job, or following the rules and also paying the royalties are most important, but maintaining a good relationship would certainly help.

And it is also a notable and positive note, that keeping on good terms with owners or franchisor would lead to more opportunities. For instance, your store would be chosen for the featuring in a special promotion or for an advertising campaign. And if there are new franchises are available, you would be given the chance first to buy one.

It is also very important point, of course, to enhance relationships with the customers and also with employees. No doubt, customers are the lifeblood of someone’s business, and employees are recognized responsible, not only

119 Sanghavi, Nitin. "Retail franchising as a growth strategy for the 1990s." International Journal of Retail & Distribution Management 19, no. 2 (1991).

65 ______for doing work efficiently but for doing deal with customers and being the original face of the franchise business.120

After a long discussion, apprehension about the process and working of a franchise business has been developed. The mechanism of its system has been analyzed. The process of working has been simplified. The denotative and connotative meanings of the term have also been explained. The literal and figurative meanings technical words have been elucidated for the readers and researchers also. All the ambiguities and vagueness’s have been so simplified that every common man, who has some interest about this business, can easily understand the connotative meaning that is very helpful in operating the business according to the real conception and perception of the technical terms and economical phrases.

In this chapter, a salubrious and knowledgeable discussion has been furnished about the basic information of franchise business that, what a franchise business is and how it works. We’ve deeply looked at some examples of famous franchises, and we’ve also seen how a proper franchise business such as McDonald’s and some others of this kind business can differ from such a business that is running in the market predominantly as a franchise business, but, actually that is a non-franchise business such as Chipotle.

You also now have an understanding of some of the research you need to do in order to find and evaluate franchise opportunities, and you’ve got some tips on running a successful franchise.

If that’s all you were looking for, then I hope it’s met your expectations. If you’re still looking for more details, then your next step should be to work through the comprehensive series on buying and selling a successful franchise.121

121 Goodwin, Bernard. "Franchising in the Economy: The Franchise Agreement as a Security Under Securities Acts, Including 10b-5 Considerations." Bus. Law. 24 (1968): 1311.

66 ______Now we have discussed and classified all the types of franchise business in above said headings. Now to the best of my knowledge, it depends upon the bent of mind and trend of the beginners to which type of the business he adopts and starts. But, according to my opinion, he should not start any type of business hurriedly. First of all, he must understand the detail of the business and then pros and cons of each business and after this, he should also discuss the advantages and disadvantages of the branch of the business he wants to adopt with the perfect and expert lawyer who is expert and perfect in the business, then he should start his business with full confidence.

1.7.2 ADVANTAGES AND DISADVANTAGES OF FRANCHISING a) ADVANTAGES OF FRANCHISING

Toward the finish of this section, it looks reasonable to specify some significant and proficient points of interest and weaknesses of Franchise Business, and those are following:  The peril and danger of your business disappointment is limited and lessened by diversifying. The premise of your business is on an advanced and demonstrated thought. You can check the speed of your business with a correlation with others and the dedication with others.  The piece of the overall industry will have just been set up pertinent the Products and appropriate administrations. Along these lines, you will feel no requirement for the market testing.  You are approved to utilize a perceived and eminence mark name and prevalent exchange check. Accordingly, you can profit yourself from any method for publicizing or due advancement by the coordinator of the establishment – called the 'franchisor'.  The franchisor gives you full help. You are designated, for the most part a total and full bundle that is including the full preparing, appropriate help in setting up the establishment business. A manual is given you that advises you about a few strategies that valuable maintaining this business and furthermore continuous guidance

67 ______ There is need of related knowledge on the grounds that the franchisor deals with your preparation. He will guarantee you to build up your abilities which are necessary required to improve, work and deal with the establishment business.  An establishment business will empower you and your independent company to keep pace with the other huge organizations in the market. In addition, you will have the capacity to set up your autonomous business in the market as private venture and furthermore huge business and keep up the norms of your business to contend alternate systems of different franchisees, with the assistance and pool of help of the franchisor.  You are typically with everything taken into account in practicing the selective rights in your own particular region. Since the franchisor won't offer any sort different establishments in your same region in which you are working.  Financing procedure to the business most likely might be simpler. Since, at times, the Banks wind up plainly prepared to loan you the cash for purchasing such an establishment, to the point that has as of now a decent notoriety and astounding name.  In this business, you can profit yourself with the assistance of imparting and furthermore offering your plans to different franchisees. On the off chance that you fell need, you can get some help of suppositions and musings of a similar system.  Your connections will be set up on solid premise with every single popular specialist and providers. b) DISADVANTAGES OF FRANCHISING  Costs gauge and different costs might be higher and surpass than your desires. Now and again, your underlying expenses of acquiring the establishment additionally is expanded. You will undoubtedly pay the expense for the continuation of your administration benefit. You are will undoubtedly concur for the purchasing of items from your franchisor.  There are a few confinements on you to follow up on the terms and states of establishment assention. You can't change any of these, regardless of whether, you feel it reasonable as per your market and rivalry.

68 ______ Sometimes, you will find that the observing of your continuous franchisor will be nosy  There are a few shots that your franchisor is bankrupt and because of this inadequacy, you are to confront misfortunes.  Some different franchisees can give such brand and test in the market that have awful notoriety and that are coming about misfortune for you.  You can't pitch your business or establishment to any one freely.  You will undoubtedly get the endorsement from your franchisor first then you can pitch your establishment to someone else.  Usually, there are on the whole benefits are shared by the franchisor as the proportion of a level of all deals in every one of the things.  The nature of establishment business is regularly unyielding.  You can't maintain your business in the market unreservedly and freely, for the thriving and developing of your business. 1.8. GLIMPSES (ADSPECTUS) OF THE CHAPTER  Explicated the introduction to apropos the topic of the thesis, the literature review, justification, research objectives, research questions and research methodology etc.  Demystified the etymology of “business” encompassing its sense in the terminology perspective and its history.  Elaborated the denotative and connotative meaning of franchise business in lexicological and technical perspective.  Postulated the theoretical and speculated history of franchise business.  Deciphered the classifications and categorization of franchise business embarrassing the franchises based upon operational structure and the franchises based on ownership.  Decoded the purport of its types i.e. business format franchise, product franchise, manufacturing franchise and business opportunity ventures franchise.  Exposed the general overview of its mechanism.  Explained some of its considerable advantages and disadvantages.

69 ______

CHAPTER 2

LEGAL FORMATION OF FRANCHISE BUSINESS IN PAKISTAN & ITS PROCEDURE

70 ______

CHAPTER #2

2.1. Introduction 2.2. Concept of law-a historical survey 2.2.1. Law meaning and definition 2.2.2. Historical background of law 2.2.3. Legal system of law 2.2.4. Legal subjects of law 2.3. Franchise business law in Pakistan & its implications: a critical study 2.3.1. Franchising law in Pakistan (gernal) 2.3.2. Franchise document disclosure (FDD)/franchise business agreement 2.3.3. Terms and conditions 2.3.4. Deduction 2.3.5. Legal issues and implications in franchising in Pakistan_ critical study 2.3.6. Is franchise an agency or a license? 2.3.7. A critical appraisal 2.4. Franchising laws procedure in Pakistan, Malaysia and Dubai-a descriptive study 2.4.1. Franchising law procedure in Pakistan 2.4.2. Franchising laws in Malaysia 2.4.3. franchise law in Dubai 2.5. Glimpses (adspectus) of the chapter

71 ______2.1. INTRODUCTION In this chapter, first of all a theoretical approachs will be elaborated. A detailed summary of nonfictional literature and with historical glimpses and shadows would be attached. Knowledgeable and considerable information is to be furnished. After presenting a theoretical overview, practical and empirical stages have been discussed in detail. Different aspects of this field could be highlighted. A comprehensive statement of practical life in connection with franchise history, facts and theories are to be elucidated. All this discussion will be entertained in the domain and boundaries of Pakistan. In second section of this chapter of franchising laws in Pakistan will be considered and got across. Some problems and issues would be deciphered. Important and urgent implications and complications in franchising laws in Pakistan have been enumerated. Some solutions of these problems have been suggested. A critical report about these situations will be presented and attached. In third section, a deep, comparative and descriptive study of franchising laws of Malaysia and Dubai would be managed. At the end of this chapter, a comparative study of franchising laws of Pakistan, Malaysia, and Dubai could be accommodated and attached.

2.2. CONCEPT OF LAW-A HISTORICAL SURVEY 2.2.1. LAW MEANING AND DEFINITION Law is a course of action of rules that are made and maintained through social or administrative foundations to oversee conduct. Law as a structure coordinates and ensures that a gathering exhibits respect, and value among themselves. State-approved laws can be made by a total lawmaking body or by a lone head, achieving statutes, by the authority through assertions and controls, or developed by judges through perspective, usually in uniquely based law regions. Private individuals can make legally limiting contracts, including tact understandings that may recognize elective declaration to the conventional court process. The game plan of laws themselves may be influenced by a constitution, made or verifiable, and the rights encoded in that. The law shapes legislative issues, monetary viewpoints, history and society in various ways and fills in as a referee of relations between people. A general refinement can be made between,

72 ______(a) Common law wards, in which an overseeing body or other central body groups and joins their laws,122and

(b) Customary law123 structures, where judge-made perspective is recognized as confining law. Irrefutably, religious laws expected an immense part even in settling of basic issues, is up 'til now used as a piece of some religious gatherings. Islãmic Sharia law is the world’s most comprehensively used religious law, and is used as the fundamental honest to goodness system in a couple of countries, for instance, Iran and Saudi Arabia. 124

The intercession of the law is all around isolated into two essential zones. Criminal law oversees lead that is seen as terrible to social demand and in which the obligated party may be confined or fined. Precedent-based law (not to be mixed up for customary law regions above) deals with the assurance of cases (question) between individuals or associations.

Law gives a wellspring of quick examination concerning true blue history, hypothesis, money related examination and human science. Law in like manner raises essential and complex issues concerning correspondence, goodness, and value.

Different implications of law have been progressed all through the many years.

The Third New International Dictionary from Merriam-Webster describes law as:

"Law is a coupling custom or routine with respect to a gathering; an oversee or strategy for lead or action that is suggested or formally seen as official by a prevalent controlling master or is impacted necessary by an approve (as a presentation, to declare, rescript, organize, law, statute, assurance, run,

122 Hobbes, Thomas. A Dialogue between a Philosopher and a Student of the Common Laws of England. University of Chicago Press, 1997. 123 Swiderska, Krystyna. "Protecting community rights over traditional knowledge: Implications of customary laws and practices." (2006). 124 Vogel, Frank E. ISLMIC Law and the Legal System of Saudí: Studies of Saudi Arabia. Vol. 8. Brill,

73 ______legitimate decision, or utilize) made, saw, or maintained by the controlling master." 125

The Dictionary of the History of Ideas distributed by Scribner's in 1973 characterized the idea of law likewise as:

"A legitimate framework is the most unequivocal, organized, and complex method of managing human direct. In the meantime, it has just a single impact in the accumulation of principles which impact conduct, for social and good standards of a less standardized kind is likewise of extraordinary importance.”126

The Dictionary of the History of Ideas disseminated by Scribner's in 1973 portrayed the possibility of law moreover as:

"A true-blue structure is the most unequivocal, sorted out, and complex strategy for overseeing human direct. Meanwhile, it has only a solitary effect in the collection of standards which affect lead, for social and great norms of a less institutionalized kind is in like manner of remarkable significance."

There have been a couple of tries to make "an overall sufficient significance of law". In 1972, one source showed that no such definition could be created.

McCoubrey and White said that the request "what is law?" has no essential answer. Glanville Williams said that the significance of "law" depends upon the setting in which that word is used. He said that, for example, "early standard law" and "common law" were settings where "law" had two one of a kind and past compromise implications. Thurman Arnold said that plainly it is hard to portray "law" and that it is moreover correspondingly clear that the fight to describe that word should not ever be relinquished. It is possible to take the view that there is no convincing motivation to describe "law" (e.g. "we should ignore comprehensive proclamations and get down to cases"). 127

125 Merriam-Webster. Merriam-Webster's collegiate dictionary. Merriam-Webster, 2004. 126 Wiener, Philip P. "Dictionary of the History of Ideas Studies of Selected Pivotal Ideas. Philip P. Wiener, Editor in Chief." (1973). 127 Sperber, Melysa H. "John Walker Lindh and Yaser Esam Hamdi: Closing the Loophole in International Humanitarian Law for American Nationals Captured Abroad While Fighting with Enemy Forces." Am. Crim. L. Rev. 40 (2003): 159.

74 ______2.2.2. HISTORICAL BACKGROUND OF LAW Ruler Hammurabi is revealed the code of laws by the Mesopotamian sun god Shamash, in like manner worshiped as the master of value. Operation of law interfaces about to the headway of human advance. Outdated Egyptian law, dating as far back as 3000 BC, contained a typical code that was likely broken into twelve books. It relied upon the possibility of Ma'at, depicted by custom, legitimate talk, social correspondence and fairness. By the 22nd century BC, the outdated Sumerian ruler Ur-Nammu had arranged the primary law code, which involved casuistic verbalizations ("if … then ..."). Around 1760 BC, King Hammurabi furthermore made Babylonian law, by systematizing and recording it in stone. Hammurabi put a couple of copies of his law code all through the kingdom of Babylon as stelae, for the entire open to see; this injury up doubtlessly known as the Codex Hammurabi. The most set up copy of these stelae was found in the nineteenth century by British Assyriologists, and has since been totally transliterated and changed over into various lingos, including English, Italian, German, and French. 128

The Old Testament backpedals to 1280 BC and shows up as great targets as recommendations for a fair society. The little Greek city-state, obsolete Athens, from about the eighth century BC was the fundamental society to be established on broad fuse of its citizenry, notwithstanding women and the slave class. Nevertheless, Athens had no genuine science or single word for "law", depending rather on the three-course refinement between divine law (thémis), human declaration (nomos) and custom (díkē). However Ancient Greek law contained genuine secured headways in the change of vote based system. 129

Roman law was strongly affected by Greek reasonability, however its point by point rules were created by capable legitimate consultants and were exceptionally complex. Over the several years between the climb and diminishing of the Roman Empire, law was acclimated to adjust to the

128 Wiseman, Donald J. "The Laws of Hammurabi Again." Journal of Semitic Studies 7 (1962): 161. 129 Charlesworth, James H., ed. The Old Testament Pseudepigrapha. Vol. 2. Hendrickson Publishers, 2010.

75 ______changing social conditions and experienced huge codification under Theodosius II and Justinian I. In spite of the fact that codes were supplanted by custom and case law in the midst of the Dark Ages, Roman law was rediscovered around the eleventh century when medieval legitimate analysts began to ask about Roman codes and change their thoughts. Latin genuine proverbs (called brocards) were accumulated for course. In medieval England, royal courts developed an array of perspective which later transformed into the point of reference based law. A huge Law Merchant was confined so merchants could trade with essential measures of preparing rather than with the many divided highlights of adjacent laws. The Law Merchant, a forerunner to exhibit day business law, complemented the chance to contract and alienability of property. As patriotism created in the eighteenth and nineteenth several years, the Law Merchant was united into countries' adjacent law under new amicable codes. The Napoleonic and German Codes transformed into the most convincing. Instead of English point of reference based law, which involves huge tomes of case law, codes in little books are definitely not hard to convey and basic for judges to apply. In any case, today there are signs that normal and point of reference based law are meeting. EU law is ordered in settlements, however makes through the perspective set around the European Court of Justice. The Constitution of India is the longest created constitution for a country, containing 444 articles, 12 designs, different adjustments and 117,369 words. 130

Out of date India and China address specific traditions of law, and have for the most part had independent schools of genuine speculation and practice. The Arthashastra, likely accumulated around 100 ADS (regardless of the way that it contains more settled material), and the Manusmriti (c. 100– 300 AD) were foundational treatises in India, and incorporate works thought about conclusive genuine direction. Manu's central thinking was versatility and pluralism, and was alluded to across finished Southeast Asia. This Hindu custom, close by Islãmic law, was supplanted by the standard law when India ended up being a bit of the British Empire. Malaysia, Brunei, Singapore and

130 Nicholas, Barry, and Ernest Metzger. Introduction to Roman law. Oxford University Press, 2008.

76 ______Hong Kong also grasped the point of reference based law. The eastern Asia honest to goodness custom mirrors an unprecedented blend of standard and religious impacts. Japan was the key country to begin modernizing its legal system along western lines, by getting bits of the French, yet for the most part the German Civil Code. This not entirely reflected Germany's status as a rising power in the late nineteenth century. So likewise, standard Chinese law offered way to deal with westernization towards the keep going quite a while of the Qing Dynasty as six private law codes build generally in light of the Japanese model of German law. Today Taiwanese law holds the closest getting a kick out of the chance to the codifications from that period, because of the split between Chiang Kai-shek's loyalists, who fled there, and Mao Zedong's communists who won control of the region in 1949. The current honest to goodness system in the People's Republic of China was seriously influenced by Soviet Socialist law, which fundamentally explodes legitimate law to the burden of private law rights. Because of fast industrialization, today China is encountering a methodology of progress, at any rate the extent that money related, if not social and political, rights. Another understanding code in 1999 addressed a move a1999 addressed a move a long way from administrative mastery. Besides, after game plans persevering fifteen years, in 2001 China joined the World Trade Organization.

"Be that as it may, what, all things considered, is a law? When I say that the protest of laws is constantly broad, I imply that law considers subjects all at once and activities in theory, and never a specific individual or activity. On this view, we on the double observe that it can never again be asked whose business it is to make laws, since they are demonstrations of the general will; nor whether the sovereign is exempt from the laws that apply to everyone else, since he is an individual from the State; nor whether the law can be vile, since nobody is unjustifiable to himself; nor how we can be both free and subject to the laws, since they are however registers of our wills." 131

The reasoning of law is regularly known as law. Standardizing law asks "what should law be?", while investigative law asks "what is law?" John Austin's

131 Van den Bossche, Peter. The law and policy of the World Trade Organization: text, cases and materials. Cambridge University Press, 2008.

77 ______utilitarian answer was that law is "summons, upheld by risk of authorizations, from a sovereign, to whom individuals have a propensity for obedience". Natural legal advisors on the opposite side, for example, Jean-Jacques Rousseau, contend that law reflects basically moral and unchangeable laws of nature. The idea of "normal law" developed in antiquated Greek rationality simultaneously and regarding the thought of equity, and re-entered the standard of Western culture through the compositions of Thomas Aquinas, remarkably his Treatise on Law. 132

Hugo Grotius, the originator of a basically rationalistic game plan of consistent law, fought that law rises up out of both a social drive—as Aristotle had illustrated—and reason. Immanuel Kant believed a moral fundamental requires laws "be picked similarly as they should hold as comprehensive laws of nature". Jeremy Bentham and his understudy Austin, following David Hume, believed this conflated the "is" and what "ought to be" issue. Bentham and Austin battled for law's positivism; that veritable law is thoroughly separate from "ethical quality". Kant was furthermore rebuffed by Friedrich Nietzsche, who rejected the standard of consistency, and assumed that law radiates from the will to impact, and can't be set apart as "moral" or "indecent".

In 1934, the Austrian researcher Hans Kelsen continued with the positivist tradition in his book the Pure Theory of Law. Kelsen assumed that in spite of the way that law is separate from significant quality, it is contributed with "normativity", which implies we ought to obey it. While laws are certain "is" clarifications (e.g. the fine to turn around on an interstate is €500); law uncovers to us what we "should" do. Thusly, each genuine system can be evaluated to have a fundamental standard (Grundnorm) teaching us to go along. Kelsen's critical foe, Carl Schmitt, rejected both positivism and the likelihood of the lead of law since he didn't recognize the matchless quality of hypothetical managing gauges over bond political positions and choices. In this way, Schmitt bolstered a statute of the exclusion (exceedingly touchy circumstance), which denied that legal benchmarks could fuse all of political

132 Austin, John. ... Lectures on Jurisprudence: Or, The Philosophy of Positive Law. J. Murray, 1875.

78 ______experience. Later in the twentieth century, H. L. A. Hart ambushed Austin for his upgrades and Kelsen for his fictions in The Concept of Law. Hart battled law is a course of action of guidelines, separated into fundamental (standards of direct) and discretionary ones (rules steered to experts to control basic precepts). Helper standards are furthermore disconnected into principles of intercession (to decide legitimate inquiry), norms of advance (empowering laws to be varied) and the administer of affirmation (empowering laws to be recognized as considerable). Two of Hart's understudies continued with the reasonable discourse: In his book Law's Empire, Ronald Dworkin attacked Hart and the positivists for their refusal to see law as a moral issue. Dworkin battles that law is an "interpretive idea", that anticipates that judges will find the best fitting and most response for an authentic inquiry, given their secured traditions. Joseph Raz, on the other hand, ensured the positivist perspective and investigated Hart's "sensitive social suggestion" approach in The Authority of Law. Raz battles that law is authority, identifiable essentially through social sources and without reference to moral considering. In his view, any order of standards past their part as conclusive instruments in intervention are best left to human science, rather than statute.

"In any case, what, everything considered, is a law? When I say that the challenge of laws is always expansive, I infer that law considers subjects at the same time and exercises in principle, and never a particular individual or movement. On this view, we pronto watch that it can never again be asked whose business it is to make laws, since they are showings of the general will; nor whether the sovereign is excluded from the laws that apply to every other person, since he is a person from the State; nor whether the law can be awful, since no one is unmerited to himself; nor how we can be both free and subject to the laws, since they are however registers of our wills." 133

The thinking of law is consistently known as law. Institutionalizing law asks "what should law be?", while investigative law asks "what is law?" John Austin's utilitarian answer was that law is "summons, maintained by danger

133 Thorsteinsson, Pa. "Aristotle on law." PhD diss., University of Cambridge, 2011.

79 ______of approvals, from a sovereign, to whom people have a penchant for compliance". Common lawful consultants on the contrary side, for instance, Jean-Jacques Rousseau, battle that law reflects essentially moral and unchangeable laws of nature. The possibility of "ordinary law" created in out of date Greek objectivity all the while and with respect to the prospect of value, and re-entered the standard of Western culture through the syntheses of Thomas Aquinas, astoundingly his Treatise on Law. 134

One definition is that law is a game plan of guidelines and tenets which are executed through social establishments to regulate conduct. In the Concept of Law Hart fought law is a "game plan of tenets"; Austin said law was "the summon of a sovereign, maintained by the risk of an authorize"; Dworkin delineates law as an "interpretive thought" to finish value in his substance titled Law's Empire; and Raz fights law is a "pro" to intercede people's interests. Holmes said "The expectations of what the courts will do really, and nothing more self-important, are what I mean by the law." In his Treatise on Law Aquinas fights that law is a sound asking for of things which concern the advantage of everybody that is proclaimed by whoever is blamed for the care of the group. The sense of this explanation is suitable in the perspective of positive thinking and natural plot.135

134 Raz, Joseph. The authority of law: essays on law and morality. Oxford University Press on Demand, 2009. 135 Raz, Joseph. "Rule of law and its virtue." Law Quarterly Review 93, no. APR (1977): 195-211. 136 Van den Bossche, Peter. The law and policy of the World Trade Organization: text, cases and materials. Cambridge University Press, 2008.

80 ______The reasoning of law is regularly known as law. Standardizing law asks "what should law be?", while investigative law asks "what is law?" John Austin's utilitarian answer was that law is "summons, upheld by risk of authorizations, from a sovereign, to whom individuals have a propensity for obedience". Natural legal advisors on the opposite side, for example, Jean-Jacques Rousseau, contend that law reflects basically moral and unchangeable laws of nature. The idea of "normal law" developed in antiquated Greek rationality simultaneously and regarding the thought of equity, and re-entered the standard of Western culture through the compositions of Thomas Aquinas, remarkably his Treatise on Law. 137

One definition is that law is an arrangement of standards and rules which are implemented through social foundations to administer behavior. In the Concept of Law Hart contended law is an "arrangement of rules"; Austin said law was "the summon of a sovereign, upheld by the danger of a sanction"; Dworkin depicts law as an "interpretive idea" to accomplish equity in his content titled Law's Empire; and Raz contends law is a "specialist" to intervene individuals' interests. Holmes said "The predictions of what the courts will do actually, and nothing more pompous, are what I mean by the law." In his Treatise on Law Aquinas contends that law is a sound requesting of things which concern the benefit of everyone that is declared by whoever is accused of the care of the community. This definition has both positivist and naturalist elements.138 a) ECONOMIC ANALYSIS (LAW AND ECONOMICS) In the eighteenth-century Adam Smith showed a philosophical foundation for clearing up the association among law and financial matters. The prepare rose to some degree out of an investigation of trade unions and U.S. antitrust law. The most intense protectors, for instance, Richard Posner and Oliver Williamson and the gathered Chicago School of business examiners and legitimate consultants including Milton Friedman and Gary Becker, are generally supporters of deregulation and privatization, and are antagonistic

137 Austin, John. ... Lectures on Jurisprudence: Or, The Philosophy of Positive Law. J. Murray, 1875. 138 Raz, Joseph. "Rule of law and its virtue." Law Quarterly Review 93, no. APR (1977): 195-211.

81 ______to state control or what they see as imprisonments on the operation of free markets. Richard Posner, one of the Chicago School, runs a blog with Bank of Sweden Prize winning budgetary investigator Gary Becker. The most observable money related master of law is 1991 Nobel Prize champ Ronald Coase, whose at first huge article, The Nature of the Firm (1937), battled that the reason behind the nearness of firms (associations, affiliations, et cetera.) is the nearness of trade costs. Sound individuals trade through corresponding contracts on open markets until the point that the costs of trades infer that using organizations to convey things is all the more fiscally sharp. His second genuine article, The Problem of Social Cost (1960), battled that in case we lived in a world without trade costs, people would manage each other to make a comparable segment of benefits, paying little regard to the way a court may oversee in property question. Coase used the instance of an inconvenience case named Sturges v Bridgman, where an uproarious sweet producer and a peaceful master were neighbors and went to court to see who should need to move. Coase said that paying little regard to whether the judge chose that the sweet producer expected to stop using his device, or that the expert expected to persist it, they could strike an ordinarily beneficial arrangement about who moves that accomplishes a comparable aftereffect of advantage scattering. Simply the nearness of trade costs may turn away this. 139 Along these lines, the law ought to pre-empt what may happen, and be guided by the most profitable plan. The musing is that law and control are not as fundamental or effective at helping people as lawful advisors and government coordinators accept. Coase and others like him required a distinction in approach, to put the heaviness of affirmation for helpful results on a governing body that was intervening in the market, by analyzing the costs of activity.140 b) SOCIOLOGY OF LAW Human study of law is a contrasting field of aggregate that takes a gander at the association of law with society and spreads with statute,

139 Coase, Ronald Harry. "The problem of social cost." The journal of Law and Economics 56, no. 4 (2013): 837-877. 140 Pistor, Katharina, Philip A. Wellons, and Jeffrey Sachs. The Role of Law and Legal Institutions in Asian Economic Development, 1960-1995. Oxford University Press, USA, 1999.

82 ______levelheadedness of law, social theory and more particular subjects, for instance, criminology. The establishments of social improvement, social norms, question getting ready and legitimate culture are entering districts for ask for in this learning field. Human study of law is occasionally seen as a sub-prepare of humanism, yet its associations with the academic educate of law are likewise strong, and it is best seen as a trans disciplinary and multidisciplinary consider focused on the hypothesis and correct examination of legal practices and experiences as social wonders. In the United States the field is normally called law and society contemplates; in Europe it is more frequently suggested as socio-honest to goodness examinations. At in any case, law authorities and legal rationalists were suspicious of human study of law. Kelsen attacked one of its originators, Eugen Ehrlich, who hoped to clear up the refinements and relationship between positive law, which lawful guides learn and apply, and diverse sorts of 'law' or social norms that control standard everyday presence, all things considered shielding conflicts from accomplishing legal advisors and courts. Contemporary investigate in human art of law is very stressed over how law is making outside discrete state areas, being conveyed through social participation in an extensive variety of sorts of social fields, and picking up an average assortment of wellsprings of (every now and again battling or conflicting) master in shared frameworks existing from time to time inside nation states however logically moreover transnational. 141

Max Weber in 1917, Weber began his employment as a lawful consultant, and is seen as one of the creators of humanism and human investigation of law.

Around 1900 Max Weber portrayed his "coherent" approach to manage law, recognizing the "real adjusted casing" as a kind of authority, not inferable from singular master but instead to the expert of hypothetical standards. Formal legitimate objectivity was his term for the key typical for the kind of

141 Austin, John. ... Lectures on Jurisprudence: Or, The Philosophy of Positive Law. J. Murray, 1875.

83 ______sound and quantifiable law that was a precondition for display day political headways

Around 1900 Max Weber described his "coherent" approach to manage law, perceiving the "honest to goodness sensible shape" as a kind of control, not inferable from singular master yet rather to the pro of reasonable standards. Formal legitimate soundness was his term for the key typical for the kind of mindful and quantifiable law that was a precondition for introduce day political upgrades and the bleeding edge bureaucratic state. Weber saw this law as having made in parallel with the advancement of private enterprise. Another driving humanist, Émile Durkheim, wrote in his excellent work The Division of Labor in Society that as society ends up being all the more confusing, the gathering of precedent-based law concerned essentially with pay and compensation creates to the impairment of criminal laws and remedial assents. Other noticeable early legitimate sociologists included Hugo Sinzheimer, Theodor Geiger, Georges Gurvitch and Leon Petrażycki in Europe, and William Graham Sumner in the U.S. At the point when all is said in done, honest to goodness structures can be part between customary law and point of reference based law frameworks. The articulation "precedent-based law" insinuating a legitimate system should not to be confused for "precedent-based law" as a get-together of legal subjects specific from criminal or open law. A third kind of legal structure—recognized by a couple of countries without segment of house of prayer and state—is religious law, in light of hallowed compositions. The specific structure that a country is represented by is oftentimes controlled by its history, relationship with various countries, or its adherence to all inclusive gages. The sources that wards hold onto as absolutely confining are the portraying features of any genuine structure. 142

2.2.3. LEGAL SYSTEM OF LAW Amid the latest couple of decades, one Around 1900 Max Weber characterized his "logical" way to deal with law, distinguishing the "legitimate balanced frame" as a kind of control, not inferable from individual specialist

142 Gurvitch, Georges. Sociology of law. Transaction Publishers, 1973.

84 ______but rather to the expert of conceptual standards. Formal legitimate objectivity was his term for the key normal for the sort of reasonable and measurable law that was a precondition for present day political advancements and the cutting edge bureaucratic state. Weber saw this law as having created in parallel with the development of free enterprise. Another driving humanist, Émile Durkheim, wrote in his great work The Division of Labor in Society that as society turns out to be more intricate, the group of common law concerned essentially with compensation and remuneration develops to the detriment of criminal laws and corrective sanctions. Other remarkable early lawful sociologists included Hugo Sinzheimer, Theodor Geiger, Georges Gurvitch and Leon Petrażycki in Europe, and William Graham Sumner in the U.S. In general, lawful frameworks can be part between common law and customary law frameworks. The expression "common law" alluding to a legitimate framework ought not be mistaken for "common law" as a gathering of lawful subjects unmistakable from criminal or open law. A third kind of lawful framework—acknowledged by a few nations without partition of chapel and state—is religious law, in light of sacred texts. The particular framework that a nation is administered by is frequently controlled by its history, associations with different nations, or its adherence to universal principles. The sources that purviews embrace as definitively restricting are the characterizing highlights of any legitimate framework. However, arrangement involves frame as opposed to substance, since comparative principles frequently win.143 a) CIVIL LAW Common law is the lawful framework utilized as a part of most nations around the globe today. In common law the sources perceived as definitive may be, essentially, enactment—particularly codifications in constitutions or statutes go by government—and custom. [69] Codifications go back centuries, with one early case being the Babylonian Codex Hammurabi. Present day common law frameworks basically get from the lawful routine with regards to the sixth century Eastern Roman Empire whose writings were rediscovered

143 Hudec, Robert E. Enforcing international trade law: The evolution of the modern GATT legal system. MICHIE, 1993.

85 ______by late medieval Western Europe. Roman law in the times of the Roman Republic and Empire was vigorously procedural, and did not have an expert legitimate class. Rather a lay justice, file, was arbitrated. Choices were not distributed in any efficient way, so any case law that created was camouflaged and practically unrecognized. Each case was to be chosen over again from the laws of the State, which reflects the (hypothetical) insignificance of judges' choices for future cases in common law frameworks today. From 529– 534 AD the Byzantine Emperor Justinian I systematized and merged Roman law up until that point, with the goal that what remained was one-twentieth of the mass of lawful writings from some time recently. This ended up noticeably known as the Corpus Juris Civil. As one lawful history specialist expressed, "Justinian intentionally thought back to the brilliant period of Roman law and intended to reestablish it to the pinnacle it had achieved three centuries previously." The Justinian Code stayed in constrain in the East until the fall of the Byzantine Empire. Western Europe, then, depended on a blend of the Theodosian Code and Germanic standard law until the point that the Justinian Code was rediscovered in the eleventh century, and researchers at the University of Bologna utilized it to translate their own laws. Common law codifications construct nearly in light of Roman law, close by a few impacts from religious laws, for example, group law, kept on spreading all through Europe until the Enlightenment; at that point, in the nineteenth century, both France, with the Code Civil, and Germany, with the Bürgerliches Gesetzbuch, modernized their legitimate codes. Both these codes affected vigorously not just the law frameworks of the nations in mainland Europe (e.g. Greece), yet additionally the Japanese and Korean lawful conventions. Today, nations that have common law frameworks extend from Russia and China to the vast majority of Central and Latin America. Except for Louisiana's Civil Code, the United States takes after the customary law framework portrayed underneath.144 b) COMMON LAW King John of England signs Magna Carta

144 Rehnquist, William H. All the laws but one: Civil liberties in wartime. Vintage, 2000.

86 ______In precedent-based law legitimate frameworks, choices by courts are expressly recognized as "law" on measure up to balance with statutes received through the authoritative procedure and with directions issued by the official branch. The "precept of point of reference", or gaze decisis (Latin for "to remain by choices") implies that choices by higher courts tie bring down courts, and future choices of a similar court, to guarantee that comparative cases achieve comparative outcomes. Interestingly, in "common law" frameworks, administrative statutes are ordinarily more definite, and legal choices are shorter and less point by point, on the grounds that the judge or counselor is just written work to choose the single case, instead of to set out thinking that will manage future courts.

Customary law began from England and has been acquired by practically every nation once attached to the British Empire (aside from Malta, Scotland, the U.S. territory of Louisiana, and the Canadian area of Quebec). In medieval England, the Norman Conquest the law shifted shire-to-shire, in light of unique innate traditions. The idea of a "precedent-based law" created amid the rule of Henry II amid the late twelfth century, when Henry named judges that had expert to make a systematized and brought together arrangement of law "normal" to the nation. The following real advance in the development of the precedent-based law came when King John was constrained by his nobles to sign a report restricting his power to pass laws. This "awesome contract" or Magna Carta of 1215 likewise required that the King's escort of judges hold their courts and judgments at "a specific place" as opposed to apportioning despotic equity in eccentric places about the nation. A concentrated and world class gathering of judges obtained a prevailing part in law-production under this framework, and contrasted with its European partners the English legal turned out to be exceptionally brought together. In 1297, for example, while the most elevated court in France had fifty-one judges, the English Court of Common Pleashad five. This intense and tight-sew legal offered ascend to a systematized procedure of creating customary law. 145

145 Franck, Thomas M. "Fairness in international law and institutions." (1998).

87 ______Be that as it may, the framework turned out to be excessively systematized— excessively unbending and rigid. Accordingly, as time continued, expanding quantities of subjects appealed to the King to supersede the custom-based law, and on the King's sake the Lord Chancellor offered judgment to do what was fair for a situation. From the season of Sir Thomas More, the main legal counselor to be delegated as Lord Chancellor, a precise assortment of value grew up close by the inflexible custom-based law, and built up its own Court of Chancery. At to start with, value was frequently reprimanded as whimsical, that it differed by the length of the Chancellor's foot. After some time, courts of value created strong standards, particularly under Lord Eldon. In the nineteenth century in England, and in 1937 in the U.S., the two frameworks were blended.

In building up the custom-based law, scholastic compositions have constantly had a critical influence, both to gather general standards from scattered case law, and to contend for change. William Blackstone, from around 1760, was the main researcher to gather, depict, and educate the custom-based law. Yet, just in portraying, researchers who looked for clarifications and fundamental structures gradually changed the way the law really worked.146 c) RELIGIOUS LAW

Religious law is expressly in view of religious statutes. Illustrations incorporate the Jewish Halakha and Islãmic Sharia—both of which decipher as the "way to take after"— while Christian ordinance law likewise gets by in some congregation groups. Regularly the ramifications of religion for law is inalterability, on the grounds that the expression of God can't be altered or enacted against by judges or governments. However, an exhaustive and point by point lawful framework by and large requires human elaboration. For example, the Qurãn has some law, and it goes about as a wellspring of further law through elucidation, Qiyas (thinking by similarity), Ijma (agreement) and point of reference. This is for the most part contained in an

146 Hobbes, Thomas. A Dialogue between a Philosopher and a Student of the Common Laws of England. University of Chicago Press, 1997.

88 ______assemblage of law and statute known as Sharia and FIQH individually. Another case is the Torah or Old Testament, in the Pentateuch or Five Books of Moses. This contains the essential code of Jewish law, which some Israeli people group utilize. The Halakha is a code of Jewish law which outlines a portion of the Talmud's elucidations. In any case, Israeli law enables prosecutors to utilize religious laws just on the off chance that they pick. Standard law is just being used by individuals from the Catholic Church, the Eastern Orthodox Church and the Anglican Communion. 147

A trial in the Ottoman Empire, 1879, when religious law applied under the Mecelle d) SHARIAH LAW

Until the eighteenth century, Sharia law was drilled all through the Muslim world in a non-systematized shape, with the Ottoman Empire's Mecelle code in the nineteenth century being a first endeavor at arranging components of Sharia law. Since the mid-1940s, endeavors have been made, in a great many countries, to carry Sharia law more into line with present day conditions and originations. In present day times, the lawful frameworks of numerous Muslim nations draw upon both common and customary law conventions and also Islãmic law and custom. The constitutions of certain Muslim states, for example, Egypt and Afghanistan, perceive Islãm as the religion of the state, obliging council to cling to Sharia. Saudi Arabia perceives Qurãn as its constitution, and is administered on the premise of Islãmic law. Iran has additionally seen an emphasis of Islãmic law into its lawful framework after 1979. Amid the latest couple of decades, one of the key features of the improvement of Islãmic resurgence has been the call to restore the Sharia, which has made an enormous measure of composing and impacted world legislative issues.

147 Tierney, Brian. The Idea of Natural Rights: Studies on Natural Rights, Natural Law, and Church Law, 1150-1625. Vol. 5. Wm. B. Eerdmans Publishing, 1997.

89 ______e) LAWFUL FOUNDATIONS (LEGAL INSTITUTIONS)

It is a certified solidarity of them in all cases and a comparative individual, made by vow of each man with each man, in such path just as each man should state to each man: I endorse and surrender my benefit of supervising myself to this man, or to this get-together of men, on this condition; thou surrender, thy proper to him, and affirm each one of his exercises in like way.

Thomas Hobbes, Leviathan, XVII

The rule foundations of law in industrialized countries are free courts, appoint parliaments, a dependable authority, the military and police, bureaucratic affiliation, the legal calling and normal society itself. John Locke, in his Two Treatises of Government, and Baron de Montesquieu in The Spirit of the Laws, pushed for a segment of powers between the political, lawmaking body and authority bodies. They decide that no individual should have the ability to usurp all powers of the state, as opposed to the absolutist theory of Thomas Hobbes' Leviathan.

Max Weber and others reshaped thinking on the development of state. Current military, policing and bureaucratic control over typical inhabitants' step by step lives pose remarkable issues for obligation that earlier writers, for instance, Locke or Montesquieu couldn't have foreseen. The custom and routine concerning the honest to goodness calling is a basic bit of people's passageway to value, while normal society is a term used to insinuate the social associations, gatherings and affiliations that shape law's political commence. 148 f) JUDICIARY

A legitimate is different judges intervening inquiry to choose result. Most countries have systems of propel courts, answering up to a unique genuine master. In the United States, this master is the Supreme Court; in Australia, the High Court; in the UK, the Supreme Court; in Germany, the

148 Weiss, Susan. "Human Rights under State-Enforced Religious Family Laws in Israel, Egypt and IndiaYüksel SezginCambridge University Press, 2013, 322 pp, $99 hb, ISBN 9781107041400." Israel Law Review 48, no. 2 (2015): 273-278.

90 ______Bundesverfassungsgericht; and in France, the Cour de Cassation. For most European countries the European Court of Justice in Luxembourg can overrule national law, when EU law is imperative. The European Court of Human Rights in Strasbourg licenses locals of the Council of Europe part states to pass on cases relating to human rights issues before it.

The judges of the International Court of Justice in The Hague

A couple of countries empower their most essential lawful master to overrule sanctioning they choose to be unlawful. For example, in Brown v. driving gathering of Education, the United States Supreme Court refuted many state statutes that had set up racially disengaged schools, watching such statutes to be incongruent with the Fourteenth Amendment to the United States Constitution.

A legitimate is theoretically bound by the constitution, also as all other government bodies might be. In numerous countries judges may simply interpret the constitution and each other law. Regardless, in standard law countries, where matters are not set up, the legitimate may moreover make law under the tradition of perspective. The UK, Finland and New Zealand pronounce the ideal of parliamentary influence, whereby the unelected lawful may not steamed law pass by a reasonable council.

In friend states, for instance, China, the courts are consistently seen as parts of the authority, or subservient to the lawmaking body; managerial associations and on-screen characters apply thus extraordinary sorts of impact on the legal. In Muslim countries, courts every now and again dissect whether state laws hold quick to the Sharia: The Supreme Constitutional Court of Egypt may invalidate such laws, and in Iran the Guardian Council ensures the closeness of the sanctioning with the "criteria of Islãm".149 g) LEGISLATURE

Detectable instances of overseeing bodies are the Houses of Parliament in London, the Congress in Washington D.C., the Bundestagin Berlin, the

149 de Secondat, Charles, and Baron De Montesquieu. The Spirit of Laws. Translated by T. Nugent). Chicago: Encyclopaedia Britannica. Google Scholar, 1748.

91 ______Duma in Moscow, the Parlamento Italiano in Rome and the Assemblée nationale in Paris. By the rule of delegate government people vote for administrators to finish their wants. Regardless of the way that countries like Israel, Greece, Sweden and China are unicameral, most countries are bicameral, which implies they have two freely assigned managerial houses.

In the 'lower house' officials are addressed tinier electorates. The 'upper house' is regularly addressed states in an administration system (as in Australia, Germany or the United States) or different voting outline in a unitary structure (as in France). In the UK the upper house is appointed by the lawmaking body as a position of review. One input of bicameral systems with two picked chambers is that the upper and lower houses may simply reflect each other. The regular hobby of bicameralism is that an upper chamber goes about as a position of review. This can restrain mediation and inappropriate behavior in regulatory activity.

To pass authorization, a bigger piece of the people from a lawmaking body must vote for a bill (proposed law) in each house. Routinely there will be a couple of readings and amendments proposed by the unmistakable political gatherings. If a country has a dove in constitution, an unprecedented larger part for changes to the constitution may be required, taking off upgrades to the law more troublesome. An organization as a rule drives the technique, which can be formed from Members of Parliament (e.g. the UK or Germany). Regardless, in a presidential structure, the organization is ordinarily formed by an authority and his or her named agency specialists (e.g. the United States or Brazil). 150 h) EXECUTIVE (GOVERNMENT)

The authority in an honest to goodness system fills in as the point of convergence of political pro of the State. In a parliamentary structure, as with Britain, Italy, Germany, India, and Japan, the authority is known as the agency, and made out of people from the administering body. The authority

150 Hening, William Waller. The statutes at large: being a collection of all the laws of Virginia, from the first session of the legislature, in the year 1619: published pursuant to an act of the General Assembly of Virginia, passed on the fifth day of February one thousand eight hundred and eight... Vol. 6. 1819.

92 ______is driven by the head of government, whose office holds control under the conviction of the lawmaking body. Since unmistakable races name political social affairs to supervise, the pioneer of a get-together can change amidst races.

The head of state is isolated from the authority, and symbolically builds up laws and goes about as illustrative of the nation. Cases join the President of Germany (designated by people from government and state lawmaking bodies), the Queen of the United Kingdom (an inborn office), and the President of Austria (picked by surely understood vote). The other basic model is the presidential structure, found in the United States and in Brazil. In presidential structures, the authority goes about as both head of state and head of government, and has vitality to appoint an unelected department. Under a presidential system, the official branch is separate from the gathering to which it isn't responsible.

In spite of the way that the piece of the official contrasts from country to country, by and large it will propose the prevailing piece of authorization, and propose government inspiration. In presidential systems, the authority much of the time can veto order. Most authorities in the two structures are responsible for outside relations, the military and police, and the organization. Ministers or distinctive specialists head a country's open work environments, for instance, an outside administration or protection benefit. The race of a substitute authority is in this manner fit for changing an entire country's approach to manage government.151 i) MILITARY AND POLICE

While military affiliations have existed as long as government itself, the likelihood of a standing police drives is a by and large present-day thought. For example, Medieval England's game plan of voyaging criminal courts, or assizes, used show trials and open executions to instill bunches with fear to keep up control. The essential current police were likely those in seventeenth century Paris, in the court of Louis XIV, regardless of the way that the Paris

151 Setty, Sudha. "No More Secret Laws: How Transparency of Executive Branch Legal Policy Doesn't Let the Terrorists Win." U. Kan. L. Rev. 57 (2008): 579.

93 ______Prefecture of Police state they were the universes at first formally dressed policemen.

Max Weber comprehensively battled that the state is the thing that controls the controlling foundation on the real use of power. The military and police finish prerequisite at the request of the organization or the courts. The term failed state insinuates states that can't complete or approve approaches; their police and military never again control security and demand and society move into disobedience, the nonappearance of government. 152

j) ADMINISTRATION(BUREAUCRACY)

The United Nations' New York home office houses government representatives that serve its 193-section states.

The verifiable underpinnings of "association" gets from the French word for "office" (expert) and the Ancient Greek for word "control" (kratos). Like the military and police, a legitimate structure's organization workers and bodies that make up its organization do the requests of the authority. One of the soonest references to the thought was made by Baron de Grimm, a German maker who lived in France. In 1765 he formed,

The bona fide soul of the laws in France is that organization of which the late Monsieur de Gournay used to protest so uncommonly; here the work environments, partners, secretaries, analysts and intendants are not designated to benefit individuals as a rule interest, unquestionably the all- inclusive community interest appears to have been set up so work environments may exist.

Negativity over "officialdom" is so far typical, and the workings of open employees is normally separated to private endeavor propelled by benefit. In conviction exclusive organizations, especially considerable ones, moreover have administrations. Negative perspective of "custom" aside, open organizations, for instance, coaching, social protection, policing or open transport are seen as a crucial state work mother

152 Katzenstein, Peter J. Cultural norms and national security: Police and military in postwar Japan. Cornell University Press, 1998.

94 ______Writing in the mid twentieth century, Max Weber trusted that a complete component of a created state had come to be its bureaucratic help. [118] Weber composed that the ordinary attributes of present day administration are that authorities characterize its main goal, the extent of work is bound by guidelines, and administration is made out of vocation specialists who oversee top down, conveying through composing and restricting open hirelings' watchfulness with rules.153 k) LEGAL PROFESSION

In common law frameworks, for example, those of Italy, France, Germany, Spain and Greece, there is a particular class of legal official, a legitimately prepared open official, remunerated by the gatherings to an exchange. This is a sixteenth century painting of such a legal official by Flemish painter Quentin Massys.

A result of the govern of law is the presence of a lawful calling adequately self-governing to summon the specialist of the free legal; the privilege to help of an attorney in a court continuing exudes from this conclusion—in England the capacity of lawyer or promoter is recognized from legitimate guide. As the European Court of Human Rights has expressed, the law ought to be sufficiently open to everybody and individuals ought to have the capacity to predict how the law influences them.

Keeping in mind the end goal to look after polished skill, the act of law is regularly managed by either an administration or free controlling body, for example, a bar affiliation, bar board or law society. Present day legal counselors accomplish unmistakable expert character through indicated legitimate techniques (e.g. effectively passing a qualifying examination), are required by law to have an exceptional capability (a legitimate training acquiring the understudy a Bachelor of Laws, a Bachelor of Civil Law, or a Juris Doctor degree. Higher scholastic degrees may likewise be sought after. Cases incorporate a Master of Laws, a Master of Legal Studies, a Bar

153 Witte, Ann D., and Diane F. Woodbury. "The effect of tax laws and tax administration on tax compliance: The case of the US individual income tax." National Tax Journal (1985): 1- 13.

95 ______Professional Training Course or a Doctor of Laws.), and are constituted in office by authoritative documents of arrangement (being admitted to the bar). There are few titles of regard to mean acclaimed legal counselors, for example, Esquire, to show attorneys of more noteworthy respect, and Doctor of law, to demonstrate a man who got a PhD in Law.

Numerous Muslim nations have created comparable standards about legitimate instruction and the lawful calling, however some still permit legal counselors with preparing in conventional Islãmic law to specialize in legal matters under the steady gaze of individual status law courts. In China and other creating nations there are not adequate professionally prepared individuals to staff the current legal frameworks, and, likewise, formal measures are more casual.

Once licensed, a legal counselor will frequently work in a law office, in chambers as a sole professional, in an administration post or in a private partnership as an inward advice. What's more, an attorney may turn into a legitimate specialist who gives on-request lawful research through a library, a business administration or independent work. Many individuals prepared in law put their abilities to use outside the lawful field altogether.

Critical to the act of law in the customary law convention is the legitimate research to decide the momentum condition of the law. This more often than not involves investigating case-law reports, lawful periodicals and enactment. Law hone likewise includes drafting reports, for example, court pleadings, convincing briefs, contracts, or wills and trusts. Arrangement and debate determination aptitudes (counting ADR systems) are likewise essential to lawful work on, contingent upon the field.154 l) CIVIL SOCIETY

The Classical republican idea of "common society" goes back to Hobbes and Locke. Locke saw common society as individuals who have "a typical set up law and judicature to interest, with expert to choose contentions between

154 Kronman, Anthony T. The lost lawyer: Failing ideals of the legal profession. Harvard University Press, 1995.

96 ______them. "German logician Georg Wilhelm Friedrich Hegel recognized the "state" from "common society" (bürgerliche Gesellschaft) in Elements of the Philosophy of Right.

Hegel trusted that common society and the state were perfect inverses, inside the plan of his rationalization hypothesis of history. The cutting-edge dipole state– common society was repeated in the speculations of Alexis de Tocqueville and Karl Marx. These days in post-current hypothesis common society is fundamentally a wellspring of law, by being the premise from which individuals shape conclusions and hall for what they trust law ought to be. As Australian attorney and creator Geoffrey Robertson QC composed of global law,

one of its essential present-day sources is found in the reactions of common men and ladies, and of the non-legislative associations which a considerable lot of them bolster, to the human rights manhandle they see on the TV screen in their front rooms.

The right to speak freely, flexibility of affiliation and numerous other individual rights enable individuals to accumulate, talk about, scrutinize and consider responsible their administrations, from which the premise of a deliberative majority rules system is framed. The more individuals are included with, worried by and fit for changing how political power is practiced over their lives, the more worthy and honest to goodness the law progresses toward becoming to the general population. The most recognizable foundations of common society incorporate monetary markets, benefit arranged firms, families, exchange unions, doctor's facilities, colleges, schools, philanthropies, debating clubs, non-administrative associations, neighborhoods, houses of worship, and religious affiliations. 155

2.2.4.LEGAL SUBJECTS OF LAW

Every single legitimate framework manages a similar fundamental issue, however wards order and recognize its lawful subjects in various ways. A typical refinement is that between "open law" (a term related intently to the

155 Cohen, Jean L., and Andrew Arato. Civil society and political theory. MIT press, 1994.

97 ______state, and including protected, authoritative and criminal law), and "private law" (which covers contract, tort and property). In common law frameworks, contract and tort fall under a general law of commitments, while trusts law is managed under statutory administrations or global traditions. Worldwide, established and authoritative law, criminal law, contract, tort, property law and trusts are viewed as the "conventional center subjects", despite the fact that there are many further teaches. 156 a) INTERNATIONAL LAW

Giving a constitution to open worldwide law, the United Nations framework was concurred amid World War II.

The Italian legal counselor Sir Alberico Gentili, the Father of worldwide law.

Worldwide law can allude to three things: open universal law, private global law or struggle of laws and the law of supranational associations.

 Public worldwide law concerns connections between sovereign countries. The hotspots for open worldwide law improvement are custom, practice and arrangements between sovereign countries, for example, the Geneva Conventions. Open worldwide law can be framed by global associations, for example, the United Nations (which was built up after the disappointment of the League of Nations to forestall World War II), the International Labor Organization, the World Trade Organization, or the International Monetary Fund. Open global law has an uncommon status as law on the grounds that there is no worldwide police power, and courts (e.g. the International Court of Justice as the essential UN legal organ) do not have the ability to punish rebellion. In any case, a couple of bodies, for example, the WTO, have successful frameworks of restricting discretion and question determination went down in terms of professional career sanctions.  Conflict of laws (or "private universal law" in common law nations) concerns which purview a lawful debate between private gatherings ought to be heard in and which ward's law ought to be connected. Today, organizations are progressively fit for moving capital and work supply chains

156 Smart, Carol. "Legal subjects and sexual objects: Ideology, law and female sexuality." Women in Law: Explorations in Law, Family and Sexuality (1985).

98 ______crosswise over outskirts, and additionally exchanging with abroad organizations, making the subject of which nation has purview considerably all the more squeezing. Expanding quantities of organizations decide on business mediation under the New York Convention 1958.  European Union law is the first and, up until now, just case of a globally acknowledged legitimate framework other than the UN and the World Trade Organization. Given the pattern of expanding worldwide monetary incorporation, numerous provincial assentions—particularly the Union of South American Nations—are on track to take after a similar model. In the EU, sovereign countries have accumulated their power in an arrangement of courts and political establishments. These foundations are enabled the capacity to authorize lawful standards both against and for part states and subjects in a way which isn't conceivable through open worldwide law. As the European Court of Justice said in the 1960s, European Union law constitutes "another legitimate request of worldwide law" for the common social and monetary advantage of the part states.157 b) CONSTITUTIONAL AND ADMINISTRATIVE LAW

The French Declaration of the Rights of Man and of the Citizen

Established and managerial law administers the undertakings of the state. Protected law concerns both the connections between the official, assembly and legal and the human rights or common freedoms of people against the state. Most purviews, similar to the United States and France, have a solitary classified constitution with a bill of rights. A couple, similar to the United Kingdom, have no such report. A "constitution" is just those laws which constitute the body politic, from statute, case law and tradition. A case named Entick v Carrington delineates a sacred guideline getting from the precedent- based law. Mr Entick's home was sought and scoured by Sheriff Carrington. At the point when Mr Entick griped in court, Sheriff Carrington contended that a warrant from a Government serve, the Earl of Halifax, was legitimate

157 Tetley, William, and Robert C. Wilkins. International conflict of laws: common, civil, and maritime. Intl Shipping Pubns, 1994.

99 ______specialist. Be that as it may, there was no composed statutory arrangement or court expert. The main judge, Lord Camden, expressed that,

The colossal end, for which men went into society, was to secure their property. That privilege is saved hallowed and incommunicable in all cases, where it has not been taken away or shortened by some open law for the benefit of the entire … If no reason can be found or delivered, the hush of the books is an expert against the litigant, and the offended party must have judgment.

The basic sacred standard, enlivened by John Locke, holds that the individual can do anything aside from that which is taboo by law, and the state may do nothing with the exception of that which is approved by law. Managerial law is the main technique for individuals to consider state bodies responsible. Individuals can sue an organization, neighborhood committee, open administration, or government service for legal audit of activities or choices, to guarantee that they conform to the law, and that the administration element watched required method. The principal pro managerial court was the Conseil d'état set up in 1799, as Napoleon accepted power in France. 158 c) CRIMINAL LAW

Criminal law, otherwise called corrective law, relates to wrongdoings and discipline. It in this manner directs the meaning of and punishments for offenses found to have an adequately pernicious social effect however, in itself, makes no ethical judgment on a guilty party nor forces confinements on society that physically keep individuals from carrying out a wrongdoing in any case. Examining, catching, charging, and attempting suspected wrongdoers are controlled by the law of criminal strategy. The worldview instance of a wrongdoing lies in the verification, past sensible uncertainty, that a man is blameworthy of two things. To start with, the denounced must carry out a demonstration which is considered by society to be criminal, or actus reus (blameworthy act). Second, the denounced must have the

158 Bradley, Anthony Wilfred, and Keith D. Ewing. Constitutional and administrative law. Vol. 1. Pearson Education, 2007.

100 ______essential malignant purpose to do a criminal demonstration, or mens rea (blameworthy personality). In any case, for supposed "strict obligation" wrongdoings, an actus reus is sufficient. Criminal frameworks of the common law custom recognize goal in the expansive sense (dolus directus and dolus eventualis), and carelessness. Carelessness does not convey criminal duty unless a specific wrongdoing accommodates its discipline.

A delineation of a seventeenth century criminal trial, for witchcraft in Salem

Cases of violations incorporate murder, ambush, extortion and burglary. In uncommon conditions guards can apply to particular acts, for example, slaughtering in self-preservation, or arguing craziness. Another illustration is in the nineteenth century English instance of R v Dudley and Stephens, which tried a protection of "need". The Mignonette, cruising from Southampton to Sydney, sank. Three team individuals and Richard Parker, a 17-year-old lodge kid, were stranded on a pontoon. They were starving and the lodge kid was near death. Headed to extraordinary craving, the team murdered and ate the lodge kid. The team survived and were safeguarded, however put on trial for kill. They contended it was important to execute the lodge kid to save their own particular lives. Master Coleridge, communicating huge objection, ruled, "to safeguard one's life is as a rule an obligation, yet it might be the plainest and the most elevated obligation to forfeit it." The men were condemned to hang, however popular supposition was overwhelmingly strong of the group's entitlement to save their own lives. At last, the Crown drove their sentences to a half year in prison.

Criminal law offenses are seen as offenses against not simply singular casualties, but rather the group too. The state, for the most part with the assistance of police, leads the pack in indictment, which is the reason in precedent-based law nations cases are refered to as "The People v ..." or "R (for Rex or Regina) v ...". Additionally, lay juries are regularly used to decide the blame of litigants on purposes of reality: juries can't change lawful principles. Some created nations still support the death penalty for criminal action, yet the typical discipline for a wrongdoing will be detainment, fines, state supervision, (for example, probation), or group benefit. Present day

101 ______criminal law has been influenced extensively by the sociologies, particularly as for condemning, legitimate research, enactment, and recovery. On the worldwide field, 111 nations are individuals from the International Criminal Court, which was set up to attempt individuals for violations against humankind.159 d) CONTRACT LAW

The celebrated Carbolic Smoke Ball promotion to cure flu was held to be a one-sided contract.

Contract law concerns enforceable guarantees, and can be summed up in the Latin expression pacta sunt servanda (understandings must be kept). In custom-based law locales, three key components to the formation of an agreement are fundamental: offer and acknowledgment, thought and the expectation to make lawful relations. In Carlill v Carbolic Smoke Ball Company a therapeutic firm promoted that its new ponder medicate, the smoke ball, would cure individuals' influenza, and in the event that it didn't, the purchasers would get £100. Many individuals sued for their £100 when the medication did not work. Dreading liquidation, Carbolic contended the advert was not to be taken as a genuine, legitimately restricting offer. It was an encouragement to treat, simple puffery, a contrivance. Yet, the Court of Appeal held that to a sensible man Carbolic had made a genuine offer, emphasizd by their consoling proclamation, "£1000 is stored". Similarly, individuals had given great thought for the offer by heading off to the "particular burden" of utilizing a flawed item. "Read the commercial how you will, and bend it about as you will", said Lord Justice Lindley, "here is a particular guarantee communicated in dialect which is consummately unmistakable".

"Thought" demonstrates the way that all gatherings to an agreement have traded something of significant worth. Some custom-based law frameworks, including Australia, are moving far from the possibility of thought as a

159 Brown, David, David Farrier, Sandra Egger, Luke McNamara, Alex Steel, Michael Grewcock, and Donna Spears. "Brown, Farrier, Neal and Weisbrot's Criminal Laws: materials and commentary on criminal law and process in New South Wales." (2011).

102 ______prerequisite. The possibility of estoppel or culpa in contrahendo, can be utilized to make commitments amid pre-legally binding transactions. In common law purviews, thought isn't required for an agreement to tie. In France, a conventional contract is said to frame basically on the premise of a "meeting of the brains" or a "simultaneousness of wills". Germany has an uncommon way to deal with contracts, which ties into property law. Their 'deliberation guideline' (Abstraktionsprinzip) implies that the individual commitment of agreement frames independently from the title of property being given. At the point when contracts are negated for reasons unknown (e.g. an auto purchaser is drunk to the point that he needs legitimate ability to contract) the legally binding commitment to pay can be discredited independently from the restrictive title of the auto. Out of line enhancement law, instead of agreement law, is then used to reestablish title to the legitimate proprietor. 160 e) TORT LAW

The "McLibel case" two were engaged with the longest-running case in UK history for distributing a handout condemning McDonald's eateries.

Torts, now and again called delicts, are respectful wrongs. To have acted tortuously, one more likely than not ruptured an obligation to someone else, or encroached some previous legitimate right. A straightforward case may be coincidentally hitting somebody with a cricket ball. Under the law of carelessness, the most widely recognized type of tort, the harmed gathering could possibly assert pay for their wounds from the gathering capable. The standards of carelessness are delineated by Donoghue v Stevenson. A companion of Mrs. Donoghue requested a dark container of ginger brew (expected for the utilization of Mrs. Donoghue) in a bistro in Paisley. Having devoured half of it, Mrs. Donoghue emptied the rest of a tumbler. The breaking down stays of a snail skimmed out. She guaranteed to have experienced stun, fell sick with gastroenteritis and sued the maker for

160 Grundmann, Stefan, and Wolfgang Kerber. "European System of Contract Laws-A Map for Combining the Advantages of Centralised and Decentralised Rule-Making." An Academic Greenpaper on European Contract Law, The Hague/London/New York: Kluwer Law International (2002): 295-342.

103 ______thoughtlessly enabling the drink to be sullied. The House of Lords chose that the maker was obligated for Mrs. Donoghue's ailment. Ruler Atkintook an unmistakably moral approach, and stated, the obligation for carelessness … is no uncertainty in view of an overall population estimation of good wrongdoing for which the guilty party must pay … The decide that you are to love your neighbor progresses toward becoming in law, you should not harm your neighbor; and the legal counselor's inquiry, who is my neighbor? Gets a confined answer. You should take sensible care to maintain a strategic distance from acts or exclusions which you can sensibly predict would probably harm your neighbor. This turned into the reason for the four standards of carelessness: (1) Mr. Stevenson owed Mrs. Donoghue an obligation of care to give safe beverages (2) he ruptured his obligation of care (3) the damage would not have happened but rather for his break and (4) his demonstration was the proximate reason for her mischief. Another case of tort may be a neighbor making too much boisterous clamors with apparatus on his property. Under a disturbance guarantee the clamor could be halted. Torts can likewise include purposeful acts, for example, ambush, battery or trespass. A superior known tort is criticism, which happens, for instance, when a daily paper makes unsupportable assertions that harm a government official's notoriety. More notorious are financial torts, which shape the premise of work law in a few nations by making exchange unions at risk for strikes, when statute does not give resistance. 161 f) PROPERTY LAW

An artistic creation of the South Sea Bubble, one of the world's first historically speaking theories and accidents, prompted strict direction on share exchanging.

Property law represents proprietorship and ownership. Genuine property, once in a while called 'land', alludes to responsibility for and things connected to it. Individual property, alludes to everything else; mobile articles, for example, PCs, autos, gems or immaterial rights, for example, stocks and

161 Van Gerven, Walter. "Bridging the unbridgeable: community and national tort laws after Francovich and Brasserie." International & Comparative Law Quarterly 45, no. 3 (1996): 507-544.

104 ______offers. A privilege in rem is a privilege to a particular bit of property, differentiating to one side in personam which permits remuneration for a misfortune, yet not a specific thing back. Land law shapes the reason for most sorts of property law, and is the most unpredictable. It concerns contracts, rental assention, licenses, agreements, easements and the statutory frameworks for arrive enlistment. Directions on the utilization of individual property fall under protected innovation, organization law, trusts and business law. A case of an essential instance of most property law is Armory v Delamirie A smokestack range's kid discovered a gem encrusted with valuable stones. He took it to a goldsmith to have it esteemed. The goldsmith's understudy taken a gander at it, subtly expelled the stones, told the kid it was worth three halfpence and that he would get it. The kid said he would lean toward the gem back, so the student offered it to him, yet without the stones. The kid sued the goldsmith for his disciple's endeavor to cheat him. Master Chief Justice Pratt decided that despite the fact that the kid couldn't be said to possess the gem, he ought to be viewed as the legitimate attendant ("whoever finds the goods first should be able to keep them") until the point that the first proprietor is found. Indeed, the disciple and the kid both had a privilege of ownership in the gem (a specialized idea, which means confirm that something could have a place with somebody), however the kid's possessory intrigue was viewed as better, since it could be appeared to be first in time. Ownership might be nine tenths of the law, yet not all.

This case is utilized to help the perspective of property in customary law locales, that the individual who can demonstrate the best case to a bit of property, against any challenging gathering, is the proprietor. By differentiate, the exemplary common law way to deal with property, propounded by Friedrich Carl von Savigny, is that it is a correct decent against the world. Commitments, similar to contracts and torts, are conceptualized as rights great between people. The possibility of property raises many further philosophical and political issues. Locke contended that

105 ______our "lives, freedoms and homes" are our property since we possess our bodies and blend our work with our environment. 162 g) EQUITY (LAW) AND TRUST LAW

The Court of Chancery, London, mid nineteenth century

Value is a collection of principles that created in England independently from the "precedent-based law". The custom-based law was controlled by judges and lawyers. The Lord Chancellor then again, as the King's attendant of inner voice, could overrule the judge-made law on the off chance that he thought it evenhanded to do as such. This implied value came to work more through standards than unbending principles. For example, while neither the customary law nor common law frameworks enable individuals to part the possession from the control of one bit of property, value permits this through a course of action known as a 'trust'. 'Trustees' control property, while the 'useful' (or 'evenhanded') responsibility for property is held by individuals known as 'recipients'. Trustees owe obligations to their recipients to take great care of the endowed property. In the early instance of Keech v Sandford a youngster had acquired the rent on a market in Romford, London. Mr. Sandford was depended to care for this property until the point when the youngster developed. Be that as it may, before at that point, the rent lapsed. The landowner had (obviously) told Mr. Sandford that he didn't need the tyke to have the recharged rent. However, the proprietor was cheerful (obviously) to give Mr. Sandford the chance of the rent. Mr. Sandford took it. At the point when the tyke (now Mr. Keech) grew up, he sued Mr. Sandford for the benefit that he had been making by getting the market's rent. Mr. Sandford was intended to be trusted, yet he set himself in a place of irreconcilable circumstance. The Lord Chancellor, Lord King, concurred and requested Mr. Sandford ought to eject his benefits. He composed,

I extremely well observe, if a trustee, on the refusal to reestablish, might have a rent to himself few trust-domains would be recharged … This may appear to be hard, that the trustee is the main individual of all humankind who won't

162 Coombe, Rosemary J. "Objects of property and subjects of politics: Intellectual property laws and democratic dialogue." Tex. L. Rev. 69 (1990): 1853.

106 ______not have the rent; but rather it is exceptionally appropriate that the manage ought to be entirely sought after and not in any way casual.

Of course, Lord King LC was worried that trustees might exploit opportunities to use trust property for themselves instead of looking after it. Business speculators using trusts had just recently caused a stock market crash. Strict duties for trustees made their way into company law and were applied to directors and chief executive officers. Another example of a trustee's duty might be to invest property wisely or sell it. This is especially the case for pension funds, the most important form of trust, where investors are trustees for people's savings until retirement. But trusts can also be set up for charitable purposes, famous examples being the British Museum or the Rockefeller Foundation.163 h) FURTHER DISCIPLINES

Law spreads a long way past the center subjects into for all intents and purposes each region of life. Three classifications are displayed for accommodation; however, the subjects entwine and cover.

Law and society

 Labor law is the investigation of a tripartite modern connection between laborer, manager and exchange union. This includes aggregate haggling control, and the privilege to strike. Singular business law alludes to working environment rights, for example, employer stability, wellbeing and security or a lowest pay permitted by law. 164  Human rights, social liberties and human rights law are vital fields to ensure everybody essential flexibilities and privileges. These are set down in codes, for example, the Universal Declaration of Human Rights, the European Convention on Human Rights (which established the European Court of Human Rights) and the U.S. Bill of Rights. The Treaty of Lisbon

163 Pettit, Philip H. Equity and the Law of Trusts. Oxford University Press, 2012. 164 Moehling, Carolyn M. "State child labor laws and the decline of child labor." Explorations in Economic History 36, no. 1 (1999): 72-106.

107 ______makes the Charter of Fundamental Rights of the European Union lawfully official in all part states aside from Poland and the United Kingdom. 165  Civil method and criminal system concern the principles that courts must take after as a trial and bids continue. Both concern a native's entitlement to a reasonable trial or hearing. 166  Evidence law includes which materials are permissible in courts for a case to be assembled. 167  Immigration law and nationality law concern the privileges of outsiders to live and work in a country express that isn't their own and to gain or lose citizenship. Both additionally include the privilege of refuge and the issue of stateless people. 168  Social security law alludes to the rights individuals need to social protection, for example, jobseekers' remittances or lodging benefits. 169  Family law covers marriage and separation procedures, the privileges of kids and rights to property and cash in case of partition. 170  Transactional law alludes to the act of law concerning business and cash. 171 i) LAW AND COMMERCE  Company law sprang from the law of trusts, on the guideline of isolating responsibility for and control. The law of the cutting-edge organization started with the Joint Stock Companies Act 1856, go in the United Kingdom, which gave speculators a straightforward enrollment

165 Risse-Kappen, Thomas, Stephen C. Ropp, and Kathryn Sikkink, eds. The power of human rights: International norms and domestic change. Vol. 66. Cambridge University Press, 1999. 166 Subrin, Stephen N. "How Equity Conquered Common Law: The Federal Rules of Civil Procedure in Historical Perspective." University of Pennsylvania Law Review 135, no. 4 (1987): 909-1002. 167 McCormick, Charles Tilford. Handbook of the Law of Evidence. West Pub. Co., 1954. 168 Fried, Elmer. "Immigration and nationality law." Ann. Surv. Am. L. (1962): 649. 169 Collier, David, and Richard E. Messick. "Prerequisites versus diffusion: Testing alternative explanations of social security adoption." American political science review 69, no. 4 (1975): 1299-1315. 170 Vernier, Chester Garfield, Fred Ames Weller, Benjamin Cushing Duniway, John Bingham Hurlbut, Edwin Perry Churchill, John Rex Dibble, and Richard Anthony Frank. American Family Laws: Incompetents and dependents. Vol. 5. Stanford University Press, 1938. 171 Stokols, Daniel, and Sally A. Shumaker. "People in places: A transactional view of settings." Cognition, social behavior, and the environment (1981): 441-488.

108 ______method to increase restricted obligation under the different legitimate identity of the partnership.  Commercial law covers complex contract and property law. The law of office, protection law, bills of trade, indebtedness and insolvency law and deals law are immeasurably critical, and follow back to the medieval Lex Mercatoria. The UK Sale of Goods Act 1979 and the US Uniform Commercial Code are cases of arranged customary law business standards.  Admiralty law and the Law of the Sea lay a fundamental system with the expectation of complimentary exchange and business over the world's seas and oceans, where outside of a nation's zone of control. Transportation organizations work through conventional standards of business law, summed up for a worldwide market. Chief of naval operations' office law additionally incorporates specific issues, for example, rescue, oceanic liens, and wounds to travelers.  Intellectual property law goes for shielding makers and different makers of scholarly merchandise and ventures. These are legitimate rights (copyrights, trademarks, licenses, and related rights) which result from scholarly movement in the modern, abstract and creative fields.  Restitution manages the recuperation of another person's pick up, as opposed to pay for one's own misfortune.  Unjust advancement When somebody has been shamefully improved (or there is a "nonattendance of premise" for an exchange) to another's detriment, this occasion produces the privilege to compensation to turn around that pick up.  Space law is a generally new field managing parts of global law with respect to human exercises in Earth circle and space. While at first tending to space relations of nations through arrangements, progressively it is tending to regions, for example, space commercialization, property, obligation, and different issues. 172

172 Millett, Peter J. "Equity’s Place in the Law of Commerce’ (1998)." LQR 114: 214.

109 ______j) LAW AND REGULATION

The New York Stock Exchange exchanging floor after the Wall Street Crash of 1929, preceding harder keeping money direction was presented

 Tax law includes controls that worry esteem included expense, corporate duty, and salary assess.  Banking law and budgetary direction set least models on the measures of capital banks must hold, and principles about best practice for venture. This is to guarantee against the danger of financial emergencies, for example, the Wall Street Crash of 1929.  Regulation manages the arrangement of open administrations and utilities. Water law is one illustration. Particularly since privatization wound up noticeably well-known and removed administration of administrations from open law, privately owned businesses doing the employments already controlled by government have been bound by differing degrees of social obligation. Vitality, gas, telecoms and water are directed enterprises in most OECD nations.  Competition law, known in the U.S. as antitrust law, is an advancing field that follows as far back as Roman announcements against value settling and the English limitation of exchange teaching. Present day rivalry law gets from the U.S. hostile to cartel and against restraining infrastructure statutes (the Sherman Act and Clayton Act) of the turn of the twentieth century. It is utilized to control organizations who endeavor to utilize their financial impact to misshape showcase costs to the detriment of buyer welfare.  Consumer law could incorporate anything from controls on out of line legally binding terms and provisions to mandates on aircraft stuff protection.  Environmental law is progressively vital, particularly in light of the Kyoto Protocol and the potential peril of environmental change. Ecological assurance additionally serves to punish polluters inside residential lawful frame173

173 Abraham, Kenneth S. Insurance Law and Regulation: cases and materials. Foundation Press, 1995.

110 ______Obviously, Lord King LC was stressed that trustees may abuse chances to utilize trust property for themselves as opposed to taking care of it. Business examiners utilizing trusts had quite recently as of late caused a securities exchange crash. Strict obligations for trustees advanced into organization law and were connected to chiefs and CEOs. Another case of a trustee's obligation may be to contribute property astutely or offer it. This is particularly the case for benefits supports, the most vital type of trust, where speculators are trustees for individuals' investment funds until retirement. Be that as it may, trusts can likewise be set up for altruistic purposes, celebrated illustrations being the British Museum or the Rockefeller Foundation.

2.3. FRANCHISE BUSINESS LAW IN PAKISTAN & ITS IMPLICATIONS: A CRITICAL STUDY 2.3.1. FRANCHISING LAW IN PAKISTAN (GERNAL) There is no specific law, rule and regulation in Pakistan about franchise business or franchising. But there are some rules and regulations which are being observed in this business.174 Actually, in this business two parties are involved one is called owner and technically called Franchisor and the other party is called the Franchisee. The franchiser being the owner have the right to grant or sell the business, trade name and trade mark also to another party for receiving of some money and the other party that is called the Franchisee to whom these rights were granted from franchiser is bound to obey the terms and conditions made in the agreements.175 So, in a simple terms Franchising is a kind of business and arrangements in which the owner sells and grants his business and trademark etc. After making this agreement the Franchisee has the full powers to use the rights and market the goods and all other services under instructions of Franchisor. He can also use the rights to run his business by using the trade-name, service-marks and also trade-marks for a time that they have fixed in their agreement. In this way, the Franchisee not having the power to start his business from the zero-ground level, he has to pay a fee to the

174 Mendelsohn, Martin, and Clive Freedman. Franchising law. Richmond Law & Tax, 2004. 175 Omar, Ogenyi Ejye. "Franchising agreements in new car retailing: An empirical investigation." Service Industries Journal 18, no. 2 (1998): 144-160.

111 ______Franchisor that is called an up-front fee.176 And in addition to this fee he has also bound to pay some percentage of sales of every item fixed in the agreement.

Each country, each territory and each state have their own rules, regulation, information and laws regarding a relating this business with the help of these rules the state governs this business. 177So, this business may be defined as such type of business in which a person grants a license to another person and this type of business is called Business Format Franchising.178 In this type following terms and conditions have been observed:

 A franchiser permits and allows the franchisee to carry on the business with full powers and rights given by the franchisor in the form of no- how under the franchisor a brand and trade-mark etc. as an independent business in any tertiary place where he (Franchisee) thinks is better.  Rule allows the franchisor this right that he must exercise the using of power to control over the manners and methods according to which the franchisee is running the franchised business.  The rule also makes bound or obliges the franchisor to provide and grants to the franchisee of ongoing support in running his business successfully.179 In common sense, this business is considered as commercial agreement. In this commercial matter, the franchisee is required to pay the sums to the franchisor periodically which means till the period that they have fixed in their agreement and when he pays the fee/money in consideration in this matter of business or goods or services, he is allowed to exercise freely and independently provided by the franchisor. 180

176 Brickley, James A. "Royalty rates and upfront fees in share contracts: evidence from franchising." Journal of Law, Economics, and Organization 18, no. 2 (2002): 511-535. 177 Garner, W. Michael. Franchise and Distribution Law and Practice. Thomson/West, 2003. 178 Sen, Kabir C. "The use of initial fees and royalties in business‐format franchising." Managerial and decision Economics 14, no. 2 (1993): 175-190. 179 Kaufmann, Patrick J., and Sevgin Eroglu. "Standardization and adaptation in business format franchising." Journal of Business Venturing 14, no. 1 (1999): 69-85. 180 Bercovitz, Janet. "An analysis of the contract provisions in business-format franchise agreements." Documento de trabajo, Duke University (2000).

112 ______Actually, this business is an agreement in which the owner gives rights or licenses operator (franchisee) to operate the business using the franchisor. The franchisor has generally hard and strict rules and standard for suitable and favorable location and place for the business. And also, to conduct the business and to sell the goods and services and also to promote, design and advisable construction of the business location.181

In this business, lenders (who give money) have also interest to finance (to help financially) to those people are running reputable business and established franchising. They do not to open an unestablished and unproven business. They do not want to be the entrepreneur. Although there is a great risk in this condition but good services and good management minimizes this risky situation and make a man able to run and manage a business without any training. So, if you want and think about franchising you should examine and investigate following things carefully,

 Original &specific costs  Availability of franchising  Estimate of expected earnings  Duration of agreement 182 2.3.2. FRANCHISE DOCUMENT DISCLOURE (FDD)/FRANCHISE BUSINESS AGREEMENT

This agreement is also known as FDD.183 This is very important document for the franchisee and the franchisor. It binds both the parties to do their duties and also be responsible for their rights and obligations. When both the parties wanted to start this business, their right and agreement and also attach this agreement to the disclosure and after this they starting observing their duties and both the party sign this agreement mentioning the duration. When the duration is over both the parties renewed it by the help of the

181 Tuunanen, Mika, and Kimmo Hyrsky. "Entrepreneurial paradoxes in business format franchising: an empirical survey of Finnish franchisees." International Small Business Journal 19, no. 4 (2001): 47-62. 182 Lindblom, Arto, and Henrikki Tikkanen. "Knowledge creation and business format franchising." Management Decision 48, no. 2 (2010): 179-188. 183 Internicola, Charles. "FDD Earnings Claims: A General Guide for Franchisors and Franchisees." (2011).

113 ______lawyer who is expert in Franchise business matters. This business cannot be started without this agreement. So, the Franchise agreement is very important and corner for both the parties.

All the terms and conditions will be written in this agreement and rights and obligation of Franchisor and other party that is Franchisee) explained. It is also mentioned the system of training and the way of supporting the franchisor as the management of the products etc. The duration and the renewal method also mentioned. Up-Front fee, services fee, trade-marks, signs, trade-names, royalty and all other things has been explained and mentioned in detail in this agreement.184 So, the key and important items of this documents and agreements are as follows

 The personality and business foundation of key work force subsidiary with the franchisor or franchisee agents.  Any earlier suit activity any insolvency history.  Franchisee's underlying franchisee expense or other introductory installment to start the operation, for example, administrations charges, preparing expenses, promoting expenses, sovereignties.  Any responsibility of a franchisee or buy or rent from assigned sources.  Franchisee's foremost commitments.  Obligations of the franchiser; supervision; help; administrations; Exclusive region or domain.  Trade-marks, benefit marks, exchange names, logos and business images; Patents and copyrights.  Any duty of the franchisee to by and by take part in the genuine operation of the establishment business.  Renewal, end, exchange and debate determination.  Statistical data and posting of other existing franchisee and inspected money related articulations.  Background of franchiser around here.  Registration of the business.

184 Knight, Russell M. "Franchising from the franchisor and franchisee points of view." Journal of small business management 24 (1986): 8.

114 ______ Information about prosecution.  Details about chapter 11.  Information about freedom of starting charge of franchiser.  Details of administration charge, preparing expense and every other expense.  Any duty franchisee (to buy and to rent).  Detail about foremost commitment of franchiser.  Detail about particular region and domain.  Obligation about supervision.  Obligation about help.  Information about trademarks and exchange names.  Detail of administration name and logos.  Information about business images.  Detail of copyrights and licenses.  Any duty of franchisee.  Detail of recharging and end.  Detail of transfer.  Detail about solution of dispute.  Audit copy of finance and detailed statements.185

There is no specific law, rule and regulation in Pakistan about franchise business or franchising. But there are some rules and regulations which are being observed in this business.

There is no model or standard form for franchise agreement. Terms and conditions are different in different agreements, so forms of agreements in different companies and agencies are different. But in spite of the deficiency mentioned above, it is necessary that at least three fundamental goals and basic objectives should be mentioned in the agreement.

 Terms and conditions should be cleared on which they agreed upon, because there no special law about litigation.186

185 Wells, Gerald C., and Dennis E. Wieczorek. "A road map to the new FTC franchise rule." Franchise LJ 27 (2007): 105. 186 Graves, E. G., and B. S. Gillum. "Summary." National Hospital Discharge Survey: Advance Data from Vital and Health Statistics 199 (1989): 1-12.

115 ______ There should protection of the benefits the parties and explanation about intellectual property of franchisor.187  It is necessary to mention and set out the rules, regulations and terms clearly so that it should be easy to observe.188 2.3.3.TERMS AND CONDITIONS We know that there is no specific legislation or regulation for franchise business agreement. So, for this reason, the terms and conditions should be in so clear and comprehensive way that these should be considered; control room; or; engine room; it means so that when any party breaks law, they will be able to look their promises in the agreement.189 a) PROMISIES FOR FRANCHISEE  training his staff for himself  supply of goods  supply of services  the owner is responsible for advertising,  responsible for marketing  responsible for promotions  responsible for assisting him in locating the proper place  to assist to acquire property  to help to manage set up in this line  to assist to enhance system of business  responsible to develop it  to assist to improve it  support should be given in accounting 190 b) OBLIGATIONS OF A FRANCHISEE/WISHES OR PROMISES OF A FRANCHISER  to monitor the role and performance of franchisee  to get him rid of unfair competition

187 Lee, Jeong-Yeon, and Edwin Mansfield. "Intellectual property protection and US foreign direct investment." The review of Economics and Statistics (1996): 181-186. 188 Ordish, R. "New Franchising Rules; A Step in the Right Direction." China Business Review 33, no. 6 (2006): 32-33. 189 Bercovitz, Janet. "An analysis of the contract provisions in business-format franchise agreements." Documento de trabajo, Duke University (2000). 190 Tikoo, Surinder. "Franchiser influence strategy use and franchisee experience and dependence." Journal of retailing 78, no. 3 (2002): 183-192.

116 ______ to manage protection for his intellectual property  to pressurize and to impose restrictions on franchisee to use the power of exercising the rights given to him by the franchiser  to impose strictly also some obligations191 c) THE INTELLECTUAL PROPERTY (OF FRANCHISOR) The types and nature of this property are as follows;  Trademarks  Trade name  Goodwill  Copyright  Confidential and secret information  Basics and know-how192

So, the franchisee should try his best to protect these rights from loss infringement.

191 Rau, Lee A. "Implied obligations in franchising: beyond terminations." The Business Lawyer (1992): 1053-1081. 192 Cornish, W. R., David Llewelyn, and T. Aplin. Intellectual Property: Patents, Copyrights, Trademarks and Allied Rights (4th). London: Sweet and Maxwell, 1999.

117 ______2.3.4.DEDUCTION

After the detail discussion about the franchising laws in Pakistan and its complications, we are bound to care about all the franchise acts and its sections also, we should also consider and keep in mind all the small and big rules and regulation while writing the franchise agreement, terms and conditions, franchisors promises, duty of the franchisor, responsibility of the franchisor, duty and obligations of the franchisee, protection of the rights, paying of the fee, rule of the termination, rules and laws of the renewal and all such terms and condition of intellectual property that is called especially the property of franchisor, we shall try honestly and considerably to fulfil all the terms and conditions of the act of franchise and act of the laws and acts of the state also. So that we may enjoy and get profit to this satisfaction of our heart in the country.

2.3.5.LEGAL ISSUES AND IMPLICATIONS IN FRANCHISING IN PAKISTAN_ CRITICAL STUDY a) PROEM After a deep study of rules, regulations and laws about franchising, some important issues and implications would be discussed facing in Pakistan. There is no special and specific law about franchising in Pakistan to govern and solve issues regarding franchising. But in spite of this, the supreme court of Pakistan has declared and endorsed a definition of the business of franchising as;

“A privilege Granted or Solid Such as to Use A name or To Sell Product or Service the Right Given by A Manufacturer or Supplier to A Retailer to Use His Product and Name on Terms and Conditions Mutually Agreed Upon. In its Simplest Terms a Franchise Is a License from Owner of Trademark or Trade name permitting Another to Sell A product or to Serve Under That Name or Mark Precisely This Definition Is More Akin to A license rather Than an Agency.”193

193 Cohen, Morris L., Robert C. Berring, and Kent C. Olson. How to find the law. St. Paul: West, 1989.

118 ______So, the above-mentioned definition is basically borrowed and taken from Black, law dictionary. It is not suitable to use implement in the regime of franchise business in sense of regulation and in way of enablement.

Therefore, in connection with deal and transaction of franchise, there is a CONTRACT LAW also known as Contract Act of 1872. So, the contractual deals and arrangements between the parties are tackled and run by this law of contract.194 The rights and liabilities of the parties are fixed. So, I am able to say now that all the activities about franchise business are handled and observed by contract law by giving and implementing strict instructions and are also being governed regularly. b) LEGAL ISSUES AND IMPLICATIONS i. THE FRANCHISOR AND ANY GUARDIANS, FORERUNNERS, AND SUBSIDIARIES

This is imperative that manage, directions and laws demonstrate nothing about this area so this is huge and awesome issue and suggestion in law about this. In this way, point by point data is required in this line in the light of laws and direction. ii. BUSINESS EXPERIENCE

This is likewise huge issue and inadequacy in law demonstrating nothing about the experience. Along these lines, the legislature should focus on this site when an assention is marked definite experience authentication ought to be given. Since without the experience business may slump effectively. iii. LITIGATION

It is likewise not said about the prosecution procedure. It is required likewise in this line law and directions should nitty gritty process about looking for the assistance if there should be an occurrence of prosecution.

194 Rubin, Paul H. "The Theory of the Firm and the Structure of the Franchise Contract." The Journal of law and economics 21, no. 1 (1978): 223-233.

119 ______iv. BANKRUPTCY

Chapter 11 is enormous disappointment of the business. Be that as it may, there is no data and directions about this state of the business. It has not been guided what move ought to be made against the proprietor or franchisor. It is likewise not said here in law that what a specialist should make strides in this circumstance. v. INITIAL EXPENSES

There is no tenets and laws about the underlying charges. It is the colossal imperfection of law. Along these lines, law ought to be made to settle and to finish the underlying charge in all the establishment business. vi. OTHER CHARGES

There is no law about charges. Along these lines, it is extremely important to define law about procedure of gathering every other expense. vii. ESTIMATED STARTING VENTURE

This is additionally critical report. Be that as it may, there no detail and data in law. It is additionally an awesome need of principles directions about this record. viii. RESTRICTIONS ON WELLSPRINGS OF ITEMS AND ADMINISTRATIONS

There are no subtle elements in law that in what manner can a franchisor force limitations items. How might he stop administrations? This is likewise huge issue and blemish of law. ix. FRANCHISEE'S COMMITMENTS

Here law is additionally quiet. No detail is composed in law. No clarification is given in law. No technique and no procedure have been talked about this area. In this way, law is required direly to clarify all things.

120 ______x. FINANCING

This is essential thing. In this manner, guidelines and controls ought to be made to expand all subtle elements made to expound all points of interest. xi. FRANCHISOR'S HELP, PROMOTING, PC FRAMEWORKS, AND PREPARING

There is no detail that how a franchisor help, the franchisee and how he can bolster in promoting and in giving preparing too. Along these lines, need of law and directions critically expected to this side too. xii. TERRITORY

It is likewise to recognize the region and place and range additionally yet there is no lead without this clarification. Along these lines, there are such a significant number of complexities. Consequently, help of law is required to expel and tackle this extraordinary issue. xiii. TRADEMARKS

It is likewise huge issue in lawful issues this thing is critical and extremely profitable in establishment business. Be that as it may, it’s absolutely impossible composed, no technique is clarified and no procedure is given to utilize the exchange stamps in detail. xiv. PATENTS, COPYRIGHTS, AND EXCLUSIVE DATA

This area is likewise imperative yet law is additionally noiseless in this segment. It's not possible for anyone to comprehend the way, the procedure and the technique for utilizing these things. Along these lines, law and guidelines should give here as quickly as time permits. xv. OBLIGATION TO TAKE AN INTEREST IN THE GENUINE OPERATION OF THE ESTABLISHMENT BUSINESS

It is imperative area. The franchisee ought not realize that how might he take an interest in the real operation of the establishment business. Notwithstanding this there is no consistent law about this area.

121 ______xvi. RESTRICTIONS ON WHAT THE FRANCHISEE MAY OFFER

There ought to be given detail in the light if law when the gatherings are consenting to the arrangement that on what organizes the franchisor force confinements on franchisee. On what reasons, he can stop franchisee to offer the items. xvii. RENEWAL, END, EXCHANGE, AND DEBATE DETERMINATION

This is the essential data and thing of an assention of an establishment that when a diversifying ought to have scratched off and the method for knowing it moreover. Never the less, law doesn’t give any detail to clarify it. xviii. PUBLIC FIGURES

It is the critical thing of the understanding. Essential open figures ought to be said. Points of interest and vital data ought to likewise be given so every individual may see effectively. In any case, there is no detail in law and controls about this area too. That is the reason it is viewed as an incredible issue and issue in this field. xix. FINANCIAL EXECUTION PORTRAYALS

It is exceptionally important to clarify the execution fiscally in every one of the exercises of a franchisee and furthermore franchisor. Be that as it may, there is given no detail and no contentions comparably in this segment moreover. xx. OUTLETS AND FRANCHISEE DATA

In assertions, the data about the outlets ought to be given. Notwithstanding this every one of the insights about diversifying exercises, if administration and its part ought to be talked about in detail. It is additionally given detail in the light or decide that without every one of the points of interest. What should a man including in this business can get help for the management and law.

122 ______

xxi. FINANCIAL ARTICULATIONS

It is exceptionally essential for each franchisor to give and connect every one of the announcements about the money related issues yearly, month to month of fortnightly as said and settled the assention. In the event that a man does not do as such what can a law can do hurt him. There is no detail is law. That is the reason the franchisor and proprietor of the considerable number of organizations drive their workers I mean franchisee to continue doing their movement without addressing. Presently it relies on to state and ask that what should a law ought to improve the situation this circumstance. xxii. CONTRACTS

All the insight about the agreements ought to be composed. Terms and condition ought to be talked about in detail. Rights and commitments ought to be clarified and the procedure ought to be given to take activities against any gathering who breaks the terms and conditions. In any case, there is no such detail in law to do as such. xxiii. RECEIPTS

Along these lines, receipt is imperative thing of the establishment business understanding. Every one of the receipts of all the managing ought to be overseen. Correspondingly, a record of the considerable number of receipts of the dealings might be littler of might be greater ought to be outfitted and worked too. It is additionally ought to be composed that if a man does not keep up the record the receipts of the managing he ought to be rebuffed lawfully. Be that as it may, unfortunately law, govern and control are additionally noiseless here in this area too. Hence, there are such a large number of challenges and obstacles for the general population how are engaged with this business and how need to get data about this business too.

All legal issues that we have discussed in above lines that have their exact content and fixed format. All are great issues and problems in Pakistan

123 ______especially in franchising field’s law. The federal trade commission (FTC) has promulgated the fixed rules and laws about the entire big problem facing in this field a franchising especially in Pakistan. No doubt all the legal issues that we have disused in detail in the above said paragraph are greatly considered very daunting and harmful to all the persons and types of franchising in Pakistan while signing the deals, but still no solution has been searched out for the protection of the people and all the persons those want to adopt this business and field.

2.3.6.IS FRANCHISE AN AGENCY OR A LICENSE?

After a long discussion upon the legal issues problems and implications about in the field of franchising, there a so many questions to answer. From the list of long questions some important questions are the following. It is very necessary for us to answer to these questions. It is very important to solve the issues lying in these questions. It is very advisable to decipher the enigma of these questions. It is the need of time to explain the ambiguities in these questions. What is question? The question is this either the franchise is an agency or this is a license? So, I shall try my best to explain, elaborate and to dilate upon the questions mentioned above. a) IS FRANCHISE AN AGENCY?

When we study critically the laws of Pakistan’s courts, we come to know that a franchise declared on some places in the nature of meaning and agency and on the other side franchisor is declared as a principal. But the Supreme Court has given his decision in the case about BOLAN BEVGRAGES (PVT) Limited vs. PEPSI CO-Inc. & others that the franchise is not an agent because agent is a person who has been employed by the order of principal to do anything with the third party. And the agent is responsible for his every action and deal before the principal under the section 182 of the Contract Act of Pakistan.195

195 Hennink, Monique, and Steve Clements. "The impact of franchised family planning clinics in poor urban areas of Pakistan." Studies in family planning36, no. 1 (2005): 33-44.

124 ______In addition to this section mentioned above there a more some sections which declared the franchise a license not an agency for example section 211 of the Contract Act and section 23 and section 216. Section 217 & 218 of the Contract Act clears and explain this point that in the light and context of law, primacies, that franchise is not working in all the deals or transaction in franchise like an agency.196 b) IS FRANCHISE A LICENSE?

The Supreme Court explained in all the sections of Contract Act of Pakistan law that a franchise is not an agency but it is the meaning of this a very akin to the sense license and rather than the sense and nature of an agency. Because a franchisor that is called a principal gives a right to sell the products and to use the name of trade-marks and trade-names of the franchisor freely in any area fixed in the agreement. Precisely it appears that the definition of franchise in the sense of meaning and nature in nearest the license than an agency.197

2.3.7. A CRITICAL APPRAISAL

Now it is our duty to remove all the implications and ambiguities lying between a franchise and franchisee in the light of laws. All the agreements, terms and conditions, nature of deed and type of franchise should be explained clearly under the all the section of Pakistan Jurisprudence. So that every person may be cleared and ensured from the core of his heart that franchise is just like an agency or a license.

The circular of State Bank of Pakistan (SBP) that minimizes and lemmatizes the power and capacity of the companies of Pakistan to transfer and redaction the royalty fee that is out of the total fee the maximum ratio is only 5%. But in my opinion according to the section 4 of the Protection of Economic Reforms Act, PERA, 1992, it is invalid. So, this is my request to

196 Lafontaine, Francine. "Agency theory and franchising: some empirical results." The RAND Journal of Economics (1992): 263-283. 197 Johnson, Derek. Media franchising: Creative license and collaboration in the culture industries. NYU Press, 2013.

125 ______the government of Pakistan to clear and explain to this issue and problem that in the light of all sections, what is right and what is wrong? 198

2.4. FRANCHISING LAWS PROCEDURE IN PAKISTAN, MALAYSIA AND DUBAI-A DESCRIPTIVE STUDY

2.4.1 FRANCHISING LAWS PROCEDURE IN PAKISTAN

It has been explained comprehensively in section 2.3 of this chapter.

2.4.2 FRANCHISING LAWS IN MALAYSIA a) EXORDIUM

Franchise business as we have discussed in detail in Pakistan is a very important and very beneficial business in all over the world. Similarly, this business has been developed, spread and promoted on large scale in the country of Malaysia. Many companies are trying their best to develop and increase this business in this country. They are also trying to increase their production and capability to give more and more services in this country. They are also trying to strengthen the chain of this business on both the line, on side vertically and on the other side horizontally. In this way, there are so many options in this business in this country to choose and to start.199

Franchising is such type of business which is creating so many opportunities for the Malaysian people who want to start small setup and small start-up (Franchisee). They are allowed to benefit themselves from the guidance and experience of the big companies that are called (Franchisor). The franchising law of Malaysia allows the franchisee to get maximum profits a benefit from the reputation of the trade-name and trade-marks also of the franchisors business locally, regionally and internationally. But the law imposes some liability and restrictions upon the franchisee and also upon the franchisors

198 Auerbach, Alan J., and Joel Slemrod. "The economic effects of the Tax Reform Act of 1986." Journal of Economic Literature 35, no. 2 (1997): 589-632. 199 Abdullah, Nurdianawati Irwani, and Siti Salwani Razali. Commercial law in Malaysia. Prentice Hall, 2008.

126 ______on which they bound to act upon according to instructions and system of the law everywhere and every place.200

Before the implementation of the franchise act 1998 (the franchise act) on October8, 1998, This business was governed and observed by contractual principles. In addition to this where in the absence of the contractual law about the guidance of both the parties, they have been given free hand to fix their terms and conditions according to their own free will. 201On the other hand, franchise act is very active to regulate the franchising system and management in the sector of industry and all others sectors also. In addition to regulating the system in this business in all the fields the franchise act also controls firmly the terms and conditions made by both the parties. The law also makes them bound to register deeds and agreements in the office of the governments. So, after registering their deeds and agreements in the office of government they are bound to obey all the terms and conditions written in the agreement.202 On the other the government is also responsible after registration to watch, control and protect both the parties from every respect. In this way, this business is running regularly in Malaysia and promoting day by day. The attraction for the foreign franchisor is also being observed in the country also.203 b) ELEMENTS OF A FRANHCISE

According to the franchise act there are so important elements of the franchise in Malaysia that are very important for the implementation of all the terms and conditions in this business. That are following:

200 Morshidi, Sirat. "Transnational higher education in Malaysia: Balancing benefits and concerns through regulations." RIHE International Publication Series 10 (2006): 109-126. 201 Spencer, Elizabeth Crawford. The regulation of franchising in the new global economy. Edward Elgar Publishing, 2010. 202 Chen Goh, Pek, and Kwee Pheng Lim. "Disclosing intellectual capital in company annual reports: Evidence from Malaysia." Journal of Intellectual Capital 5, no. 3 (2004): 500-510. 203 Hoffman, Richard C., and John F. Preble. "Global franchising: Current status and future challenges." Journal of Services Marketing 18, no. 2 (2004): 101-113.

127 ______ THE FRANCHISEE

 THE FRANCHISOR

 CONTROL OF THE FRANCHISOR

 THE PROMISES OF FRANCHISOR

 THE PAYING OF THE FEE OF THE FRANCHISEE

 THE FRANCHISEE MANAGE HIS BUSINESS SEPARATELY FROM THE FRANCHISOR 204

Actually, and generally that the crisp and gist of a franchise is the granting and providing of a license from a party to another party for the purpose of running and operating of the business according guidance of a booklet about all the business system and according to the modus operandi.

 SYSTEM AND WAY OF REGISTRATION/ LEGAL

PROCEDURE OF FRANCHISING 205

According to act, there is a difference between a way of registration and a great distinction between the local and foreign franchisor. The way and process of registration of both the franchisors is given below:

 FOREIGN FRANCHISOR

According to the law, the foreign franchisor must get the registration of franchises in the office registrar and approval also before starting a franchise in Malaysia. The way of getting approval is this that foreign franchisor goes into the office of a registrar and briefs about his business, terms and conditions and promotion and management also.

After getting approval from the registrar office, the foreign franchisor is allowed to take some steps for his business in Malaysia. Now he is allowed also to write an agreements, terms and conditions and all other related things

204 Forward, Jim, and Christina Fulop. "Elements of a franchise: the experiences of established firms." Service Industries Journal 13, no. 4 (1993): 159-161. 205 Mok, Ka Ho. "11 Regional responses to globalization challenges: the assertion of soft power and changing university governance in Singapore, Hong Kong and Malaysia." Handbook on globalization and higher education (2011): 179.

128 ______about his business. But after writing all these things he is bound to send a copy of the agreement to the office of registrar. After this the registrar office starts to watch and control all the activities and movements about this business everywhere.

There is also a condition that if the foreign franchisor just like a master franchisee then this is another type for this business that the master franchisee is also bound to get registration first and approval from the office registrar. 206

 LOCAL OR MALAYSIAN FRANCHISOR

The local franchisor is also bound to register his business or company in the office of registrar at every cost. The franchise act in this way is clear that it is not necessary for the local franchisor to get approval from the office of registrar just like a foreign franchisor. But he is bound only to register his business in the office of the registrar at every cost and it also necessary for him that maximum limit or a business of completion is maximum three years. After this he is bound to renew his registration of business.

After the approval both the parties local and foreign are bound to apply for the registration of the trade-mark and trade-name also according to the Trade-Marks Act 1976. After getting this, the franchisee or other parties to get or allowed to benefit themselves from the goodwill and trade-mark of the franchisor.

The franchise act also bounds them, if any party wishes or wants to distribute anything or to publish any advertisement, to send copy to the office of registrar at least five days before the date of publication. In this way, the registrar office watches carefully of the advertisement and then give sanction. 207

206 Yean, Tham Siew, and Andrew Kam Jia Yi. "Trade and investment linkages in higher education services in Malaysia." UNESCAP Asia-Pacific Research and Training Network on Trade, Working Paper Series 43 (2007). 207 Hamid, A. B., Mohd Hassan Mohd Othman, Rozita Selamat, and Norhamimah Mastor. "An encouraging factor for entrepreneur in franchising: A Malaysia Experience." In Dalam

129 ______ DICISION OF THE REGISTRAR

If a registrar cancels or terminates the registration of any party, the act gives the right of the parties to go into the office of minister of entrepreneurial and cooperative development within the fourteen days from the date of the service of the notice. (The minister will decide maximum in one month). 208

 FRENCHISE AGREEMENT

The franchise act in Malaysia make the parties to write certain and important terms and condition in the agreement of franchise. It is also written in the agreement that if any will not comply the terms and conditions the agreement automatically will be null and void. The very first and very foremost condition is this that all the terms and conditions duties and responsibilities should be written in detail in the agreement. That is called the franchise agreement. It is also very necessary that the agreement should contain and include some important things at every cost such as the name, description of the product, kind of business, kind of agreement, territorial rights that was granted to the franchisee, a fee, promotion fee, the franchise fee, the royalty and the payment that is payable from the side of franchisee should also be reflected in the agreement. At the end of the agreement this act also requires of the inclusion of all type about the particulars and also all type of assistance that will be provided from the franchisor, the duration of the agreement, in addition to the terms, renewal condition, rule of termination and laws of expiration of the agreement should be written in detail. It is also very necessary that the agreement and a detailed copy of disclosure document should provide to the franchisee before ten days after the entrance into the franchise agreement of the franchisee. All these requirements mention the paternalistic approach from the side of franchise act. This franchise act gives the right to the franchisee to terminate this agreement and gives seven working days at least for thinking and deciding for the termination of the

Proceeding of 16 th Annual Conference of Small Enterprise Association of Australia and New Zealand, Ballarat, Australia, vol. 28. 2003. 208Harif, Mohd Amy Azhar Hj Mohd, Chad Perry, Colin F. McCosker, and Norsyema Hani Hj Mahad Noor. "The structure of a franchise disclosure document for a new franchise system in Malaysia." (2001): 1-9.

130 ______agreement and this period of seven working days is called “A cooling off Period.” After termination of this agreement he can claim for the refund of his money that was paid to the franchisor. But on the other side the franchisor is also entitled to discount and retain some amount at the name reasonable expenses that were spent for the preparation of this franchise agreement.209

 TERMS AND TERMINATION

It is very mandatory according to the franchise agreement that at least agreement is written for the 5 years at least. It is also extended after completing this period successfully by the willingness of the franchisee if the franchisee is not willing for the extension the franchisor cannot bound him to do so. In this situation, some expenses will bear the franchisee and some expenditures will bear the franchisor

In the prospect of termination, the franchisee often reluctant because he has the fear in his mind he will to bear all the expenses and loses at every cost. But the franchise act gives the right to the franchisee to use this right without any fear. But the act also bounds the franchisee to not disclose the confidential secrets about the agreement. No doubt the agreement will come to an end if any of the two mutually agree for the termination. But in case of differences the court will decide. 210

 CONFIDENTIONL INFORMATION

As a consequence of the termination of the franchise, this act permits the franchisor to protect all his interests from the franchisee and also from his employees to continue this process. The trade secrets are very important thing for both the parties these things should not be leaked out in public.

However, these legal restrictions also provide a very little safety for the franchisor about this confidential information and about trade secrets. This information should be away from the reach of public domain. When such

209 Nasra, Rasha, and M. Tina Dacin. "Institutional arrangements and international entrepreneurship: the state as institutional entrepreneur." Entrepreneurship Theory and Practice 34, no. 3 (2010): 583-609. 210 Maness, Robert. "Incomplete contracts and the choice between vertical integration and franchising." Journal of Economic Behavior & Organization31, no. 1 (1996): 101-115.

131 ______information about the company is leaked out one time. The nature of the business is lost his value. So, that is why essential material, secret information and also secret formula, for example “K.F.C secret recipe” or “the Coca Kola formula” will be supplied to all the franchisee as a readymade thing.

In this situation if the franchisor thinks it necessary to give the license of these confidential information to other party that is called franchisee for example technical information, the methodology of the system and also know how, then in this situation the franchisor make the franchisee responsible to keep secret about all such documents and information in secrets. In this entire situation in connection with the intellectual property right especially concerning the improvements, enhancement and developments, all the expenses and money will be spent from the side of the franchisor. 211

 WAY OF CONDUCT OF SUCH BUSINESS

The idea of “Cloning” is the fundamental basis of the franchising. There are both kinds of consequences in this situation such as positive and negative consequences. On the side of positive line, it helps the franchisor to keep the standard on uniform and equal level of the business and all kind of product. He is also bound to strengthen the quality of brand of his business. However, in other side that is called negative side that the franchisor. When the other franchise is available in the competition and the franchisees are supposed to compete with such franchisors and they are also conversant and acquainted with the business know how in that area then the franchisor will bear the expenses to prepare their franchisees and employs to defeat other competitors (franchisor).

But fortunately, the franchise act demands the franchisee and all its employs to act upon the non-competition covenants in the time of franchise agreement and also, they are bound to continue this practice of act upon the

211 Roberts, Brian J., and James T. Walters. "Secure placement of confidential information on a circulated blank ticket." U.S. Patent 4,677,553, issued June 30, 1987.

132 ______terms for 2 years after the termination and expiration of such franchise agreement, according to the Malaysian contacts act 1950. 212

 PAYMENT OF ROYALTY

After the writing of the agreement the franchisee is bound to pay all type of fee such as franchise fee, royalty and promotion fee at every cost to the franchisor. But according to the Malaysian franchise act all these fees should be reflected in the kind of amounts in the disclosure documents that is registered in the office from both the parties.

On the other hand, the franchisor is also bound to fulfill all his promises written in the agreement for the franchisee such as financial statement, promotion fund, supervisory control, training arrangements and annual report should be submitted to the office of the registrar without fail.213

 WAIVERS

According to the franchise act, in any condition of franchise agreement for the purpose of avoiding the franchisee from the losses the provision of the waiving is available in the act.214

 OFFENSES AND PENALTIES

According to the franchise act, strict offenses and penalties are laid down in the situation of competing the offense from the side of any party. Heavy fine and imprisonment will be declared from the office of the registrar but these punishments will be given to the offender after the consideration of the severity of the break and breach of the law. Generally, a person who is

212 Petty, Richard E., and John T. Cacioppo. "Addressing disturbing and disturbed consumer behavior: Is it necessary to change the way we conduct behavioral science?" Journal of Marketing Research 33, no. 1 (1996): 1-8. 213 Picard, Robert G., and Leon Barkho. "12. Dubai Media City: creating benefits from foreign media developments." Media Clusters: Spatial Agglomeration and Content Capabilities (2011): 281. 214 WAIVER, OF BREACH. "No failure by the State to enforce any provisions hereof after any Event of Default shall be deemed a waiver of its rights with regard to that Event, or any subsequent Event." No express failure of any Event of Default shall be deemed a waiver of any provision hereof. No such failure or waiver shall be deemed a waiver of the right of the State to enforce each and all of the provisions hereof upon any further or other default on the part of the Contractor.

133 ______committing his first offense or mistake he is liable upon the convection to the maximum fine of R.M 50 thousand, with the sentence of nullifying the franchise contract. The court will also bind the franchisor to refund all type of payment to the franchisee, to prohibit making a new agreement or appointing a new franchisee. 215

 ENFORCEMENT

In this process, franchise act his authorize officer to investigate the activities of any party in detail, honestly and regular basis. He will bind the offender to appear in the court. In case of absence the concerning authority issues a warrant to arrest him if needed by the force.

In addition to such these powers mentioned in the franchise act all the powers concerning to the police investigation in all kinds of sizeable cases are also mentioned and given to the Malaysian Criminal Procedure Code, shall also work and apply. This department will adopt all the same process as franchise act in the premises of his court to arrest the concerned person. 216 c) DEDUCTION

In the struggle, efforts and endeavor, it insures the protection of all the rights of franchisor and all the rights of the franchisees. The franchise act is supposed to purports to extensively and also continuously regulate and also supervise the concerned area of franchising. On the other hand, invariably, the commencement of all the franchise act will engendered legal ramifications for the purpose of existing and also potential franchises and also for other such contractual business and their relationship. Similarly, some known-franchise and their arrangements such as their distribution ship kind of agreement, some technical assistance and also licensing arrangements that is supposed to satisfy the criteria of a “Franchise” may be

215 Norberry, Jennifer. "Australian Pollution Laws–Offences, Penalties and Regulatory Agencies." In Australian Institute of Criminology “Environmental Crime” Conference. 1993. 216 Nicholson-Crotty, Sean, and Laurence J. O'Toole Jr. "Public management and organizational performance: The case of law enforcement agencies." Journal of Public Administration Research and Theory 14, no. 1 (2004): 1-18.

134 ______also considered a loose type franchise agreement, although it may also not be intended and considered as a franchise agreement by the contracting parties

2.4.3 FRANCHISE LAW IN DUBAI a) PROLOGUE

There is no specific and unique law or enactment for diversifying in the UAE. General contract law and comparably business law is connected and utilized as a part of establishment and its understandings. UAE law is considered to command that the main nationals of UAE or the organizations those are possessed completely by the subjects of UAE or such companies with those the association is permitted from the administration of UAE and furthermore permitted to direct its operation. The Businesses that are situated in the distinctive numerous and free zones are altogether exempted. Nonetheless, there are strict principles and controls in regards to the new enrollment of another business in Dubai. Diversifying join the entrepreneurial enthusiasm of a little specialist with their experience and their assets of the bigger powerful organization. This association and its structure is amazingly dynamic and proficient and gives you the most extreme benefits and advantages with an extraordinary expansion to offer help from the franchisor. With a specific end goal to set up another establishment, you should have a positive and business and your mentality ought to be sure, hopeful, and energetic. Dubai regularly offers a jovial and neighborly condition in the field of business with its great terms of corporate tax assessment, the repatriation of advantages and benefits, and all sort of framework, dynamic element proprietorship and every single human asset.217 b) LEGAL PROCEDURE OF FRANCHISING IN DUBAI

Rundown of your interests and great aptitudes and tell and recognize such administration industry in which you need to enter. Make an exhaustive rundown of such accessible diversifying alternatives and openings by help

217 Alharbi, Mona Mohammed. "Barriers to franchising in Saudi Arabia." Journal of Marketing Channels 21, no. 3 (2014): 196-209.

135 ______of perusing through such nearby commercials and getting data and inquisitive from your neighbors, great companions and dependable relatives. 218

 Research the primary rundown of the franchisors that depends on different and diverse factors, for example, the picture of the brand, inclinations of the client and the nature of the administration. Presently limit such rundown to a couple of substances and endeavor to reach them actually or send your mail to them and express your taste and enthusiasm for the specific diversifying and their alternative and opportunity. 219  Verify the laws, a few tenets and critical enactment to begin and open another establishment in the nation of Dubai. You will likewise need to demonstrate that you are a Dubai resident, company that is entirely claimed by the Dubai subjects or the person with somewhere in the range of an accomplice or some support to begin and open another establishment and lead operations in state Dubai, as per United Arab Emirates (UAE) law and tenets. The support and accomplice ought to be a UAE national. In any case, on the off chance that you need to open another branch in a region that is called Multiple free zones, at that point this administer does not have any significant bearing to you.; in any case, you will have need to get considerably bigger and greater capital base to begin and open a branch in a free zone. You will likewise need to keep great contacts and better impact to open; run begin another branch of establishment in Dubai and a support additionally, will be exceptionally useful and helpful220

 Sign the concurrence with one of the very much presumed franchisors that most appropriate and best for you and your necessities. Draw and finish an agreement and consent to likewise the arrangement. You ought to

218 Abell, Mark, Simon Fielder, and Mumuksha Singh. "Bitcoin and International Franchising." Int'l J. Franchising L. 12 (2014): 33. 219 Asarpota, Jaishree. "Global franchising operational issues." Procedia-Social and Behavioral Sciences 130 (2014): 193-203. 220 Madichie, Nnamdi O., and Jerry Kolo. "An exploratory enquiry into the internationalisation of higher education in the United Arab Emirates." The Marketing Review 13, no. 1 (2013): 83-99.

136 ______counsel with legal counselor before to examine every one of the terms and conditions written in the assention, and afterward you should it. 221  Write a business timetable and plan that brings and incorporates of your business and its diagram, rival and its survey, market and its pattern in the particular and specific administration, your center competency, your projections of back, promoting and plans of dispersion and the options of your subsidizing. Incorporate the subtle elements of agreements or get authoritative records from your franchisor. You can likewise approach a UAE diversifying affiliation additionally Dubai Islãmic Bank or Mohammed container Rashid Establishment for Young Business Leaders for subsidizing means and sources. 222  Register your agreement and establishment understanding in the workplace of UAE court. This is compulsory and vital.  Register your establishment business and get and acquire the permit of exchange. You may likewise feel the need and the assistance of your support in such exercises, as a result of hard and the strict guidelines of enrollment in Dubai.  Choose a sensible and reasonable place and area that depends on your objective and showcase and follow the neighborhood zoning principles and directions.  Open your new establishment. Market your business through and with the franchisor, who will probably be prepared to offer for commercial and its help for recently conceived and existing establishments. 223

In Franchise UAE 2011 Farid Karmostaji, Director of Entrepreneur Development Division of Dubai SME, expressed and demonstrated that diversifying is a standout amongst the most valuable and effective strategy and approach to begin business and that why the franchisor can without much of a stretch reach to the new markets at insignificant and least

221 Grant, Jim, Fatema Shabbir Golawala, and Donelda S. McKechnie. "The United Arab Emirates: the twenty‐first century beckons." Thunderbird International Business Review 49, no. 4 (2007): 507-533. 222 Zoubir, Yahia H. "Doing business in… The United Arab Emirates." Thunderbird International Business Review 41, no. 2 (1999): 215-229. 223 Stovall, Howard L. "Recent Revisions to Commercial Agency Law in the United Arab Emirates." Arab Law Quarterly (2008): 307-330.

137 ______expenses, while the franchisee can get advantage from the forces and qualities of a thrived, built up mark, the preparation and skill moreover. As indicated by Gaurav Marya, Managing Director, Franchise Middle East, there has been an incredible ascent in enthusiasm of diversifying in the UAE and the locale and unique and numerous UAE brands are prepared to join worldwide market. 224

Hence, the establishment mode and model are a celebrated and prevalent strategy for the abroad organizations to get entrance in the Dubai advertise while keeping up and holding control over all their image. It is likewise exceptionally famous in UAE organizations since it needs to stretch out and to grow it locally and territorially.

 There is nobody particular specific establishment law in Dubai. The idea and idea of the matter of diversifying falls inside the breaking points and ambit of the business and organization laws which don't demonstrate any distinction between establishment, office or dissemination assentions.  The Agency Law regularly tends to offer support to specialists/franchisees and don't give much support to the franchisor (instead of franchisors).  Registration of concurrences with the Ministry of Economy can give and deal with an upgraded capacity to stop and keep the parallel exchanging of merchandise and a reasonable evidential premise whereupon is to continue with any sort of activities for the exchange stamp encroachment, however the end of an enlisted organization understanding can be exceptionally troublesome and hard.225

224 Briggs, Richard, and Armita Araghi. "Franchising in the United Arab Emirates." Int'l J. Franchising L. 7 (2009): 5. 225 TODAY, ADVERTISE. "Welcome to." FUEL (Youth) 7 (2012): 00pm.

138 ______c) IMPORTANT LAW OF FRANCHISING IN DUBAI 226

Diversifying alludes and has a place with the plan of action and whereby the franchisor gives and allows an autonomous administrator, as the privilege to utilize and receive the franchisor's business modes and techniques and rehearses and can utilize the privilege to convey and advance items which are produced by the such franchisor, the franchisee can utilize the franchisor's exchange stamps and can get and get preparing and other help and help, for example, in the figure of global and furthermore national publicizing. Such assentions are regularly proceeded for a long stretch and time with the state of early end by either party for the most part and more often than not causing perilous and genuine punishments.

In spite of the fact that there is nobody particular and exceptional diversifying law in Dubai, yet a scope of all polite and every single business law apply and can be utilized relying upon the terms and state of the agreement. There are some various laws that are to be connected to be utilized for diversifying connections and these are following:

 Federal Law No. 18 of 1981 on the Organization of Commercial Agencies (as altered by Law No. 14 of 1998) and it was additionally revised by Law No. 13 of 2006.  Federal Law No. 5 of 1985 on Civil Transactions.  Federal Law No. 18 of 1993 on Commercial Transactions.

Notwithstanding the terms and conditions specified above of the understanding, there are some different laws, standards and controls which are following:

 UAE licensed innovation laws for exchange stamps, copyright and licenses.

226 Grant, Jim, Fatema Shabbir Golawala, and Donelda S. McKechnie. "The United Arab Emirates: the twenty‐first century beckons." Thunderbird International Business Review 49, no. 4 (2007): 507-533.

139 ______ Labor laws, particularly, where a franchisor may second staff to the franchisee.  Local Municipality rules - in connection to business names and signage;  UAE general guidelines and standards managing restriction and piece of exchange and task assignment of the establishment back to the franchisor in case of default.

As per the Agency Law and administer, a Commercial Agency is might be characterized as a portrayal of a Principal by an Agent on the circulation, the deal offers or the introduction of item or the administration inside the Emirate. 227 d) INTERNATIONAL FRANCHISING IN DUBAI 228

 Franchised organizations are considered to keep on growing everywhere throughout the world. Residential franchisors in Dubai are progressively building up and advancing establishments crosswise over fringes. Global diversifying is additionally effective in light of the fact that all purchasers around the globe and acknowledge and perceive popular brands as images of value, consistency, administration, and esteem.  If you are thinking about and thinking the acquiring of an establishment, you should need as far as possible the extension and standard of your pursuit to franchisors in your own particular home nation. Progressively, franchisors are looking and looking for franchisees universally, and a remote based franchisor may oversee and furnish you with the diversified alternative and opportunity you are looking for.  In many cases, remote based franchisors offer the individual establishments to work and run a solitary unit. They additionally regularly offer advancement offices and rights to run and work numerous units and ace establishment rights. An ace establishment allows and permits you,

227 Martin, Josh. "Franchising in the Middle East." Management Review 88, no. 6 (1999): 38. 228 Ryans Jr, John K., Sherry Lotz, and Robert Krampf. "Do master franchisors drive global franchising?" Marketing management 8, no. 2 (1999): 32.

140 ______basically, the chance to be the franchisor for the outside based idea and thought in your own nation or your very own part nation.  International diversifying business presents distinctive sorts of difficulties than household business of diversifying. For instance, if merchandise will originate from abroad, you may need and request to know about various and different obligations, taxes, and transportation necessities. You additionally may need to think and think about dialect and social contrasts. For example, on the off chance that you are thought to be a franchisee in an alternate nation from the franchisor's home office, the franchisor's framework may likewise should be changed or adjusted for the utilization in your own particular nation.229 e) MINORITIES AND WOMEN IN FRANCHISING 230

 Increasing quantities of minorities and ladies are expressing finding that diversifying can be a helpful and great open door for everyone. Diversifying organizes and gives a way to relieving and limiting the conventional impediments that generally skillful and competent little financial specialists, especially the ladies and all minorities, confront, for example, absence of business experience and capital. Franchisors give and direct administrative preparing and help and help on an on-going premise and, now and again, organize and oversee for property leases, give one of a kind gear financing and deal leaseback projects, and help and help franchisees in getting and acquiring financing.  As a consequence of a steady and solid economy, ladies are additionally progressively in initiative positions in diversifying business through building up new organizations, getting to be noticeably single

229 Madichie, Nnamdi O., and Jerry Kolo. "An exploratory enquiry into the internationalisation of higher education in the United Arab Emirates." The Marketing Review 13, no. 1 (2013): 83-99. 230 YEOH, Caroline, and Joses Wong. "Internationalizing Through Franchising-Singapore's Gambits in the GCC: Mining the Silver around the Gold." Journal of International Management Studies 11, no. 1 (2011): 164.

141 ______franchisee and multiunit franchisees, or having abnormal state positions at corporate central station. 231 f) TECHNOLOGY AND FRANCHISING

There are a few and distinctive patterns identified with the utilization of innovation in diversifying. To start with, numerous franchisors are utilizing the web to speak with establishment entrepreneurs and providers through secure and safe extranets to share join basic data, encourage and advance talk among the establishment arrange, post operations manuals and refreshes, scatter and spread news about advertisement crusades, take part in the store network administration, and assemble gather deals reports consequently and without the request and requirement for more work escalated information passage. Second, franchisors additionally utilize the web to promote their system to the clients. Third, some franchisors utilize the web to take part in business-to-shopper (B2C) internet business, regularly with the inclusion and support of franchisees. Fourth, a wide range of forthcoming franchisees gather data and figure out how to reach franchisors utilizing their web. Some franchisors now report that they get substantially more deals and buy leads from the web than from some other source. Fifth, some franchisors have begun giving and offering revelations to forthcoming franchisees by electronic means. 6th, franchisors make broad more noteworthy utilization of innovation in offering their everything administrations straightforwardly to the shoppers, for example, systems of organizations that offer and give web architecture and web facilitating. 232

Dubai was recorded as a best nation and territory for Asian retailers focusing on every single outside market second just to London as per a current report titled "How Global is the Business of Retail" by CB Richard Ellis. Brands from

231 Joudrey, P. J., K. A. Jasie, L. Pykalo, S. T. Singer, M. B. Woodin, and S. Sherman. "The operation, products and promotion of waterpipe businesses in New York City, Abu Dhabi and Dubai/Fonctionnement, produits et moyens de promotion des établissements proposant du tabac à narguilé à New York, Abu Dhabi et Dubaï." Eastern Mediterranean Health Journal 22, no. 4 (2016): 237. 232 Assaf, Raef Jiries, Orange County, and Nadia Abgrab Noormohamed. "TO BUY OR NOT TO BUY--ATTITUDES OF MIDDLE EAST COLLEGE CONSUMERS TOWARD WESTERN-MADE PRODUCTS." RESEARCH YEARBOOK (2012): 175.

142 ______Asia, and all the more particularly and exceptionally India, have an immense potential for diversifying openings and alternatives in the UAE because of their extensive and enormous statistic blend and splendid financial brilliant future. 233

The Middle East locale's multi-ethnic populace with high discretionary cashflow loans to a domain that is prepared and supportive for new business ventures and sprouting undertakings. All the more critically, the district gloats more than 400,000 high total assets people who have more than $2 trillion together to put resources into new organizations and exchange.234

The provincial economy of the Gulf nations is getting passage into another phase with all the little and every single medium venture and the establishment segment is assuming a significant urgent part in the economy. What's more, offer one of the greatest sources and methods for new business openings, possibilities and work Franchise contributes and offers to the development and advancement of the economy and there is While Fast Franchise Selection aides and helps with matchmaking global establishment ideas thoughts with intrigued business people and furthermore financial specialists. 235

Center East-A worldwide focal point of business and exchange

 The add up to populace of the Middle East and North Africa is 297 Million. The locale's populace development rate is 3%-5% every year, which is one of the most noteworthy provincial rates on the planet 236

233 Asarpota, Jaishree. "Global franchising operational issues." Procedia-Social and Behavioral Sciences 130 (2014): 193-203. 234 Grandhi, Balakrishna, Jyothsna Singh, and Nitin Patwa. "Navigating retail brands for staying alive." EuroMed Journal of Business 7, no. 1 (2012): 66-82. 235 Act, Sarbanes-Oxley, B. I. T. Argentina, and Franchising Code. "Accounting standards, IFRS see International Financial Reporting Standards Alien Tort Statute Agent Orange case 232." Book reviews 170, no. 172: 323-334. 236 Bunnell, Tristan. "The exporting and franchising of elite English private schools: the emerging “second wave”." Asia Pacific Journal of Education 28, no. 4 (2008): 383-393.

143 ______ The SMEs and establishment parts are viewed as one of the quickest developing monetary divisions 237

 UAE's establishment business is worth over AED 1.1 billion 238

 International organizations and associations are indicating profound and distinct fascination in Dubai and, with the US economy being stagnated; the nearby market is likewise getting the open doors. 239  Fast sustenance represents 40 for every penny of the aggregate market, different divisions are additionally developing quickly. Industry gauges put the yearly development of this part at 27 for each penny. 240  Franchising in the Middle East is accessible on the limit of amazing development. A gigantic and positive reaction from speculators in the locale as diversifying is a critical and supportive wellspring of the new business choices and openings. 241  Dubai remains the favored sensible base for diversified operations in the locale, given its expense status, the relative strength of its legitimate and administrative frameworks and it additionally opens to remote venture, however most essential nations in the Middle East district don't have establishment particular enactment.  The franchisee showcase is overpowered and commanded by few players who take numerous Brands establishment known as Franchise

237 Rosenbaum, Lee, and Maymanah Farhat. "Should we be cynical about international museum franchises?" In Apollo, vol. 181, no. 627, pp. 18-20. Apollo Magazine Ltd., 2015. 238 YEOH, Caroline, and Joses Wong. "Internationalizing Through Franchising-Singapore's Gambits in the GCC: Mining the Silver around the Gold." Journal of International Management Studies 11, no. 1 (2011): 164. 239 Von Braun, Joachim, and Ruth Suseela Meinzen-Dick. Land grabbing" by foreign investors in developing countries: risks and opportunities. Washington, DC: International Food Policy Research Institute, 2009. 240 Geray, Okan, and M. A. Al-Bastaki. "Dubai EGovernment Initiative: Concept, Achievements and the Future Pillars of Success." Dubai EGovernment Website. Retrieved from: http://egov. dubai. ae/opt/CMSContent/Active/CORP/en/Documents/Library/OECD- UNDP_Paper-12. pdf (2005). 241 Gallant, Monica, Sudipa Majumdar, and Damodharan Varadarajan. "Outlook of female students towards entrepreneurship: An analysis of a selection of business students in Dubai." Education, Business and Society: Contemporary Middle Eastern Issues 3, no. 3 (2010): 218-230.

144 ______Conglomerates, with some having upwards of 50-55 marks in their portfolio. 242  To be a franchisor you are to require a demonstrated and effective business, with particular brand, framework, name and appearance:  A business, which can be effectively copied in different areas to make a practicable, reasonable and gainful system 243  Been running no less than two outlets for a sensible and reasonable time allotment 244  A business which can be effectively learned in a sensible and countable timeframe by somebody with the required data and information, aptitudes and enthusiasm to fit the coveted franchisee profile 245  An on-going pay from showcasing and administration benefit expenses 246  Increase the esteem and significance of the brand and the mother organization.247

 These are just the general benefits and profits of franchising. Each franchising project is different and there are so many other benefits and interests that apply to each and every different case.

 The most direct and jovial gauge of the establishment business in the Middle East and North Africa put it at $ 30 billion today. It additionally puts the yearly development of Middle East diversifying segment at 27 for each penny.

242 Al‐Sayegh, Fatma. "Merchants’ role in a changing society: the case of Dubai, 1900– 90." Middle Eastern Studies 34, no. 1 (1998): 87-102. 243 Rettab, Belaid, Anis Ben Brik, and Kamel Mellahi. "A study of management perceptions of the impact of corporate social responsibility on organisational performance in emerging economies: the case of Dubai." Journal of Business Ethics 89, no. 3 (2009): 371-390. 244 Sierra, Jeremy J., and Michael R. Hyman. "Outlet mall shoppers' intentions to purchase apparel: A dual-process perspective." Journal of Retailing and Consumer Services 18, no. 4 (2011): 341-347. 245 Gallant, Monica, Sudipa Majumdar, and Damodharan Varadarajan. "Outlook of female students towards entrepreneurship: An analysis of a selection of business students in Dubai." Education, Business and Society: Contemporary Middle Eastern Issues 3, no. 3 (2010): 218-230. 246 Park, Chan S., G. Kim, and S. Choi. "Engineering economics." Pearson Prentice Hall, New Jersey (2007). 247 Von Halle, Barbara. Business rules applied: building better systems using the business rules approach. Wiley Publishing, 2001.

145 ______ This wild-eyed pace gives and oversees tremendous chances to franchisors to convey and elevate their brands to the locale, as this pattern is set to keep on flourishing for a considerable length of time to come, fueled by enormous utilization hunger, monetary development and record oil costs.248  This frantic pace provides and manages huge opportunities for franchisors to bring and promote their brands to the region, as this trend is set to continue to flourish for years to come, powered by massive consumption appetite, economic growth and record oil prices.249

 Ensure the planning is ideal for the business to enter the worldwide field. g) In the most recent decade, many Middle Eastern organizations turned out to be exceptionally fruitful in whatever remains of the world with their effective style, cost administration and aggressive recognized items, particularly in the retail, nourishment and providing food areas. 250 h) SUCCESSFUL FRANCHISES IN DUBAI

There are many attractive and successful franchises in Dubai of which some prominent examples are as follows:

 HERITAGE FOR HENNA - BEAUTY FRANCHISE

- Heritage for Henna began in Jumeirah Beach Hotel, Dubai. It was a gigantic accomplishment with remote guests and affirmed its proprietor's conviction that henna beautification has an enormous market outside of this area.

To look after quality, Heritage for Henna sets up its own ranches in precisely chose locales, where top quality henna bushes are developed. What's more, significant venture is made to choose and prepare the most skilled henna

248 Ross, Ronald G. The Business Rule Book: Classifying, Defining and Modeling Rules: Ross Method. Business Rule Solutions Incorporated, 1997. 249 Grosof, Benjamin N., Yannis Labrou, and Hoi Y. Chan. "A declarative approach to business rules in contracts: courteous logic programs in XML." In Proceedings of the 1st ACM conference on Electronic commerce, pp. 68-77. ACM, 1999. 250 Sarraf, Qusai, and Gerard Ellis. "Business rules in retail: the Tesco. com story." Business Rules Journal 7, no. 6 (2006).

146 ______specialists. Legacy for Henna gives a wide assortment of illustrations with conventional, established, contemporary and present-day plans. Dissimilar to different tasks that required substantial space and high lease, setting up a henna salon required just the base of 4 square meters.

Legacy for Henna gives its establishment accomplices a full scope of help benefits that will empower them to deal with their ventures with an abnormal state of effectiveness and gainfulness.

Moreover, it offers help with the area determination, rental arrangements and establishment of style. In the meantime, staff will be chosen and prepared to guarantee that they meet "Legacy for Henna's" high imaginative and expert measures. 251

 FOOT SOLUTIONS HEALTH & WELLNESS FRANCHISE

This establishment gives foot mind arrangements and utilize cutting edge PC foot filtering hardware to deliver a total line of custom shoe embeds and orthotics. 252

 MAL RIDGE MASTER DISTRIBUTOR - PHOTOGRAPHIC ENGRAVING FRANCHISE

Mal edge has built up an interesting procedure for the modified etching of photos and designs on glass surface, while, creating the most noteworthy complete and definition. They do photograph etching and customized

251 Camel, Stuffed, Burj Khalifa, Burj Al Arab, Dubai Aquarium, Palm Jumeriah, Desert Safari, and Gold Souk. "Cultural History." 252 Larijani, B., R. Heshmat, A. Bahrami, H. Delshad, K. Mohammad, R. Heidarpour, K. Kamali, M. Farhadi, F. Gharibdoust, and S. H. Madani. "Effects of intravenous Semelil (ANGIPARSTM) on diabetic foot ulcers healing: A multicenter clinical trial." DARU Journal of Pharmaceutical Sciences 16, no. Suppl. 1 (2008): 35-40.

147 ______etching on a wide range of dish sets, from precious stone honors and trophies to silverware. 253

Aside from the regulars like 254 McDonalds, Burger King and KFC,255 the 3 greatest developing establishment marks universally, there are numerous new easygoing feasting, fast food diversifying wanders which appear to demonstrate enthusiasm for the Dubai showcase. 256

Egypt's Integrated Food Franchising is advancing its Pizza Co. nez. Item, a progressive new interpretation of take away. The item is a pizza cone like a gelato and it takes five minutes to plan. The one of a kind offering suggestion of this item is it is convenient and has versatility. The fast food items from the US, for instance, Pizza Hut and Dominoes have entered the Dubai showcase yet Pizza Co. nez. Brand is about real Italian fixings. 257

 LONDON DAIRY

Is another nourishment mark hoping to expand its essence in the market? London Dairy is a total Dessert Destination that offers the whole elite scope of London Dairy Premium Ice Creams, dessert sundaes, cakes, cakes and single cause espresso. 258

 SUBWAY

Subway establishment business is pushing the fast food market to proceed with the globalization of its organization, and there are no plans on halting in Dubai, with various stores opening in Kuwait, Saudi Arabia, and Qatar.

253 Chen, Nong, Jesse Darja, Shinichi Narata, Kenji Ikeda, Kazuhiro Nishide, and Yoshiaki Nakano. "Ridge semiconductor laser with laterally undercut etched current confinement structure." IEICE transactions on electronics 90, no. 5 (2007): 1105-1110. 254 Inshasi, Jihad, and Mona Thakre. "Prevalence of multiple sclerosis in Dubai, United Arab Emirates." International Journal of Neuroscience 121, no. 7 (2011): 393-398. 255 Curtiss, Richard H. "Who Won the Battles of Burger King and Walt Disney Productions?" The Washington Report on Middle East Affairs 18, no. 8 (1999): 13. 256 Balakrishnan, Melodena Stephens. "Americana Group: KFC in Mecca (or Makkah)." (2013): 125. 257 Roy, Ram. "Strategic Operations Management." 258 Andrews, Sudhir. Food and beverage service: A training manual. Tata McGraw-Hill Education, 2013.

148 ______There are 60 establishments effectively exhibit all through Dubai, and this implies intense rivalry for forthcoming franchisees in Dubai. 259 i) DEDUCTION

Developing markets are considered progressively more valuable and critical as circumstances and alternatives for retail diversifying in the West is limited and reduced due to advertise immersion and furthermore expanded rivalry. Ventures in which the diversifying is develop, offer littler and less benefits. For instance, the fast food, the retailing, lodgings and numerous different administrations based ventures. Developing markets unquestionably are unsaturated, balanced for the development and there is expanded and much interest for the items and the administrations that epitomize the universal norms and furthermore quality. Establishments permit to nearby business visionaries to claim and furthermore work the outlets of multinational organizations that give and offer name, mark, full mindfulness and furthermore acknowledgment. The guide has completely endeavored to catch a few issues and issues important and in regards to diversifying. Diversifying considers and checks authoritative elements of enterprises and organizations as well as some ecological elements, the firm choices as to methods of all passage and the market choice, and operations. Establishments have little and full-scale impacts as far as employment creation, modernization, financial groups, business enterprise and development moreover. Internationalization of the diversifying is a standout amongst the most essential and well-known patterns of today. The passage of ladies and rise minorities in diversifying expanded the utilization of innovation. These have dynamic, significant, profound and constructive outcomes on the matter of diversifying and make it more successful and dynamic strategy for doing any business today.

259 Oakden, Shaina, and Marwan Al Hamar. "Implementing the Menu-Safe “evolving HACCP” system in Subway, United Arab Emirates (UAE)." Worldwide Hospitality and Tourism Themes 3, no. 5 (2011): 450-454.

149 ______j) A CHART OF DESCRIPTIVE STUDY OF LEGAL PROCEDURE OF FRANCHISING (PAKISTAN, MALAYSIA AND DUBAI) PAKISTAN  No Specific Law of Franchise Business  Available Some Rules and Regulations for Registration  Franchise Act Working to Some Extant  Precedent of Supreme Court Declaration About Franchise Business  Franchise Business Working-Just Like a License  Franchise Business Working –Not Just Like an Agency  Contract Act Working for Franchise Business  Contract Act Also Known as Contract Law Of 1872  Government Controls Franchise Business by Contract Laws and Contract Rules  Government Issues Strict Instructions  Government Enforces for Implementation  Government Observes Activities Keenly

MALAYSIA

 Contractual Law Of 08-10-1998 Works  Available Specific Rules and Regulations for Registration of Franchise Business  Particular Laws Are Formulated  Supreme Court Works at The End  Franchise Business Working-Just Like a License  Franchise Business Working –Not Just Like an Agency  Contract Act Working for Franchise Business  Contractual Law Of 1998 Works  Government Controls Franchise Business by Contract Laws and Contract Rules  Government Issues Strict Instructions  Government Enforces for Implementation  Government Observes Activities Keenly  Government Is Responsible After Registration the Deal

150 ______ Government Gives Protection  Rules for Foreigner Franchisor  Registration in Registrar Office  Franchisor Gets Approval First  After Approval, He Can Write an Agreement  A Copy of Written Agreement, He Sends to Registrar Office  After Receiving This Copy, Ro Starts to Watch Their Activities  Rules for Local Franchisor (Same)  Maximum Duration of a Deal-3 Years  Trade-Mark Act Of 1976 – Working  Advertisement Rules – 5 Days Before Publication  Decision of Registrar Is Final  Ro Decision Can Be Challenged in The Office of Minister of Entrepreneurs and Cooperative Development within 14 Days of Ro Notice  Minister Decides Maximum in One Month  Agreement Period – At Least 5 Years  Termination of A Deal Agreement by Mutual Consent  In Case of Dispute, The Court Decides  After Termination, They Can Continue These Terms and Conditions For 2 Years  But They Are Bound to Pay Fee  Waiver in Law Available  Penalty in Any Breach of Law-Rm 5000 Thousand  According to Malaysian Criminal Procedure Code, A Police Investigation Officer Can Take Up This Case

DUBAI

 No specific law of franchise business  Available specific rules and regulations for registration of franchise business  Contractual law and commercial law are made  Supreme court works at the end (in case of dispute)  Franchise Business Working-Just Like a License  Franchise Business Working –Not Just Like an Agency

151 ______ Contract Act Working for Franchise Business  Federal law no. 18 of 1981 on the association of business offices (as altered by law no. 14 of 1998) and it was additionally changed by law no. 13 of 2006.  Federal law no. 5 of 1985 on common exchanges  Federal law no. 18 of 1993 on business exchanges.  UAE licensed innovation laws for exchange checks, copyright and licenses. Work laws, particularly, where a franchisor may second staff to the franchisee.  Local district rules - in connection to business names and signage;  UAE general standards and standards managing restriction and square of exchange and task errand of the establishment back to the franchisor in case of default.  According to the organization law and lead, a business office is might be characterized as a portrayal of a key by an operator on the dissemination, the deal offers or the introduction of product or the administration inside the emirate.  Agent ought to be a UAE national or an organization totally and entirely possessed by UAE nationals.  Relationship ought to be selective; and.  Relationship between the operator and the key ought to be enrolled with the UAE Ministry of Economy.  The Agency Law offers favors to the operators/franchisees instead of franchisors and in this way regarding the setting of universal brands wishing and hoping to grow and reach out into the UAE advertise, thought needs and requests to be given to whether it is proper and sensible to have the understanding enlisted with the UAE Ministry of Economy. For franchisees, the choice frequently depends entirely on this point whether they are the UAE nationals or their organization is totally and completely claimed by a UAE national. For both franchisors and franchisees, enrollment can give a created and upgraded capacity to forestall and stop parallel exchanging of products and a reasonable evidential premise whereupon to continue with any activities of deeds for exchange stamp encroachment. On account of franchisors, be that as it may, end of the enrolled office understanding and

152 ______contract is normally troublesome. Generous remuneration is granted to the operator upon end and the specialist should be qualified for commissions from deals done and made by others individual in their domain. At the point when the organization deed or assention is enrolled, it is troublesome for standards to choose or say a substitution operator in the time and occasion of end or the inability to recharge the understanding.260

2.5 GLIMPSES (ADSPECTUS) OF THE CHAPTER

 Illustrated the theoretical concept of franchise business.

 Justified the empirical thought of franchise business.

 Analyzed the franchising laws.

 Discussed the legal issues and implications.

 Elaborated the franchising laws in Pakistan.

 Explored the complications of franchising laws in Pakistan.

 Introduced the process of its machinery in Pakistan.

 Furnished a juristic discussion about, `` is Franchise an agency``?

 Dug out the reality about, `` is Franchise a license``?

 Demystified the franchising laws in Malaysia.

 Connotative meaning of franchising laws in Dubai.

 Exhausted and displayed a critical and analytical report of franchising laws of Pakistan, Malaysia and Dubai.

260 Temesgen, Eshetu Yadeta. "Laws regulating franchise business in different jurisdictions." Haramaya Law Review 5, no. 1 (2016): 145-157.

153 ______

CHAPTER 3

FRANCHISE BUSINESS IN PAKISTAN: INCEPTION TO DATE

154 ______

CHAPTER #3

3.1. Introduction 3.2. Historical development of franchise business in Pakistan 3.2.1. The franchising business in Pakistan is not limited only to food 3.7.1 Presence of high potential to craft on franchises in Pakistan 3.7.2 Family business and historically development 3.7.3 Global steps for the development of franchise business in Pakistan 3.8 Chronological history of franchise business in Pakistan 3.8.1 Standard chartered bank 3.8.2 history of Bata shoe organization in Pakistan 3.8.3 Pakistan beverage limited 3.8.4 Coca-Cola Pakistan 3.8.5 the pizza hovel story starts in May 1958 3.8.6 OCS courier company 3.8.7 Gloria jean's coffee's 3.8.8 p and g 3.9 Franchising in education sector: analytical review 3.9.1 Prolusion to education: 3.9.2 Types of education: 3.9.3 System of education in Pakistan 3.9.4 The emergence of franchising in the education sector 3.9.5 The social dimension of franchising in the education sector 3.9.6 The basic principles of franchising 3.9.7 The perspectives and challenges for franchisers and franchisees in the education sector 3.9.8 Comments about dr. Rozenn 3.9.9 Punjab group of colleges and franchising in education 3.9.10 Beaconhouse school system and franchising in education 3.9.11 The educator school system and franchising in education 3.9.12 The country school system and franchising in education 3.9.13 The American lycetuff school 3.9.14 List of franchising schools 3.10 Franchising in food industry 3.10.1 List of important restaurants, bakeries and food places 3.11 Franchising business in other business sector 3.11.1 Franchising in pharmaceutical sector 3.11.2 Franchising in computer software sector 3.11.3 Franchising in garment sector 3.11.4 Franchising in automobiles in Pakistan 3.12 Glimpses (adspectus) of the chapter

155 ______

3.1. INTRODUCTION In this chapter, in first section, deep roots and origins of franchise business will be brought to light. Light will be thrown on those pillars of franchise business that were grounded into the land of Pakistan. Its first step of emergence in Pakistan is to be dug out. The evolution of franchise business in Pakistan, its gradually development and enhancement would be made known for readers and researchers. Historical and factual reviews of its developments and growing in environment of Pakistan will be carved out. In second section, franchising in Education in Pakistan has to be expounded. Its progress, slow and steady flourishing and then rapid promotion could be made common and popular in the mass and people. The introduction to education, its types, and its system in Pakistan is to be be interlocked. Its emergence, social and economic dimension in education franchising in Pakistan would be gathered on one page in public. Some important and basic rules of franchising in education will be collected under discussion and finalized to adopt. Considerable and countable difficulties and hurdles and also some challenges facing in franchising in education especially in Pakistan have to be demystified and elucidated. Recognizable and toothsome services of franchising in education of Beacon House School System, the Educator School System, the Country School System, and the American Lycetuff School are considered to be accentuated. Conceptual, abstract and intellectual approaches and adspectus of franchising in Food sector and Food industry have been illustrated and justified in Pakistan. Objectives and experiential applications of franchising in a house of food and its relevant fields are recognized to be practiced in section four. A detailed and descriptive report of existential works and observational touches and implementations and also practical and empirical approaches of franchising in Pharmaceutical sector, Computer Software Sector, Garments Sector and Automobiles Sector would be discussed, elaborated, justified and proved with the help of arguments and proofs on empirical basis of theory in section 5. And in this way, a comprehensive, meaningful, substantive and healthy report of theoretical and empirical approaches and applications of

156 ______franchising in Pakistan in all the sectors mentioned above in introduction of this chapter will be managed and prepared.

3.2. HISTORICAL DEVELOPMENT OF FRANCHISE BUSINESS IN PAKISTAN It is admitted fact that Pakistan is such type of a country that there are so many types of Franchise business are running and operating in Pakistan. No doubt the USA is leading the world in Franchising261 but Pakistan is not far behind in this field. Pakistan is such a country in which a great mixture of local and foreign brands almost in all types of franchising is available in Pakistan.262 In this way there are so many chances and options in Pakistan to choose and to start this business. Therefore, if a man wants to run and adopt this business in Pakistan the Earth of Pakistan will say ok and welcome. So, in this connection efforts have been done to describe the brief history of franchising developing historically. Almost 65 to 70 international franchises are going and running in Pakistan successfully in all over the country.263 Likewise, the same numbers of local types of franchise are also flourishing in the country.264 In Pakistan, there is an attraction for the foreigners for such type of business every time and everywhere. That is why there are so many types of franchise business that are running, developing and dominating in this country especially in the food business.265

The Pakistan food association (PFA)266 has the estimate that the sales value of international franchises in the field of food sector in Pakistan stands and

261 Ekelund Jr, Robert B., and Robert F. Hebert. "The proto-history of franchise bidding." Southern Economic Journal (1981): 464-474. 262 Haqqani, Husain. Magnificent delusions: Pakistan, the United States, and an epic history of misunderstanding. PublicAffairs, 2015. 263 Gallego, Francisco A. "Historical origins of schooling: The role of democracy and political decentralization." The Review of Economics and Statistics 92, no. 2 (2010): 228-243. 264 Cheema, Ali, Asim Ijaz Khwaja, and Adnan Qadir. "Local government reforms in Pakistan: context, content and causes." Decentralization and local governance in developing countries: A comparative perspective (2006): 257-84. 265 Bor, Norman Loftus. "Grasses of Burma, Ceylon, India and Pakistan." Grasses of Burma, Ceylon, India and Pakistan. (1960). 266 Tucker, G. S., T. Lambourne, J. B. Adams, and A. Lach. "Application of a biochemical time–temperature integrator to estimate pasteurisation values in continuous food prFladmoe-Lindquist, Karin, and Laurent L. Jacque. "Control modes in international service operations: The propensity to

157 ______falls in this field 25000s independent food centers in Pakistan.267 There are so many numbers of foreign food franchises in Pakistan that are interlinked and emerged from USA.268 Similarly, there are so many Americans companies which have entered first in Pakistan in local market. List of important foreign companies269 that are running successfully in Pakistan are following:

FRANCHISE COUNTRY RANK INDUSTRY NAME Subway USA 1 Food McDonald USA 2 Food KFC USA 3 Food Burger King USA 4 Food Pizza Hut USA 7 Food Carrefour France 13 Convenience Store (Hyperstar) Dunkin’ Donuts USA 14 Food Domino’s Pizza USA 17 Food Marriott USA 18 Hotel International Papa John’s USA 24 Food Hardees’s USA 47 Food Yogen Fruz Canada 53 Frozen Yogurt Johnny Rockets USA 97 Food

In tandem and connection and with the development and progress of foreign brands, Pakistani food and its brands are making progress and promotion not only in local side but also in international market. To site and give some

franchise." Management Science 41, no. 7 (1995): 1238- 1249.ocesses." Innovative food science & emerging technologies 3, no. 2 (2002): 165-174. 267Epstein, Leonard H., Elizabeth A. Handley, Kelly K. Dearing, David D. Cho, James N. Roemmich, Rocco A. Paluch, Samina Raja, Youngju Pak, and Bonnie Spring. "Purchases of food in youth: influence of price and income." Psychological Science 17, no. 1 (2006): 82-89. 268 Hackett, Donald W. "The international expansion of US franchise systems: Status and stEhsan, Usman. "Factors important for the selection of fast food restaurants: an empirical study across three cities of Pakistan." British Food Journal 114, no. 9 (2012): 1251-1264.rategies." Journal of International Business Studies (1976): 65-75. 269 Ehsan, Usman. "Factors important for the selection of fast food restaurants: an empirical stuMoss, Robert F. "A history of barbecue in the Mid-South region." The slaw and the slow cooked: Culture and barbecue in the Mid-South (2011): 25-42. dy across three cities of Pakistan." British Food Journal 114, no. 9 (2012): 1251- 1264.

158 ______and few examples that are very important and has sound progress in this field which are the following:

Bar Bq270 has its own name in the history of Pakistan. It has won the international franchiser award of the year of 2015 granted by FLA Singapore. It has expended its branches in different countries such as Dubai, Kuala Lumpur and Singapore. These branches before reaching the markets of these countries already been setup their restaurants in the city of Lahore and Islãmabad-Pakistan. Similarly, Lal Qila restaurant271 also opened its two outlets in U.A.E. One branch is established in Dubai and also Abu Dhabi and other branches also established in Lahore and also Hyderabad.272

In addition to these branches mentioned above, United King Bakery273 is considerable franchising in the history of Pakistan. It has expended to nine locations in the city of Karachi and also is exporting all its packaged products to different countries and the number of those countries is more than 25. According to a serve it is reaching the level of global franchise business. In this field Student Biryani274 is very considerable also. It has multiple and different outlets in different cities such as Karachi, Hyderabad, Lahore, U.A.E, Saudi Arabia, Oman, Canada and also Australia. The Gourmet275 brand is not forgettable in this field. There are so many branches and locations of this brand in Pakistan and out of the Pakistan also. According to a research report it has extended its branches to 95 locations and places in

270 Moss, Robert F. "A history of barbecue in the Mid-South region." The slaw and the slow cooked: Culture and barbecue in the Mid-South (2011): 25-42. 271 Khan, Muhammad Inayatullah. "Diversity and distribution of butterflies (Insecta: Lepidoptera) of district Dir lower, Khyber Pukhtoonkhwa, Pakistan." Arthropods 5, no. 1 (2016): 11. 272 Misra, V. N. "Prehistoric human colonization of India." Journal of Biosciences26, no. 4 (2001): 491-531. 273 Newman, C. W., and R. K. Newman. "A brief history of barley foods." Cereal Foods WChaudhry, Razia. "BODY MASS INDEX AND ITS CORRELATION WITH SOCIODEMOGRAPHIC INDICATORS AMONG STUDENTS OF A MEDICAL INSTITUTION, LAHORE." Biomedica 25, no. 1 (2017): 77-84.orld 51, no. 1 (2006): 4-7. 274 Chaudhry, Razia. "BODY MASS INDEX AND ITS CORRELATION WITH SOCIODEMOGRAPHIC INDICATORS AMONG STUDENTS OF A MEDICAL INSTITUTION, LAHORE." Biomedica 25, no. 1 (2017): 77-84. 275 Jawaid, Shaukat Ali. "Orthopaedics and spinal surgery dept. at LMDC affiliated with GTTH performed 5295 surgeries and examined 20,037 patients in OPD during 2010." Pulse International 12, no. 13 (2011).

159 ______Lahore and other cities nearby and around the Punjab. The Meat One is a very special dish of this brand it is uncooked meat and it has its franchises that are operating in U.A.E.276

3.2.1. THE FRANCHSING BUSINSS IN PAKISTAN IS NOT LIMITED ONLY TO FOOD

No doubt most items of franchise business are visible and considered only in the shape of food but the presence of this thing is considerable, advisable and noticeable also in many other kinds of sectors in which this franchising is working and promoting rapidly. The sectors are the following, beauty, fashion, retail, wellness and the other services of some segments.277 The very popular brands out of the foreign sectors that are very conspicuous in Pakistan that are the following,

Levi’s, Nike, Deben Hamas, Next, Adidas, Mother care, Mango, and Hyper star. Most of the brands belong to the countries of the Europe and also of the U.S.A. 278

Very famous and notable Pakistani some brands that have their names and presence in the local market and as well as in the foreign market. The name of such brands is as follows;

 Khaadi: U.K, Malaysia, U.A.E. 279  Nishat Linen: U.A.E, K.S.A or Canada.280  Brands Just Pret: U.A.E.

276 Clarkson, Janet. Menus from history: historic meals and recipes for every day of the year. Vol. 2. Greenwood Pub Group, 2009. 277 Lipovetsky, Gilles, Catherine Porter, and Richard Sennett. The empire of fashion: dressing modern democracy. Princeton, NJ: Princeton University Press, 1994. 278 Brands, Henry W. The wages of globalism: Lyndon Johnson and the limits of American power. Oxford University Press, USA, 1995. 279 Prasad, C. Shambu. "Suicide deaths and quality of Indian cotton: Perspectives from history of technology and Khadi Movement." Economic and political weekly (1999): PE12-PE21. 280 Khan, Arslan Mahmood. "CUSTOMER LOYALTY IN CUSTOMERS OF NISHAT LINEN." PhD diss., © Lahore School of Economics, 2013.

160 ______ Bareeze: U.A.E.281  Junaid Jamshed: U.A. E282  Chen One: U.A.E., K.S.A.283  Ego: U.A.E., Mauritius, U.K.284

In addition to these brands leather and shoes segment has also their names in this field. English boot House, Stylo, Jefferies and also Hub Leather have their branches only limited in the local and domestic market only in the terms of the retailing. Likewise, some clothing franchises are very popular in this market also such as: Khaadi, Gul Ahmad, Bonanza and also Deepak Perwani has a great planning to establish their franchises in the country of India but it is subjected to the improvement in the field of political and economic relations also.285

Similarly, there are some other factors which are playing a major and pivotal role in the world of franchising. For example: retailing, the grocery, educational institutes (the Smart School, The Educators, the Allied School), security services, hotels, Jewelers, hospitals, Clinical laboratories and some courier services are working smoothly and embarrassing the concept gradually and also considered to be the tipped key future sectors of franchising. The franchise model is promoting and making progress in the telecom sector also in Pakistan. This can be judged and observed in the shape of mobile service and its providers just like Tele nor, Mobil ink and Ufone etc.286

281 Abrar, Muhammad, Xinming Deng, Asif Ali Safeer, Abdul Ghafoor, and Sajjad Ahmad Baig. "E-Marketing Development and Its Application in Textile Sector of Pakistan—A Theoretical Review." Journal of Service Science and Management 9, no. 03 (2016): 243. 282 Zeb, Hareem, Kashif Rashid, and M. Bilal Javeed. "Influence of Brands on Female Consumer's Buying Behavior in Pakistan." International Journal of Trade, Economics and Finance 2, no. 3 (2011): 225. 283 Azmeh, Shamel, and Khalid Nadvi. "‘Greater Chinese’global production networks in the Middle East: the rise of the Jordanian garment industry." Development and Change 44, no. 6 (2013): 1317-1340. 284 Freud, Sigmund. The ego and the id. WW Norton & Company, 1962. 285 AZIZ, YUSRA. "WHAT ROLE DOES BRANDING AND BRAND AMBASSADORS PLAY IN PROMOTING LAWN?" 286 Azmat, Syed Khurram, Babar Tasneem Shaikh, Waqas Hameed, Mohsina Bilgrami, Ghulam Mustafa, Muhammad Ali, Muhammad Ishaque, Wajahat Hussain, and Aftab Ahmed. "Rates of IUCD discontinuation and its associated

161 ______3.2.2. PRESENCE OF HIGH POTENTIAL TO CRAFT ON FRANCHISES IN PAKISTAN

The brands that we discussed in the above paragraphs that are the called small portion of Pakistani products and also brands287 to offer in the Nationwide and also globally. Pakistan is such a country in which there is present an abundance of talent, a rich and deep culture and long history and also ever expanding the pool of its local entrepreneurs,288 has the great potential and ability to craft many and different international and global level brands.289 The Actual and original potential of Pakistani products is the way very higher as comparison to that we are looking and seeing. But the question why the businesses in Pakistan is not successfully making their names in franchising models especially for foreign brands to establish and to create of their own successful franchises on local level and also abroad. If all the above mentioned, brands and their names have successfully venture outside the Pakistan and also, they created their name in the international market and arena, it is also a question what is the hurdle and hinder from the following suit.290

Surely if some foreign brands have the chance to see the great potential in these markets and also introduce some alien concepts and thoughts and some brands, the Pakistani entrepreneur can automatically and definitely will try their best to tap into the opportunities provided and presented by some increasing appetite of some up and market segment291 for such branded products. No doubt franchising provides and offers such tremendous

factors among the clients of a social franchising network in Pakistan." BMC women's health 12, no. 1 (2012): 8. 287 Tauber, Edward M. "Brand franchise extension: new product benefits from existing brand names." Business Horizons 24, no. 2 (1981): 36-41. 288 Tauber, Edward M. "Brand franchise extension: new product benefits from existing brand names." Business Horizons 24, no. 2 (1981): 36-41. 289 Doherty, Anne Marie. "Market and partner selection processes in international retail franchising." Journal of Business Research 62, no. 5 (2009): 528-534. 290 Rosenbaum, D. B., and P. Rosta. "Four toll roads clear legal hurdles." ENR228, no. 9 (1992). 291 Slater, Stanley F., and John C. Narver. "Does competitive environment moderate the market orientation-performance relationship?" The Journal of Marketing (1994): 46-55.

162 ______business opportunities especially for entrepreneurs for the planning of expending292 their business in both the market local and also international but the problem is this there is need of some reliable partners and also capital.293

3.2.3. FAMILY BUSINESS AND HISTORICALLY DEVELOPMENT

The penchant and trend of established and improved business to keep it solo and not taking it out of the family business294 and this mentality are main hurdle and hindrances in the process of expansion of the franchise model within the Pakistan. Pakistan is such a type of home and also it is very much well-known names in the sector of food295 and also confectionary whose services and deli cases has it services to the many generation. But in spite of this they are feeling shy taking it away from the expansion their business and its types through this process of franchising for one reason the other reasons. 296

The important and major reason not venturing this business is the fair and risk of the food recipes of being stolen by some franchisee. Because of this reason the divulgence of some family secrets297 are under observations. But this fear and terror can be largely elevated by the central packaging and the right combination of some required spices in the form and model of a pre- mix. And after this the dispatching of all such franchised outlets for onward

292 McBride, Julie, and Rehana Ahmed. "Social franchising as a strategy for expanding access to reproductive health services: a case study of the Green Star service delivery network in Pakistan." (2001). 293 Vaishnav, Tushar, and Levant Altinay. "The franchise partner selection process and implications for India." Worldwide Hospitality and Tourism Themes 1, no. 1 (2009): 52-65. 294 Gersick, Kelin E. Generation to generation: Life cycles of the family business. Harvard Business Press, 1997. 295 Gersick, Kelin E. Generation to generation: Life cycles of the family business. Harvard Business Press, 1997. 296 Anttonen, Noora, Mika Tuunanen, and Ilan Alon. "The international business environments of franchising in Russia." Academy of Marketing Science Review 2005 (2005): 1. 297 Kuhn, Annette. Family secrets: Acts of memory and imagination. Verso, 2002.

163 ______preparation of the final product as being finalized and this type of business is called the Student Biryani.298

This thing also ensures the consistency in the state across and aboard all the outlets and many franchisers are supposed also to focus on the controlling especially the apply chain, so that such quality of the food is available in all such location.299

The lake and deficiency of the proper regulatory frame work, government support, limited awareness, technical aspects of the franchising and also complexities that are involved in arranging the financing from banks or the other main reason inhibiting the spread and growth of the franchising ideas and thoughts.300

However, in spite of this, the concept of being franchiser once sets within the domestic echo system,301 the financial institution also can come in the field to play an active role for this purpose of franchising. The credit system of Pakistan also needs that it should be able to accommodate the budding entrepreneurial talent.302 Government is thinking that these easy credit schemes303 can also play a very important and major role hereby the process of including franchising business and option within their options.

In Pakistan, the trends of market304 divulge that the formation of the strong brand and also developing it into the franchising is called a concept and this is here to say. A continuously and permanently emergence of middle

298 Kamal, Raza, Mohammad Zulfiqar Ashraf, and Adnan Ali. "McDonalds Pakistan: Food and Fun Together." Market Forces 9, no. 1 (2014). 299 Ghosh, Avijit, and C. Samuel Craig. "FRANSYS: a franchise distribution system location model." Journal of Retailing 67, no. 4 (1991): 466. 300 Hsiung, Hsin-Hua. "Authentic leadership and employee voice behavior: A multilevel psychological process." Journal of business ethics 107, no. 3 (2012): 349- 361. 301 Henderson, Hazel, and Alan F. Kay. "Introducing competition to the global currency markets." Futures 28, no. 4 (1996): 305-324. 302 Culley, Tom. "Heartening News for Budding Entrepreneurs." Network Journal7, no. 3 Mota, Sue Ann. "Daimlerchrysler v. Cuno-Plaintiffs Lack Standing to Challenge State Franchise Tax Credit in Federal Court, according to the Supreme Court." NC Cent. LJ 29 (2006): 66. (1999): 20. 303 Paul Dana, Leo. "The education and training of entrepreneurs in Asia." Education+ Training 43, no. 8/9 (2001): 405-416. 304 Hackett, Donald W. "The international expansion of US franchise systems: Status and strategies." Journal of International Business Studies (1976): 65-75.

164 ______classes, increases the brand awareness305 among the consumers and the global point of view and also exposure of affluent of youth for emerging trends, while at the exact same time the trend of increasing propensity for shop and eat out also among the populations, it makes the whole franchising and this concept is lucrative. At the same time, the pool of the emerging qualified entrepreneurs and also business graduates with sufficient liquidity at their own disposal for opting to start their ventures, either because of the lack of job opportunities or the sheer urges to set up one business.306

No doubt, franchising is creating different new jobs and also increasing the economic development. The confluence of interest of the business of franchise who may take their right to expand this business in the remote markets. In this way, the franchising is increasing day and night in the market. A wealth of experience, having a sound business, technology, entrepreneurial skills make a man perfect. It is admitted fact, that the sound lucrative, it is very simple and also involves a lot of money and thinking and hard work to make it.307

3.2.4. GLOBAL STEPS FOR THE DEVELOPMENT OF FRANCHISE BUSINESS IN PAKISTAN

Internationally, the franchises generally fall into the following main steps and categories: a) JOB FRANCHISE Mostly a person who is a self-employed, often mobile and also covering domains like the cleaning, mechanic services are also craft are skill related services.308

305 Tauber, Edward M. "Brand franchise extension: new product benefits from existing brand names." Business Horizons 24, no. 2 (1981): 36-41. 306 Muzellec, Laurent, and Mary Lambkin. "Corporate rebranding: destroying, transferring or creating brand equity?" European journal of marketing 40, no. 7/8 (2006): 803-824. 307 DeFrancesco, Laura. "Move over ZFNs: a new technology for genome editing may put the zinc finger nuclease franchise out of business, some believe. Not so fast, say the finger people." Nature biotechnology 29, no. 8 (2011): 681-685. 308 Morrison, Kimberley A. "How franchise job satisfaction and personality affects performance, organizational commitment, franchisor relations, and intention to remain." Journal of Small Business Management 35, no. 3 (1997): 39.

165 ______b) SALES AND DISTRIBUTION FRANCHISE It is concerning the selling and detail about the distribution of products and services in a specific region. c) MANAGEMENT FRANCHISE This is field is about the controlling and also managing a special region with the help of the team of a skilled and semi-skilled staff. d) RETAIL FRANCHISE This field is about selling the products and services from the franchisor by acquiring and obtaining premises and customizing these things to the franchisors specifications, after that hiring and also training of the staff, all the such activities will be done according to the rules and also restrict guidelines of the franchisor.309 e) FOOD AND BEVERAGE FRANCHISES It is very same to the retail franchising but the only difference is this that it is limited only to food and the beverages.310 f) INVESTMENT FRANCHISES Most of such kind of the franchises relates to the field of hostelling industry and in this field the franchisee also oversees the overall strategy, management, progress, while he is hiring others to operate and run the franchise outlet on the day today basis.311

Keeping in view all the kinds and conditions of the franchises the history shows us that all such types are spreading, progressing, promoting and also flourishing in the franchise history of development in Pakistan. And now-a- days all such types of franchise business have their future bright in the Pakistan. It is also growing rapidly. It is also very easy and profitable sector in every field in all walks of life.

309 Morrison, Kimberley A. "How franchise job satisfaction and personality affects performance, organizational commitment, franchisor relations, and intention to remain." Journal of Small Business Management 35, no. 3 (1997): 39. 310 Maxime, Dominique, Michele Marcotte, and Yves Arcand. "Development of eco- efficiency indicators for the Canadian food and beverage industry." Journal of Cleaner Production 14, no. 6 (2006): 636-648. 311 Zupan, Mark A. "Cable franchise renewals: do incumbent firms behave opportunistically?" The RAND Journal of Economics (1989): 473-482.

166 ______g) SUITABLE FRANCHISE MODELS312

It is very necessary to decide first what kind of franchise business do you adopt, because several franchising models and kinds are available in the market. Now it depends upon you what kind of nature, what kind of franchise, what kind of the system and also location do you want to choose? The important models are in the following:

 DIRECT FRANCHISING It is very purest kind of franchising in which the franchisor gives the right to franchisee to open the one franchise business only at one location only.313  AREA DEVELOPMENT In this model, the franchisor grants and gives the franchisee the exclusive and full right to open and also operate the several franchise businesses in a specific geographic territory.314  MASTER FRANCHISING This is very same to the area development, but in this model the franchisee is given the right to sub franchise in a broader and wide territory. But this model is supposed to be employed by the franchisors typically and expanding internationally so that the franchisee can extant and expand this system in those areas who are unfamiliar to the franchisor.315

312 Ngo, Anh D., Dana L. Alden, Nguyen Hang, and Nhuan Dinh. "Developing and launching the government social franchise model of reproductive health care service delivery in Vietnam." Social Marketing Quarterly 15, no. 1 (2009): 71-89. 313 Klein, Benjamin. "The economics of franchise contracts." Journal of Corporate Finance 2, no. 1 (1995): 9-37. 314 Baade, Robert A., and Richard F. Dye. "The impact of stadium and professional sports on metropolitan area development." Growth and change21, no. 2 (1990): 1- 14. 315 Brookes, Maureen, and Angela Roper. "International master franchise agreements: An investigation of control from operational, relational and evolutionary perspectives." European Journal of Marketing 45, no. 7/8 (2011): 1253-1276.

167 ______ JOINT VENTURE FRANCHISE In this field, the franchisor also holds the financial state in all such project, the model is known the more common in an international franchise agreement. 316  FRANCHISING IN CORPORATES317 A WHOLE SET OF BENEFITS

In this business, we can raise our capital by the way of utilizing other capital and to expand our business. It enables the business to enhance and promote its outreach in the quickest possible time and also with minimal funds. The other benefits of the business of franchising are as follows:

 MINIMAL INVESTMENT RISKS/ STUDY SOURCE OF REVENUE In this type, a franchisor is considered an entitled to an upfront payment from the side of franchisee as the franchising fee. The franchisor is also considered to be an entitled to a share from the annual revenue or the profitability of such franchisee on the recurrent basis in the name of royalty (the common royalty in Pakistan is 5-10% of annual revenue). This management also transfers all such risks and cost of the investment to the franchisee also. 318  SIMPLE MANAGEMENT STRUCTURE The interests in this structure of both the parties the franchisor and also franchisee, are very closely intertwined on the success of the business. They depend upon each other in this kind.319

316 Hackett, Donald W. "The international expansion of US franchise systems: Status and strategies." Journal of International Business Studies (1976): 65-75. 317 Lindholm, Richard Wadsworth. The corporate franchise as a basis of taxation. The University of Texas press, 1944. 318 Julian, Scott D., and Gary J. Castrogiovanni. "Franchisor geographic expansion." Journal of Small Business Management 33, no. 2 (1995): 1. 319 Bradach, Jeffrey L. "Using the plural form in the management of restaurant chains." Administrative Science Quarterly (1997): 276-303.

168 ______ RAPID GROWTH WITH BARGAINING POWER In this kind of business, no party has the capital but they try to make their business succeed only by the bargaining with other parties in the market. 320  DEEPER MARKET PENETRATION AND ABSORPTION In this type of business, the franchisee is very well aware of the culture, preferences, likes and dislikes and specific needs of the specific local population. In this way, the huge type of advantage effectively penetrates in a new market and easily get the products absorbed within the such market. 321  GREAT LEVEL OF COMMITMENT BY THE FRANCHISEE In this type, the franchisee is supposed to tend to put his mind, heart and soul in the business to succeed it with the highness of the commitment.322  INTERNATIONAL EXPANSION In this type, the party tries his best to expand his business from local market to international markets so that their business may promote, progress and flourish also.323  FRANCHISNG CARRIES INHERENT RISKS TOO

When a franchise is expanded to the remote areas and market it has many risks and dangers also. Because sometimes it is successful and profitable and sometime it is no successful and non-profitable. Never the less, they try their best to expand their business at the risks of many things in the business.324

320 Argyres, Nicholas S., and Julia Porter Liebeskind. "Contractual commitments, bargaining power, and governance inseparability: Incorporating history into transaction cost theory." Academy of management review 24, no. 1 (1999): 49-63. 321 Preble, John F., Arie Reichel, and Richard C. Hoffman. "Strategic alliances for competitive advantage: evidence from Israel's hospitality and tourism industry." International Journal of Hospitality Management 19, no. 3 (2000): 327- 341. 322 Morrison, Kimberley A. "How franchise job satisfaction and personality affects performance, organizational commitment, franchisor relations, and intention to remain." Journal of Small Business Management 35, no. 3 (1997): 39. 323 Hackett, Donald W. "The international expansion of US franchise systems: Status and strategies." Journal of International Business Studies (1976): 65-75. 324 Sorenson, Olav, and Jesper B. Sørensen. "Finding the right mix: Franchising, organizational learning, and chain performance." Strategic Management Journal 22, no. 6‐7 (2001): 713-724.

169 ______ FRANCHISING IS A COMPLETELY NEW BUSINESS It is very necessary to take cares because it is a very new kind of business in the market so that they can be avoided from the loss and risks. 325  QUALITY CONTROL IS MUST In this type both the parties try to control the activities to enhance the value of the quality in the market. They try to keep the quality according to the international standards. 326  INNOVATION CAN BE DAUNTING All the business centers and places are being innovated regularly by both the parties.327  STRONG DOCUMENTATION IS THE KEY TO A SUSTAINABLE PARTNERSHIP

Documentation is a key to a sustainable and profitable partnership. Without documentation cannot be started. So, all the terms and conditions rules and regulations and each everything should be written with agreement and in clear form so that it may be easy to act upon these terms and condition to succeed, promote, flourish and manage their business rapidly in the market locally and internationally in a very short time in the Pakistan. 328

 FRANCHISING AGENTS HAVE AN IMPORTANT ROLE TO PLAY

A franchising agent is a very important person in this business. Sometimes he plays a very important role because he knows everything about the place, location, culture, language and also about the people of new setup of

325 Solis‐Rodriguez, Vanesa, and Manuel Gonzalez‐Diaz. "How to design franchise contracts: The role of contractual hazards and experience." Journal of Small Business Management 50, no. 4 (2012): 652-677. 326 Gómez, Roberto Sánchez, Isabel Suárez González, and Luis Vazquez Suárez. "Service quality control mechanisms in franchise networks." The Service Industries Journal 31, no. 5 (2011): 713-723. 327 Lewin-Solomons, Shira B. Innovation and authority in franchise systems: an empirical exploration of the plural form. University of Cambridge, 2000. 328 Floyd, Callum, and Graham Fenwick. "Towards a model of franchise system development." International Small Business Journal 17, no. 4 (1999): 32-48.

170 ______franchising. So, the services of such franchising agents that are in the business on advising the companies to succeed their business. 329

 BECOME A BRAND AND EXPAND AS A FRANCHISE

In this type of business, the parties invite the new people to become a member of their business and advise them to expand this to the best of their knowledge. In the country of Pakistan this practice is going on in all the type of business discussed above all the entrepreneurs should study deeply the global environment and should try to reach and increase to the market of the global lines and to the markets of developed countries.330

As the entire western world develops and succeeds like Pakistan in food, it presents a new and unique branch in the market. Pakistan business also do need to think and considered big and also focus on creating their all brand image and then also on building franchises. The secret is very important for the booming franchising and it lies in the strong and big product offering and also a robust and comprehensive network.331 So, concluding all the discussions the Peter F. Ducker says, “Whenever you see a successful business, someone once made a courageous decision.” 332

3.3. CHRONOLOGICAL HISTORY OF FRANCHISE BUSINESS IN PAKISTAN A brief summary of chronological history of Franchise business is given in the following:

329 Emerson, Robert W. "Franchisor's Liablility When Franchisees are Apparent Agents: An Empirical and Policy Analysis of Common Knowledge about Franchising." Hofstra L. Rev. 20 (1991): 609. 330 Goody, Jack. The Oriental, the Ancient and the Primitive: Systems of Marriage and the Family in the Pre-industrial Societies of Eurasia. Cambridge University Press, 1990. 331 Altinay, Levent, and Maureen Brookes. "Factors influencing relationship development in franchise partnerships." Journal of Services Marketing 26, no. 4 (2012): 278-292. 332 Welsh, Dianne HB, Florida Entrepreneur Director, Family Business Center, Peter V. Raven, and Robin B. DiPietro. "A Comparison of Entrepreneurial Traits among Franchisees, Franchisors & Franchise Executives: A Surprising Finding."

171 ______3.3.1 STANDARAD CHATERED BANK Standard Chartered has a long and built up history in Pakistan, opening our first branch in Karachi in 1863. In spite of this, our business was moderately restricted. As of late as 2000, we had just 7 branches in 3 urban communities the nation over.

Today it is an altogether different story. We now have 176 branches crosswise over 41 urban areas and have eager development designs. As at end 2007, add up to incomes remained at PKR 22.3 billion versus PKR 1.1 billion of every 2000, resources were PKR 255.5 billion versus PKR 32 billion and benefit before charge was PKR 4.1 billion versus PKR 251 million.

So, what has prompted this turnaround in SCBP's business?

The year 2006 denoted the start of a noteworthy change for Standard Chartered's operations in Pakistan. It was amid this year that the Bank reported its obtaining of Union Bank, a standout amongst other private division banks in Pakistan.

The US$ 487 million, the biggest ever exchange in Pakistan's keeping money history, initiated the foundation of Standard Chartered Bank (Pakistan) Limited (SCBP), the main worldwide bank in Pakistan to be privately consolidated. The procurement adequately established our position as the biggest and fasted developing global bank in Pakistan: we are presently the fifth biggest bank as far as income and working benefit.

In mid-2007, the joined bank had 115 branches crosswise over 22 urban areas in Pakistan. A year afterward, by mid-2008, the bank has 176 branches crosswise over 41 urban communities. Our geographic impression development has driven the Bank in turning into a piece of the social and monetary texture of the nation, situating us to convey on our vision of "Being the best privately implanted worldwide bank".

We could accomplish our change through:

 Expanded circulation impression  Innovative items and administrations stressing the quality of our universal establishment

172 ______ Business show with a practical methodology for utilizing the establishment situating  Relentless concentrate on determining the advantage of cooperative energies from the obtaining

We have received a multi-pronged approach towards item development. Of our two organizations, Consumer keeping money business concentrates on Wealth Management and the SME parts, utilizing our extended reach. This concentration has earned us "The Best Retail Bank in Pakistan 2007" honor from the Asian Banker Magazine. Discount managing an account business has multiplied through dynamic offering of significant worth included items and dynamic item push among our client portfolio. New items and forceful customer obtaining technique has helped increment our offer of the nation's send out business from 3.48% out of 2006 to 10.3% of every 2007. We have additionally won 10 out of an aggregate of 17 orders for Islãmic Sukuks bringing about being perceived, two years consecutively, through the "Pakistan Deal of the year" grant. It is significant, that after the procurement of the Union Bank by Standard Chartered, numerous outside banks hurried to Pakistan and gained other little and medium measured banks/money related establishments with the plan to extend their system and business in the developing Pakistani market. This has not just prompted huge capital inflows in Pakistan, it has likewise gone about as an impetus for much required combination in the managing an account area. We are glad to have driven the path in keeping money in Pakistan.

173 ______3.3.2 HISTORY OF BATA SHOE ORGANIZATION IN PAKISTAN The organization that advanced into Bata shoe association was first enrolled in the town of ZlinCzechoslovakia on August 24, 1894. It was imaginative from the earliest starting point in that its founders intended the organization to be a "shoe maker". This spoke to a critical flight from the hundreds of years old custom of the limited workshop squeezing out an uncovered subsistence for his family on a Cobbler's seat at home. By 1905 Bata had developed too some 250-organization representatives. At 2200 sets for every day, the personal effectiveness of every Bata worker far surpassed the few sets for each day created by their predecessors. The youthful organization conquer numerous early challenges. I n request to take care of developing demand during the early years, new generation hardware was found in different nations and imaginative show making method were concocted by apt and clever Bata representatives. New sorts of shoes were acquainted utilizing new path with advance them. Bata's notoriety for being the creative industry leader has been, kept up from that point onward. Regardless of the flare-up of the primary world wart material shortages, labor deficiencies, corbels and different difficulties, deals expanded to around two million sets by 1917.The post war economy displayed a troublesome situation for Bata. Money was downgraded and consumer buying influence was at an untouched low. Tomas imagined an arrangement to change in accordance with post war financial troubles by keeping up the emphasis on the client and decreasing the cost of shoe significantly. A tight concentrate on the client had again process itself as a sound technique. Tomas Bata thinking hotel terms of venture into new markets even as a youngster, setting out to Viennato pitch his shoe to the city's traders. While still a youthful organization, Bata sent out shoes to the USA, Europe and North Africa. By 1918 the probability of the organization's 6,000 representatives must be ensured byaggressive showcasing and future outside extension. In the mid 1920's Bata set up new companies in Poland, Yugoslavia, Holland, Denmark, the unified kingdom and the USA. In the early 1930's Bata and Czechoslovakia were the main footwear trades in the whole world. Bata additionally make organizations

174 ______while gave the groups rail administrations, building construction, Insurance, distributing and new tannery.To all Bata organizations was connected the Bata framework one of its most barren and innovative elements was the courses of action of self-sufficient workshop through which all representatives were given the chance to contribute thoughts and to know in correct figures how this personal day to day accomplishments would specifically influence productivity of their areas of expertise. Remuneration was with finish control of their own financial fate

3.3.3 PAKISTAN BEVERAGE LIMITED On the fourteenth of August 1950, saturated with the enthusiasm of patriotism, a standout amongst the most unique drink producers in Pakistan was conceived. This youthful association at that point propelled Pakistan's first nearby carbonated soda pop (CSD) mark, Pakola, which is presently particularly conspicuous. Set up in the core of Karachi's Lawrence Road, on a 1000 square yard plot, this sprouting organization has since bloomed into the biggest drink assembling and offering organization in Pakistan. This is the account of Pakistan Beverage Limited (PBL).

In the years following its beginning, PBL conquered many difficulties, in the long run turning into the market pioneer in drink fabricating. It was this stellar execution and sense of duty regarding quality items, that welcomed the consideration of numerous multinational organizations searching for an accomplice in Pakistan. This made ready for PBL to get an establishment permit from Pepsi Co, enabling PBL to end up noticeably a Pepsi-Cola packaging accomplice in 1979.

PBL kept on exceeding expectations as a Pepsi-Cola Bottling Partner in the years that took after. Under the vigorous initiative of its CEO and overseeing executive, Mr Yasin Haji Kassam, his sibling and chief Mr Siraj Kassam Teli, and his child, Mr Zaid Yasin, PBL has possessed the capacity to achieve gigantic statures, for example, turning into PepsiCo's 2015 Global Bottler of the Year, winning this pined for title out of more than 100 PepsiCo bottlers comprehensively. PBL likewise turned into the main establishment in Pakistan to create and offer 100 million cases (8 oz.) of Liquid Refreshment

175 ______Beverages (LRB). With the current enlistment of Mr Nusair Siraj Teli, PBL is ready to seek after and accomplish significantly more prominent statures.

3.3.4 COCA-COLA PAKISTAN Coca-Cola Pakistan entered the Pakistani market in 1953, with the primary plant being set up in Karachi. For quite a long while, the packaging operations were directed by free franchisees. At that point in 1996, Coca- Cola Beverages Pakistan Limited (CCBPL) was built up to obtain all the packaging plants and work these to the most astounding models of value for which Coca-Cola is outstanding, all through the world. The obtaining procedure was finished in 2006 and CCBPL along these lines turned into the sole association holding all assembling and offering rights of Coca-Cola items in Pakistan.

CCBPL assumes a key part in keeping up the quality, guaranteeing accessibility and driving the offers of all Coca-Cola brands promoted in Pakistan. Toward the finish of 2013 it was working 6 packaging plants and 13 stockrooms all through the nation, serving a populace of more than 180 million individuals through a broad system of merchants, retailers and key records. As of now just about half offers, alongside administration privileges of CCBPL lie with Coca-Cola Içecek (CCI), the 6th largest Coca-Cola bottler on the planet. CCI has a nearness in 10 nations including Azerbaijan, Iraq, Jordan, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey and Turkmenistan.

CBPL in this manner fabricates, bundles, stocks and appropriates the delivered marked refreshments. As the packaging organization, CCBPL is likewise in charge of creating nearby systems, with the goal that the final result achieves the shopper in its best quality. This incorporates client improvement, showcase speculation, arrange accumulation, conveyance and ultimately money gathering.

3.3.5 THE PIZZA HOVEL STORY STARTS IN MAY 1958 Dan and Frank Carney opened their 55D-square foot pizza eatery in Wichita Kanassa. Dan and Frank with companion Richard Beemer and Jhon Bender made the pizza themselves. Straight to the point rolled the batter noticeable

176 ______all around from the pit tin. Dan flipped the pie from the tin amid the preparing procedure. Dan Carney reviewed. The general population were charmed with the item watching us hurling the batter over our heads. They were truly having a ball. The thought got on. A moment pizza cabin opened in December 1958 in downtown Wichita. By 1963 there were forty-two pizza cottage eateries.

The principal Pizza cottage eatery in Pakistan was opened in December 1993 and overwhelmed the culinary scene from that time towards. The advancement of the general public all in all. It is in charge of making openings for work for the young of the nation both straightforwardly and in addition in a roundabout way. Besides Pizz cabin amid the center of its reality has bit by bit helped in the improvement of different neighborhood providers who has necessities need to supply nourishment staff equal in quality to the worldwide sustenance benchmarks. In such manner our eatery network has turned out to be a noteworthy benefactor towards the advance of the Pakistani nourishment industry overall by getting to a point where they would now be able to anticipate applying their things to different chains and also the worldwide market.

3.3.6 OCS COURIER CAMPNAY OCS worldwide is among the best messenger organizations in Pakistan. More than 45000 individuals are working at 250 stations in 210 nations everywhere throughout the world. OCS Pakistan (Pvt) Ltd established its framework in Karachi on May 23 rd, 1986. It has been managing a great many shipments and reports each month. There are 10 zonal focuses, 40 branches, 250 express focuses, and more than 2500 conveyance channels all finished Pakistan. The administrations incorporate local overnight, second day, same day, hand convey, and brilliant load express alongside mass shipments, send out/import administrations, understudy bundle, shrewd box, time bound administrations, street & rail administrations, and Sunday & occasion administrations. It was as of late gain by M&P messengers. You may follow OCS/M&p establishments through them.

177 ______While putting potential capital in gaining an OCS establishment, an underlying eminence installment is to be paid to acquire the privilege to business. Starting there, the establishment will all around pay an advancing power portion, either on a month to month or quarterly preface. This portion is regularly found out as a rate of its gross turnover. After the understanding between the concerned gatherings is marked, the establishment will be opened under a similar business name. The franchisee won't have incomparable control over the business as he or she would over their own, be that as it may, may benefit by placing assets into an authoritatively settled brand. Generally, the franchiser will require that the arrangement of activity continue as before. For instance, logos, business techniques, outfits.

3.3.7 GLORIA JEAN'S COFFEE'S Gloria Jean's Coffee started operation in Pakistan in 2007.Today it is by a wide margin the Largest global espresso chain in the nation with more than 30 outlets in more than 12 urban communities. Our prosperity has been helped by dedicated submitted establishment accomplices, who share our energy for good espresso.

Gloria Jean's Coffee is by a wide margin the Largest global espresso chain in Pakistan. Our demonstrated plan of action and emotionally supportive network have been culminated more than 1o years of operations in this nation. Amid the time we have constructed an accomplished and very gifted encouraging group of people to biggest global espresso chain in the nation with more than 30 outlets in more than 12 urban communities. Our prosperity has been helped by persevering submitted establishment accomplices. Who share our enthusiasm for good express?

3.3.8 P AND G

P and G case of defeating difficulty in Pakistan KARACHI, Dec 10: Pakistan includes unmistakable position on the wander guide of a fundamental client stock association, Procter and Gamble. The creature US firm declined to allow negatives to affect their business procedure in Pakistan.

178 ______"We have had an average continue running in this country so we have picked Pakistan as a key objective in the district for exercises to concrete the association's increments", Werner Geissler, unfortunate propensity official Global Operations, P&G, told Dawn in a short select meeting in Karachi. He was in the city seven days back to go to start of the second collecting plant of the association in Pakistan.

Commenting on close execution of Pakistan in the region as the best authority yielded that his association's execution in the country has been more promising than other South Asian countries.

"Our dollar bargain per head in Pakistan is higher than India however to some degree not as much as China. In any case, this isn't the way by which we benchmark our execution. We profile grandstands in term of potential and the degree of the association. In Pakistan we see gigantic future for our association as there is still space for advancement in singular use of most of its 170 million people".

The association is extraordinary in Pakistan through its various customer thing marks, broadcasted extensively all around the country. The authority declined to uncover the genuine quantum of the association's arrangements in Pakistan yet certified its push to 570,000 retail outlets in the country where the retail division posted solid improvement with little regard to declared demoralizing financial pointers.

The total number of shops that the association intends to cover in future could in like manner not be given by the authority or the adjacent staff present on the occasion.

"We don't scatter country insightful arrangement figures yet I can reveal to you that we are significantly propelled by the execution of our gathering in Pakistan. Actually, our Pakistan aggregate is solid to the point that it has in like manner been supporting work to our overall operations. No under 50 P&G work power of Pakistani reason are serving at tried and true positions in various parts of the world", the authority communicated. Sunrise Reacting to a request as for the thin creation base of the association in the country he said that the association starting at now has two gathering units in Pakistan

179 ______of total 140 plants far and wide. "Most creating markets don't have any plant and are managed on imports", Geissler told.

"Pakistan acknowledges ideal position of tremendous customer base, dynamic P&G gathering and favorable execution record of the association, so it is senseless to disregard it in the localization of creation arrangement of the association", he included.

"The association acquired a site at Port Qasim, where our starting late started dress plant included hardly 20 for every penny of the district. Along these lines, site is presently available when and if the association sets up all the all the more gathering plants in Pakistan", Geissler said.

The parent association of P&G Pakistan posted net offers of $78.9 billion out of 2010 up from $76.7 billion out of 2009, the home site of the association shows up. The debilitated net winning per ordinary offer in 2010 was $4.11 and the benefit is had all the earmarks of being $1.15 per fundamental offer in the midst of the present year.

3.4 FRANCHISING IN EDUCATION SECTOR: ANALYTICAL REVIEW 3.4.1 PROLUSION TO EDUCATION: In simple words Education may be defined as a process by which we can obtain some knowledge of any kind. But the comprehensive definition of Education is the following:

‘’education is the process of facilitating learning, or the acquisition of knowledge, skills, values, beliefs, and habits. Educational methods include storytelling, discussion, teaching, training, and direct research. Education frequently takes place under the guidance of educators, but learners may also educate themselves.’’333

3.4.2 TYPES OF EDUCATION: There are two main types of education:

333 Suzuki, Bob H. "Curriculum transformation for multicultural education." Education and urban society 16, no. 3 (1984): 294-322.

180 ______a) FORMAL EDUCATION b) INFORMAL EDUCATION a) FORMAL EDUCATION: It may be defined as a type of education that is called classroom-based education. It is provided the skilled and trained teachers.334 b) INFORMAL EDUCATION: It may be defined as a type of education which happens outside the classroom, in after-school programs, community-based organizations, museums, libraries, or at home.335 3.4.3 SYSTEM OF EDUCATION IN PAKISTAN An extremely short depiction of instruction framework in Pakistan is as following:

Training in Pakistan is thought to be administered by the Federal Ministry of Pakistan Education and furthermore the commonplace governments. The government is assumed generally to give its help with educational programs advancement, additionally accreditation and in the field of financing of research and furthermore improvement. As indicated by the law, Article 25- An of the Constitution of Pakistan obligates the state to oversee and give the free and obligatory sort quality instruction to the offspring of the condition of the age gather 3 years to 16 years. 336

"The State might give free and necessary training to all offspring of the age of five to sixteen years in such a way as might be dictated by law".337

334 Davis, Dave, Mary Ann Thomson O'brien, Nick Freemantle, Fredric M. Wolf, Paul Mazmanian, and Anne Taylor-Vaisey. "Impact of formal continuing medical education: do conferences, workshops, rounds, and other traditional continuing education activities change physician behavior or health care outcomes?." Jama 282, no. 9 (1999): 867-874. 335 Marsick, Victoria J., and Karen Watkins. Informal and Incidental Learning in the Workplace (Routledge Revivals). Routledge, 2015. 336 Mughal, Justice R. Dr, and Munir Ahmad. "Education System in Pakistan." (2011). 337 Jimenez, Benedict Salazar. "Fiscal stress and the allocation of expenditure responsibilities between state and local governments: An exploratory study." State and Local Government Review 41, no. 2 (2009): 81-94.

181 ______The instruction framework in Pakistan is for the most part isolated into six levels: Preschool (for the age from 3 to 5 years); essential (grades one through five); center (grades six through eight); high (grades nine and ten, prompting the Secondary School Certificate or SSC); transitional (grades eleven and twelve, prompting a Higher Secondary School Certificate or HSSC); and college programs prompting undergrad and graduate degrees. 338

3.4.4 THE EMERGENCE OF FRANCHISING IN THE EDUCATION SECTOR

In this regard, it is suitable and expedient to name important type of franchising that is known as Business-format franchising and also simply known as only “FRANCHISING. “This business has been booming in different and most of the developed and also in developing countries all over the world. Similarly, it has also been spreading and growing in different activities such as retailing and services and now in very most recent time it is growing rapidly in the social sector. Furthermore, a great interest is seen in the real application of all the principles of this kind of franchising in the sectors of healthcare, energy provision, water purification and also in Education in the countries of Africa, Asian countries and South American countries. 339

This franchising is a part of boarder and greater research program and it is considered to be dedicated especially to the franchising in the field of social sector. In this program, we have to investigate that to what extent and to what level this type of franchising is being researched and worked in a social area especially such as education sector. Now for such type of empirical research340 we have to focus our point especially on the Pakistani market.

338 Saeed, Muhammad. "Education System of Pakistan and the UK: Comparisons in Context to Inter-provincial and Inter-Countries Reflections." Bulletin of Education & Research 29, no. 2 (2007): 43-57. 339 Rhim, Lauren Morando. "Franchising Public Education: A Study of the Linkage of Charter Schools and Private Education Management Companies in Massachusetts." (1998). 340 Ajzen, Icek, and Martin Fishbein. "Attitude-behavior relations: A theoretical analysis and review of empirical research." Psychological bulletin 84, no. 5 (1977): 888.

182 ______So, we gathered and collected all the secondary data and also discovered the importance of this franchising particularly in the education sector of Pakistan.341 So, after working in this research the result is this “22 franchised schools and chains from the elementary to high school, with the total brands of 3573 branded schools and it is mentioned and known that 1233700 students are enrolled in such branded schools. From such established schools, some important and famous chains of established schools are the following:

The educators have its own name in these fields. It has 700 franchised campuses. There are 212 branches of this school in 212 cities and villages. And the strength of the students is 17500. The Allied school is also very known in this field. It has 730 franchising. These campuses are spread into 243 cities and different villages. The number of students of these campuses 195000. Dar-e-Arqam is another famous name of this field. It has 525 franchise campuses. These campuses are working in 164 cities and villages. The total numbers of students of all the campuses is 150000. To advance in research we have to examine all the facts and figures of such franchised institutions in the social sector especially. So that every person may know and understand the positive and negative points of this business and to know some knowledge about the future and then they decide whether they should adopt this type of business or not. 342

The emergence343 and coming up of such franchising in the sectors of education is supposed the result of all the limits of the public-school system and accepted the lack of resources. A well-known franchisee support and explain that “the success of franchise network is obvious, because (the franchises) use (Their) resources, i.e. faculty and funds, etc. efficiently.”

341 Alderman, Geoffrey. "The globalization of higher education: Some observations regarding the free market and the national interest." Higher Education in Europe 26, no. 1 (2001): 47-52. 342 Goldring, Rebecca, Lucinda Gray, and Amy Bitterman. "Characteristics of Public and Private Elementary and Secondary School Teachers in the United States: Results from the 2011-12 Schools and Staffing Survey. First Look. NCES 2013-314." National Center for Education Statistics (2013). 343 Altbach, Philip G., and Jane Knight. "The internationalization of higher education: Motivations and realities." Journal of studies in international education 11, no. 3-4 (2007): 290-305.

183 ______344Another student also explained the definition as, “if (he) compares franchised schools with public school, without any doubt franchised chain are far better than public one’s schools.”345 In addition to these a parent of the students also declared the definition of franchise school, “(he) prefers franchised chains346 for his children because they offer excellent teaching services at a low-cost fee which is indeed a very a very attractive feature for all the parents. They use an impressive advanced teaching and learning techniques that public schools are not using at all. ``347

3.4.5 THE SOCIAL DIMENSION OF FRANCHISING IN THE EDUCATION SECTOR

First of all, this type of franchising provides the benefits for the society as a collective unit in this connection a student asserted about the definition of this franchising is that, “franchisors motivate their parents to educate their children’s through T.V advertisements. They (i.e. franchisors) are promoting education in our society.” 348Similarly, a franchisee also dilated upon this topic as thinking it a benefit of such franchising than explain that, “now the poor segments of (his) society, like drivers and vegetable seller, can also get quality education for their children. The improvement is that now their children are studying together with other children’s this will reduce the problem in the society.” 349

344 Bridge, Freda, Roy Fisher, and Keith Webb. "From Franchise Network to Consortium: the evolution and operation of a new kind of further and higher education partnership." Journal of vocational education and training 55, no. 3 (2003): 301-318. 345 Scott, Janelle. "The politics of venture philanthropy in charter school policy and advocacy." Educational Policy 23, no. 1 (2009): 106-136. 346 Sorenson, Olav, and Jesper B. Sørensen. "Finding the right mix: Franchising, organizational learning, and chain performance." Strategic Management Journal 22, no. 6‐7 (2001): 713-724. 347 Torres, Arturo. "MacCrate Goes to Law School: An Annotated Bibliography of Methods for Teaching Lawyering Skills in the Classroom." (1998). 348 Ford, Ramona. "The McDonaldization of Society: An investigation into the changing character of contemporary social life." Clinical Sociology Review12, no. 1 (1994): 25. 349 Anderson, Jamie, and Martin Kupp. "Serving the poor: drivers of business model innovation in mobile." info 10, no. 1 (2008): 5-12.

184 ______Moreover, franchise business is also known and shown to add an increase of the literacy rates, above all these things in all the rural areas. For example, a franchisee discussed in detail the definition of this topic as, “This is a very important advantage. The same quality of education is provided to remote areas and additionally extra expenses (are saved by these people). (They are) provided with good teachers, good administration, good course notes. It is such a blessing to get all these quality services on the doorstep.” 350Similarly, a franchisee also explained the benefit of this quality education for girls, “especially for girls,351 as it is more difficult for to travel daily or move to some other city, that it a social welfare for people.352

Finally, franchising is a way of job opportunities for both the parties i.e. entrepreneurs these called franchises as well the teachers who will be called employed by such franchised school. There is an example of such school that we interviewed in which 34 teachers were present. About this fact an employ gave his statement, “franchise networks have swiftly improved and promoted educational facilities for students. They have offered viable business opportunities for local investors to open a franchised campus and they are also offering better employment opportunities for teachers.”353

3.4.6 THE BASIC PRINCIPLES OF FRANCHISING

Franchise business in the education sector is very useful business and it is called a social dimension also. But on the other hand, there is also great respect for all the basic principles of the business in franchising for example brand name, assistance and the know-how. When a party wants to commence the brand name, the parent of a student told us about the fact, “brand name is very important for me. It helps me to measure the level of

350 Grosse, Robert N., and Christopher Auffrey. "Literacy and health status in developing countries." Annual review of public health 10, no. 1 (1989): 281-297. 351 Davin, Anna. "‘Mind That You Do as You Are Told’: Reading Books for Board School Girls, 1870-1902." Feminist Review 3, no. 1 (1979): 89-98. 352 Le Grand, Julian, and Will Bartlett. "Quasi-markets and social policy: the way forward?" In Quasi-markets and social policy, pp. 202-220. Palgrave Macmillan UK, 1993. 353 Tuunanen, Mika, and Kimmo Hyrsky. "Entrepreneurial paradoxes in business format franchising: an empirical survey of Finnish franchisees." International Small Business Journal 19, no. 4 (2001): 47-62.

185 ______school services. In addition to this, when my children see T.V advertisement about their schools, they get excited. I think the brand name has many positive impacts.”354 Similarly, in the case of know-how the explanation of the franchisee is given in the following lines, “They (i.e. franchisers staff) offered (him) various session of training and workshops to learn know-how of the network. They have a special training. All franchisees have to attempt an extensive initial training of about two weeks.”355 In the case of assistance, a franchisee accepted this fact and said that, “(he) had no experience in the education business. (His) franchiser and his staff shared with (him) all kinds of information about how to start a school. They visited (his) location and suggested (that he) offers small classes at the start. They helped (him) in hiring (his) principle. Until today, (he is) in touch with them regularly. They send (him) monthly lessons and activities plans and (he) just (has) to follow their guidelines.” He concluded this point from this assistance that it is “easy for (him) to run (his) business.” 356

There is another master key of elements of the business of such franchising are also presented and available in these educational chains.357 A man who was interviewed by us he stressed and pin pointed the quality of system and he explained in these words, “Quality of education firstly demands upon quality of teachers and secondly depends upon establishing appropriate monitoring of the overall system.” He said that he believes completely that “chains concentrate on both aspects” and he considered and thought that “teachers are well train and children’s have asses to all basic facilities.”358

354 Tauber, Edward M. "Brand franchise extension: new product benefits from existing brand names." Business Horizons 24, no. 2 (1981): 36-41. 355 Simonin, Bernard L. "Transfer of marketing know-how in international strategic alliances: An empirical investigation of the role and antecedents of knowledge ambiguity." Journal of International business studies 30, no. 3 (1999): 463-490. 356 Chiou, Jyh‐Shen, Chia‐Hung Hsieh, and Ching‐Hsien Yang. "The effect of franchisors’ communication, service assistance, and competitive advantage on franchisees’ intentions to remain in the franchise system." Journal of Small Business Management 42, no. 1 (2004): 19-36. 357 Solis-Rodriguez, Vanesa, and Manuel Gonzalez-Diaz. "Provisions to be negotiated in franchise contracts: the case of Spanish chains." Journal of Business Administration 358 Kanji, Gopal K., Abdul Malek, and Bin A. Tambi. "Total quality management in UK higher education institutions." Total Quality Management 10, no. 1 (1999): 129-153.

186 ______Furthermore, the price that the franchised school charges are considered and recognized affordable for most people. In this connection, a parent of the student explains, “fees in franchised schools are low and quality of education is satisfactory. For the parents who cannot even afford to pay these reasonable fees, franchisee offers them a fee reduction. Personally, I am satisfied with the fee structure of the school and also with its services.”359 The next problem is uniformity that is very important, franchisers pay attention to it not only in terms of the building and equipment, but also in the term of teaching, using according to an employ, “the same books as even the same lessons across Pakistan.” 360

Finally, the business of such type focuses these lines and chains has been pin pointed especially by the franchisee who said, “I watched a brand name advertisement on Television. I found it very interesting that the new concept had started in Pakistan, so I decided to get initial information about it. When I got information on it, it attracted me and finally I decided to buy a (brand name) franchise.”361 The other fact, that the franchises sometimes investors, “most of the time, franchisees are not running their schools. They hire principles. I have only seen two school campuses franchisees are operating them themselves.”362 And the third objective is of making good profit about it he said, “I think it more about making profit we concentrate on profit. Obviously, it is natural. We have to focus over margins first.”363

359 Aurini, Janice, and Scott Davies. "The transformation of private tutoring: Education in a franchise form." The Canadian Journal of Sociology 29, no. 3 (2004): 419-438. 360 Campbell, Dennis, Srikant M. Datar, and Tatiana Sandino. "Organizational design and control across multiple markets: The case of franchising in the convenience store industry." The Accounting Review 84, no. 6 (2009): 1749-1779. 361 Meyer, Heinz‐Dieter. "Local control as a mechanism of colonization of public education in the United States." Educational Philosophy and Theory 42, no. 8 (2010): 830-845. 362 Armstrong, Lloyd. "Competing in the global higher education marketplace: Outsourcing, twinning, and franchising." New Directions for Higher Education 2007, no. 140 (2007): 131-138. 363 Newman, Frank, and Lara K. Couturier. Trading public good in the higher education market. London: Observatory on Borderless Higher Education, 2002.

187 ______3.4.7 THE PERSPECTIVES AND CHALLENGES FOR FRANCHISERS AND FRANCHISEES IN THE EDUCATION SECTOR

There are so many perspectives for the franchise chains and they are also called endless and in this perspective over respondent also highlighted it as, “franchising is an interesting concept for everyone. It is successful in Pakistan. I think other countries that are facing problems in terms of education should also adopt franchising. I am sure these franchised schools will grow and never close.”364 In this connection the students, “franchising will grow because it is a solution to our social pain. Our government must support these educational groups because they have experience and potential for the future. They must be encouraged to our society.”365 A parent is also saying something about this, “the franchise sector is progressing in Pakistan. I expect that the development of the education sector in the future will be through franchising, because franchised schools offer low fees, scholarships and quality in educational services, which the government is unable to offer.”366 There is also an opinion of an employee of this think, “franchising should grow in the future. I have the great demand because middle and low-income classes have no other solutions. No one is expecting an improvement in public schools. The private school sectors are out of reach for most of us. ``367 Then who will deliver education to over children. ``The answer is this there are only franchised networks that are successful

364 Navrud, Ståle, and Richard C. Ready, eds. Valuing cultural heritage: Applying environmental valuation techniques to historic buildings, monuments and artifacts. Edward Elgar Publishing, 2002. 365 Ngo, Anh D., Dana L. Alden, Nguyen Hang, and Nhuan Dinh. "Developing and launching the government social franchise model of reproductive health care service delivery in Vietnam." Social Marketing Quarterly 15, no. 1 (2009): 71-89. 366 Dahlstrom, Robert, and Arne Nygaard. "An empirical investigation of ex post transaction costs in franchised distribution channels." Journal of marketing Research (1999): 160-170. 367 de Sousa, Monica Teixeira. "A Race to the Bottom-President Obama's Incomplete and Conservative Strategy for Reforming Education in Struggling Schools or the Perils of Ignoring Poverty." Stetson L. Rev. 39 (2009): 629.

188 ______in providing education. This business model is already successful in the market and it is now widely accepted by over public”368 (A franchisor).

The numbers of challenges of such chains are very quiet and similar to those problems that are faced by franchisors in different traditional sectors such as adopting the concept to local market, facing increasing competition and selecting the right franchisees and the right teachers. Another particular challenge with which they find the balance between the commercial and social goals. Such types of social goals will not overshadow the such basic and important principles of franchising and such business-orientation. Franchisors and as well as all the franchisees who want to succeed and promote in social sector, they will have to strictly implement and apply and respect the principles of such franchising if they want to get and achieve their social goals and objectives in a sustainable way and process and with the help of a long term and comprehensive perspective.369

3.4.8 COMMENTS ABOUT DR. ROZENN

Dr. Rozenn Perrigot370 is an Associate Professor at the Graduate School of Management (IGR-IAE Rennes) – University of Rennes 1-France. She is also the Director of the Center in Franchising, Retail, & Service Chains. The aim and object of this chain is to collect and bring the number of the researchers, the students, and also some professionals under the shadow of Franchising, about retail and then service chains. In this school, the basic information is imparting to all the individuals about issues and problems about the concerned sectors. She also tries to generate synergies among them with the help of global method so that they may control such issues and problems easily. The main activities of the Center are supported by the

368 Stary, Chris. "Transfer of Learnings between Disciplines: What S-BPM Facilitators Could Ask Progressive Educators (and might not dare to do)." In International Conference on Universal Access in Human-Computer Interaction, pp. 431-442. Springer, Cham, 2014. 369 Lehr, Camilla A., and Cheryl M. Lange. "Alternative schools serving students with and without disabilities: What are the current issues and challenges?" Preventing School Failure: Alternative Education for Children and Youth 47, no. 2 (2003): 59-65. 370 Piot-Lepetit, Isabelle, Rozenn Perrigot, and Gérard Cliquet. "Organizational form and efficiency of franchise chains." International journal of retail & distribution management 42, no. 7 (2014): 671-684.

189 ______group of corporate partners. The education, its importance, its research, its values in social sector, its transactions and its quality in the life of humanity are the makeable, recognizable, and appreciable activities of the Center. Her 30 papers have been published in international peer-reviews. She has used Business approaches (about entrepreneurship, the management, the marketing, the organizational behavior, the strategy), also Economics approaches (the industrial economics, the digital economics), and also Law approaches (the competition law, the contract law). She has also attended and presented almost over 60 communications international conferences on the franchising. She is also the Secretary of the International Society of Franchising. She has also got chances to lead the several and different type of research contracts an agency that is called the French National Research Agency and the French Franchise Federation, etc. her recent and latest research work is dealing with different aspects of franchising:

 Micro and social franchising  Franchising in Africa  Organizational forms (franchising, company ownership, plural form, multi-unit franchising)  Chain management (organizational and technical know-how, franchisor and franchisee relationship, franchisee behavior)  Chain marketing (communication on websites, on social media, on activities linked to corporate social responsibility, customer satisfaction)  Chain development (franchisor communication to attract new franchisee)  Chain strategy (E-commerce, internationalization)  Unit and chain performance (financial and non-financial performance, efficiency, survival or failure)  Conflicts within chains (European regulation, risk of reclassification of franchise contract). 371

371 Hendrikse, George WJ, Mika Tuunanen, Josef Windsperger, and Gérard Cliquet, eds. Strategy and governance of networks: cooperatives, franchising, and strategic alliances. Springer Science & Business Media, 2008.

190 ______3.4.9 PUNJAB GROUP OF COLLEGES AND TRANCHISING IN EDUCATION The Punjab Group of Colleges (which is also known as The Punjab Group) i.e. (PGC)has its deep roots in the set-up of a Commerce College. The worthy chairman of PGC all networks is known as Main Amir Mahmud. The foundation of the Network was laid down in the city of Lahore in 1985. Over the period of previous and last 31 years, the PGC has supposed to become the Largest Educational Network in the country of Pakistan. The head office the PGC is in 64-E/1, Gulberg III, Lahore, Pakistan. The inception of the PGC as a prominent educational network, no doubt, is providing quality education in Pakistan. it has led to various significant developments. It has worked wonders in achieving academic excellence almost at all levels, while, on the other hand, the PGC is trying its best to shaping the future of all its students.372

The Family of PGC is consisting of Educational Excellence Limited, National Communications Services (SMC-Pvt.) Limited and Tower Technologies (Pvt.) Limited, which is a hi-tech company of the Group which is considered to provide technical expertise and also tailor-made IT solutions. National Educational Network (Pvt.) Limited, is taking serious care and also serious steps of Franchising Elementary, also Secondary and also Higher Secondary Education out and across the country in the different forms of Schools and Colleges.373

So, in the field of Franchising in Education, THE PGC is playing a very important and pivotal role to enhance and to Impart of all kinds of education to all the people at their threshold. It also provides the useful, comprehensive, complete, and also technical instructions and guidance’s to the people who have interest to get information’s about franchising in education. Therefore, there are so many important projects that are not the

372 Shah, Nirali M., Wenjuan Wang, and David M. Bishai. "Comparing private sector family planning services to government and NGO services in Ethiopia and Pakistan: how do social franchises compare across quality, equity and cost?" Health policy and planning 26, no. suppl_1 (2011): i63-i71. 373 Andrabi, Tahir, Jishnu Das, and Asim Ijaz Khwaja. "A dime a day: The possibilities and limits of private schooling in Pakistan." Comparative Education Review 52, no. 3 (2008): 329-355.

191 ______permanent part of PGC, but they running, promoting, flourishing, progressing and also promoting in the sense of Franchising in Education.374 The name of those projects which are working in this field, are as under:

 CAPITAL UNIVERSITY OF SCIENCE & TECHNOLOGY (CUST), IslãmABAD

 MUHAMMAD ALI JINAH UNIVESITY (MAJU), KARACHI

 UNIVRSITY OF CENTRAL PUNJAB (UCP)

 330 COLLEGE CAMPUSES

 15 RESOURCE ACADEMIA SCHOOLS

 700 PLUS ALLIED SCHOOLS

 300 EFA SCHOOLS375

3.4.10 BEACONHOUSE SCHOOL SYSTEM AND FRANCHISING IN EDUCATION The Beaconhouse School System is one of the largest private school networks in the world. Established in November 1975 as the Los Angles’ Montessori Academy for toddlers, Beacon house has since grown into a global network of private schools, institutes, and universities, giving education to over 274,000 students from pre-school to post- graduation. Many of these student’s study at the group's flagship network, the Beacon House School System, while others are enrolled at The Educators, a parallel school network operated by the group.376

Beacon house School System has now grown into an international company with independent division Belgium, Malaysia, Oman, Pakistan, the Philippines, Thailand, the UAE and the United Kingdom. Its activities

374 Kim, Jooseop, Harold Alderman, and Peter F. Orazem. "Can private school subsidies increase enrollment for the poor? The Quetta Urban Fellowship Program." The World Bank Economic Review 13, no. 3 (1999): 443-465. 375 Mahmood, Khalid. "A comparison between needed competencies of academic librarians and LIS curricula in Pakistan." The electronic library 21, no. 2 (2003): 99-109. 376 Bashir, Sakina, Khalid Mahmood, and Farzana Shafique. "Internet use among university students: a survey in University of the Punjab, Lahore." Pakistan Journal of Information Management & Libraries (PJIM&L) 9, no. 1 (2016).

192 ______extend beyond education in some countries.377 Most of its branches are located in Pakistan with 30 branches throughout the country. a) CAMPUSES NETWORK  Abbottabad  Faisalabad  Karachi  Lahore  Islãmabad  Peshawar  Rawalpindi378 3.4.11 THE EDUCATOR SCHOOL SYSTEM AND FRANCHISING IN EDUCAION

The educator school system is the project of Beacon house school system. This school offers the franchises anywhere in Pakistan. So, it means if a person wants to acquire the franchise of this school he can be part of this school in Asia. It is very interesting at by the year of 2010 the Educator was not so popular but after this year the popularity and interest was seen in the field. Now the question is this if a person willing to start the franchise of Educator school how he will start and open the branch? How will he investment spend and how he estimates the cost and return from the investment. So, the process is this in the private sector of school system is Pakistan; educator is the largest chain is considered of the preschools in Asia. There are 9 hundred franchises schools of this system in almost in 33 cities of the country. That is why in the year of 2010 it was considered the franchiser of Pakistan of that year almost in the entire sector. It was also considered and thought the best and famous education franchise in Pakistan and as well as aboard. So, after that time of the inception, this system of school started to gain and collect the good, excellent and favorable return and profit because of his mark able and mentionable success in all over the

377 Dahlke, H. Otto. "Determinants of sociometric relations among children in the elementary school." Sociometry 16, no. 4 (1953): 327-338. 378 Hassan, M. K. M. "Recruitment & selection process of BEACONHOUSE school system." (2014).

193 ______country. One reason of its success is the fee structure that is affordable for all the students. According to an estimate 10 thousand child of this school system are being given training by Educator in the entire center. Those centers deliver and produced 2 million successful students every year. So, that is why this system is progressing in the field of franchising education school by leaps and bounds. 379

According to a rough estimate almost 250 new partners joint this system of franchising every year. It is also said that the growth of this system in franchising field is the fastest and greatest in country. So, if a person wants to start the franchise of this school the investment is not required so much. The simple way is this if you are interested you should apply on a proper form with proper information. It is fact, this is a great opportunity for a people if he can and has interest to adopt it. The range of the cost of the educator franchise touches the rupees 15 to 30 lacks only. In addition to this the area is required for a branch is 2500 square feet. It is very satisfactory for all the people that only one and first year of the franchising is somewhat difficult for the franchisor but after that he can get the return on his investment invested in franchising is considered 200% during the time of just 4year. No doubt no guaranty and assurance of good performance is given to the unit franchisee but it is the responsibility to make the progress, performance good and satisfactory of a franchisee. On the other hand, it is a good business now- a-days in an unstable economic condition of the country only by investing by 10 lac rupees. This school system provides and awards the exclusive rights of territory and also guidance and good rule to start the new branches. Generally, the agreement is made for 4years but it can be renewed and extended on the basis of good satisfaction of completion of the fixed term. In this way, you can get your franchise renewed and extended for a longer and maximum period of time.380

379 Schwallie-Giddis, Pat, Mercedes ter Maat, and Monalisa Pak. "Initiating leadership by introducing and implementing the ASCA National Model." Professional School Counseling 6, no. 3 (2003): 170-173. 380 Moore, Michael G., and Greg Kearsley. Distance education: A systems view of online learning. Cengage Learning, 2011.

194 ______Now the simple process is this, if you have the required money you should apply for the Educator Franchise School on the proper designed and prescribed form on the official website of the school. Details about this process are available for franchisees in all the offices situated in all the regional. This system arranges a franchise training at all the regional offices of the Educator. 381

3.4.12 THE COUNTRY SCHOOL SYSTEM AND FRANCHISING IN EDUCATION

The Country school is really in project of BLOOMFIELD HALL. It is one of the known and reputed educational institutions in Pakistan. It has thirty (30) year experience of education. There are many branches of this school at about in twenty (20) cities of Pakistan. The franchise system of this Country School was introduced and lunched under the protection and banner of BLOOMFIELD HALL MANAGEMENT SYSTEM (BHMS). So, that is why since that time more than seventy (70) branches of this school franchise have come into the existence in the different towns and many cities in Pakistan.382

We have already mentioned that the BLOOMFIELD HALL is one of the highest reputable educational institutions in Pakistan. For this purpose of academic year of 2016-17 from the authority of BHMS are being offered for the opportunity of franchises it. But in addition to this some condition, attributes and terms of the franchise model are as follows:

 Brand name  Centralized examination system  Marketing and promotion  Location analysis  Teacher training  Quality control and monitoring

381 Lynch, Lisa M. "Private-sector training and the earnings of young workers." The American Economic Review 82, no. 1 (1992): 299-312. 382 Hunt, Frances. Dropping Out from School: A Cross Country Review of the Literature. Create Pathways to Access. Research Monograph, No. 16. 2008.

195 ______ Guidance in school setup and management  Uniform, furniture package  Advice on installation, maintenance of i.t system  Assistance by franchisor supervisor  Training the accounts  Departments on maintaining books, tax payment including fiohi, advance taxes etc.  Preschool rupees 200000  For each higher class after preschool rupees 75000383

The people who are interesting in getting and acquiring the franchising in this school system they must prepare a feasibility report that will be based on the running branches of the school of the country; they can apply in the month of August/September every year.

3.4.13 THE AMERICAN LYCETUFF SCHOOL

The Americanlcetuff School is one of those that is basic, pioneer and first school having the quality of education. In addition to this, with the ability in- house R & D division with have the ability consistently changing and turning into the up-to-date, latest and newest technologies on the ground of block. And with a point it is a very best and good team of academia. It is very determined and dedicated to enhance and up gradation of the syllabi and curriculum. This school considered a very unique school of its type and kind on the platform of fraternity. ALS, it is the such type of school and center of education which is dynamic and very active in the society. This school is called the combination of knowledge created and gained by the interaction and discussion of dedicated and concentrated organizer, enthusiastic and loving parents and committed and determined faculty.

The vision and thought of ALS extends and cross beyond the limit of narrow and small walls of the classroom and pages of the text books in the environment of ALS the believe and thought which they have its that education is basically means its equipped the people for the life and prepare

383 Bloomfield, D. "Come clean on small schools." Education Week 25, no. 20 (2006): 34-35.

196 ______the young one for society and not only for school. So, this philosophy is provided in this school are the inspiration and for the stimulations of its idea this environment is managed and provided. In fact, environment, all the students and children learn knowledge with enjoyment and encouraged to do more. They accept the challenge of the time to perform and play an active role in the society to the best of their capability and ability. With the side of this of aspect they are all time ready to perform successfully in all the areas of all expensive field of curriculum. At this school, all the students feel inside classroom and outside the classroom to learn the knowledge and accept all kind of responsibility. They also established and promoted self-discipline in their personality and enhance self confidence in them. And the campus of this school it is the basic believe and theory that both the personalities I means teachers and parents play and show a very important and unique role in the development of the children and growth of the mentality. It is fact, that all such type of achievements is possible only in environment of open communication fruitful and regular discussion and punctual and active participation in any institution, school and center of education.384 a) IMPORTANT MERITS OF ALS  It runs all the types of schools and also owns that are doing offered for the purpose of franchising.  It never offers the brand of the interior side.  The good quality and good name and reputation of ALS are always associated and shared with all the franchises.  The plans and agreement of the franchise it is always flexible and can be easily adjusted and converted according to the basic and unique environment.  This school always offers such type of program which are value-added in the shape of a host. Such type of add-ons is not considered youthful only for raising the standard but also through you in the position of and advantageous and contagious.

384 Farooq, M. S., and S. Sardar. "CAUSES OF LOW QUALITY PERFORMANCE OF PUBLIC SECTOR SCHOOLS: AN EXPLORATION."

197 ______ It is also another merit of this school that is offers “o-levels” in all the branches of franchise options.  They try their best to accommodate all types of business class and associates in the figure of franchise, merger, house sourcing and partnership.  There are arrangements of the acquisition that is a very viable option.  They also encourage all the franchisor for phasing out franchises so that to fulfill the need of future growth of the society.  It is also considered in special cases for the franchise option in the form of comprehensive areas and also cities etc. 385 3.4.14 LIST OF FRANCHISING SCHOOLS

There is a long list of school franchises (School that offers Franchise) in Pakistan but following names of the schools are very important:

 The Educator  Allied School  British International School System  Islãmic International School System  Dar-e-Arqam  Need School System  The American School  Roots School  The Smart School  Ville School  Americanlcetuff School  The Country School  Air Foundation School System  A Q Khan School System  American Lyceum School  Silk School System

385 Coleman, James, Thomas Hoffer, and Sally Kilgore. "Cognitive outcomes in public and private schools." Sociology of education (1982): 65-76.

198 ______ The Knowledge School386

According to research, this list of the school of franchising is very preliminary and primary list in Pakistan. Any researcher and reader want to get more information and knowledge about the registration and also about the authority of the franchising department they are requested to please visit, “School Registration Procedure& Requirement in Pakistan” and “Download How to Start a School in Pakistan”. 387

3.5 FRANCHISING IN FOOD INDUSTRY

There is a great platform for the local people and foreigners in the field of franchising in food industry.388 A people who wants to establish a unit in the field of food there is no hurdle in the way. Government of Pakistan will also facilitate of such types of people who have such interest in Pakistan. The country of Pakistan is such like place is such type of place for such type of people which gives the good environment,389 all facilities with small taxes.390 So, I shall encourage all such type of people to establish and manage their company in this field without any fear. So, keeping in view all the scenario of franchise business in food sector I shall try to through light upon all the types of franchising in food sector. All the readers are requested that my focus is especially in the province of Punjab and generally in Pakistan. For the protection of this business391 the government of Punjab has an established

386 McEwan, Patrick J., and Martin Carnoy. "The effectiveness and efficiency of private schools in Chile's voucher system." Educational evaluation and policy analysis 22, no. 3 (2000): 213-239. 387 Mendelsohn, Martin, and Clive Freedman. Franchising law. Richmond Law & Tax, 2004. 388 Kalnins, Arturs, and Francine Lafontaine. "Multi-unit ownership in franchising: evidence from the fast-food industry in Texas." RAND Journal of Economics (2004): 747-761. 389 Bhaskaran, Suku. "Incremental innovation and business performance: small and medium‐size food enterprises in a concentrated industry environment." Journal of Small Business Management 44, no. 1 (2006): 64-80. 390 Krueger, Alan B. "Ownership, agency, and wages: An examination of franchising in the fast food industry." The Quarterly Journal of Economics106, no. 1 (1991): 75-101. 391 Grünhagen, Marko, and Robert A. Mittelstaedt. "Entrepreneurs or investors: do multi‐unit franchisees have different philosophical orientations?" Journal of Small Business Ma

199 ______an authority that is called PUNJAB FOOD AUTHORITY (PFA).392 This authority has the responsibility to make sure that all the people and food places will be in their limitations.393 This authority when wants, it starts a campaign against all those people who are selling and purchasing poor items, unhygienic394 things and also adult traded items.395 Now after this authority all the investor of franchise business396 in any types of food sector that run and manage without any fear and hurdles from the side of Government. Because now they understand That the legal issues397 will not be there and justice will be provided to them in every field and every time during the business. So, I shall give the sharp details of franchising in the field of food sector about all types of franchising.398 First of all I shall discuss and explain the list of important restaurants, Bakeries and food places that are busy in doing there franchising in food sector.

3.5.1 LIST OF IMPORTANT RESTURANTS,399 BAKERIES AND FOOD PLACES  FAT BURGER Address: Lahore, Punjab, Pakistan  NADEEM TIKKA

392 Rashid, Shahidur, Ashok Gulati, and Ralph Waldo Cummings Jr. From parastatals to private trade: Lessons from Asian agriculture. Vol. 50. Intl Food Policy Res Inst, 2008. 393 Paik, Yongsun, and David Y. Choi. "Control, autonomy and collaboration in the fast food industry: a comparative study between domestic and international franchising." International Small Business Journal 25, no. 5 (2007): 539-562. 394 Tharakan, Y. G. "GROWTH OF FAST FOOD INDUSTRY IN THE INDIAN SCENARIO–A RESULT OF THE SOCIO-ECONOMIC GROWTH AND EMERGING EATING OUT HABITS." In The 7th Biennial Conference on Tourism in Asia, p. 83. 395 Gereffi, Gary, and Michelle M. Christian. "Trade, transnational corporations and food consumption: A global value chain approach." (2010). 396 Paik, Yongsun, and David Y. Choi. "Control, autonomy and collaboration in the fast food industry: a comparative study between domestic and international franchising." International Small Business Journal 25, no. 5 (2007): 539-562. 397 Hunt, Shelby D. "The socioeconomic consequences of the franchise system of distribution." The Journal of Marketing (1972): 32-38. 398 Grünhagen, Marko, and Michael J. Dorsch. "Does the franchisor provide value to franchisees? Past, current, and future value assessments of two franchisee types." Journal of Small Business Management 41, no. 4 (2003): 366-384. 399 Min, Hokey, and Hyesung Min. "Benchmarking the service quality of fast-food restaurant franchises in the USA: A longitudinal study." Benchmarking: An International Journal 18, no. 2 (2011): 282-300.

200 ______Address: Lahore, Punjab, Pakistan  MANDARIN RESTURANT Address: Lahore, Punjab, Pakistan  YASIR BROST Address: Lahore, Punjab, Pakistan  KFC Address: Pakistan  TABAQ RESTURANTS Address: Punjab, Pakistan  GLORE JEAN COFFEE Address: Lahore, Punjab, Pakistan  HARDEES Address: Lahore, Punjab, Pakistan  SHEIKHOO RESTURANTS Address: Lahore, Punjab, Pakistan  LAHORE BROAST Address: Lahore, Punjab, Pakistan  BURGER CORNER Address: Lahore, Punjab, Pakistan  ZAKIR TIKKA RESTURANTS Address: Lahore, Punjab, Pakistan  FRI CHICKS Address: Lahore, Punjab, Pakistan  GORNMENT BAKERS Address: Pakistan  AFC Address: Lahore, Punjab, Pakistan  MIAN G RESTURANT Address: Lahore, Punjab, Pakistan  HAIDRI RESTURANT Address: Lahore, Punjab, Pakistan  MALMO SWEET Address: Lahore, Punjab, Pakistan  BIGMAN’S SWEET AND BAKERS

201 ______Address: Lahore, Punjab, Pakistan  NIRALA BIRYANI Address: Lahore, Punjab, Pakistan  MALIK HOTEL Address: Lahore, Punjab, Pakistan  HAFIZ SWEETS Address: Lahore, Punjab, Pakistan  IQBAL STORE Address: Lahore, Punjab, Pakistan  SANA BAKERY Address: Lahore, Punjab, Pakistan  NEW SHINWARI HOTEL Address: Punjab, Pakistan  KARACHI SILVER SPOON Address: Lahore, Punjab, Pakistan  ITALIAN PIZZA Address: Lahore, Punjab, Pakistan  BUT SWEETS Address: Punjab, Pakistan  DOCE BAKERY AND SWEETS Address: Punjab, Pakistan  CAKES AND BAKES Address: Pakistan  SHEZAN BAKERY Address: Pakistan  POSPARE BAKERY AND SWEET Address: Pakistan  CHAMAN ICE CREAM Address: Punjab, Pakistan  AVARI HOTEL Address: Punjab, Pakistan  PC HOTEL (PEARL CONTINENTAL) Address: Pakistan  LAHORE CAFETAREA

202 ______Address: Lahore, Punjab, Pakistan  GOURNMENT RESTURANT Address: Punjab, Pakistan  RED CHILLI RESTURANT Address: PAKISTAN  JAWA SWEETS AND BAKERS Address: Punjab, Pakistan  JAWA BROOST Address: Punjab, Pakistan

Now on the other side I shall give the name of important food places400 and food campiness401 in Pakistan. These companies are running their business in food sector successfully.

 NESTLE  DALDA  MAIR FOODS  MITCHILL’S FRUIT FARMS  MURREE BREWERY  NATIONAL FOODS  OMORE  SHAN FOOD  SHEZAN INTERNATIONAL  UNITED INDUSTRIES

Now I shall try to mention the important food points402 in Pakistan.

 ANARKALI BAZAR FOOD STREET, LAHORE

400 Stephenson, Kevin, Rachel Amthor, Sally Mallowa, Rhoda Nungo, Busie Maziya-Dixon, Simon Gichuki, Ada Mbanaso, and Mark Manary. "Consuming cassava as a staple food places children 2-5 years old at risk for inadequate protein intake, an observational study in Kenya and Nigeria." Nutrition journal 9, no. 1 (2010): 9. 401 Rohra, Dileep Kumar, Anwarul Hassan Gilani, Ismail Kamal Memon, Ghazala Perven, Muhammad Talha Khan, Hina Zafar, and Rakesh Kumar. "Critical evaluation of the claims made by pharmaceutical companies in drug promotional material in Pakistan." J Pharm Sci 9, no. 1 (2006): 50-9. 402 Mamun, A., K. M. A. Tareq, and M. A. Azadi. "Food and feeding habits of Amblypharyngodon mola (Hamilton) from Kaptai reservoir, Bangladesh." Pakistan Journal of Biological Sciences 7, no. 4 (2004): 584-588.

203 ______ BOAT BASIN, KARACHI  BURNS ROAD, KARACHI  FOOD STREET, KARACHI  FORT ROAD, FOOD STREET, LAHORE  GAWALMANDI FOOD STREET, LAHORE  MM ALAM ROAD, LAHORE  MALODOI FOOD STREET, IslãmABAD  QISSA KHANI BAZAR FOOD STREET, PESHAWAR  DAULAT GATE FOOD BAZAR, MULTAN

These main food points mentioned above in which all types of franchise business are running in food sector. Investors are investing their huge money and also earning reasonable profits in their business in the forms of franchises in food sectors.403

3.6 FRANCHIZING BUSINESS IN OTHER BUSINESS SECTOR There are so many sectors in Pakistan in franchising field that we cannot count. And it is also impossible to give detail of all the sectors in this line. So, we shall try to give detail of four sectors in which franchising is flourishing in Pakistan. In the light of given detail in the four sectors we can easily estimate and can get information about others sectors. So, in my opinion there are four important sectors are the following: 3.6.1 FRANCHISING IN PHARMACEUTICAL SECTOR In this sector, I shall try to provide a detail of about top ten pharmaceutical campiness in Pakistan.404 Everyone knows when a Pakistan came into existence there was no pharmaceutical company or industry in Pakistan. And there were so many difficulties and hurdles405 for the people of Pakistan about health. Now according the update survey there are almost 4 hundred

403 Jeswani, Harish Kumar, Walter Wehrmeyer, and Yacob Mulugetta. "How warm is the corporate response to climate change? Evidence from Pakistan and the UK." Business Strategy and the Environment 17, no. 1 (2008): 46-60. 404 Narayanan, Sridhar, Ramarao Desiraju, and Pradeep K. Chintagunta. "Return on investment implications for pharmaceutical promotional expenditures: The role of marketing-mix interactions." Journal of marketing68, no. 4 (2004): 90-105. 405 Rohra, Dileep Kumar, Anwarul Hassan Gilani, Ismail Kamal Memon, Ghazala Perven, Muhammad Talha Khan, Hina Zafar, and Rakesh Kumar. "Critical evaluation of the claims made by pharmaceutical companies in drug promotional material in Pakistan." J Pharm Sci 9, no. 1 (2006): 50-9.

204 ______pharmaceutical manufacturing unit are working very well in Pakistan. According to a serve these four hundred units and also running their multinational units406 in different other countries of the world. And I am pride to describe that 70% demand of the people of Pakistan in connection with medicine are being fulfilled by our pharmaceutical campiness of our own countries. And we need only 30% demand of medicine imports from other countries. So, it is a very great achievement and huge success of these companies. According the record of official side it has been declared that in the year of 2012 the total export of the medicine was recorded S500 millions and it is also expected that at the end of year 2014 it will touch the figure of S800 million.407 Now-a-days it is considered that sector of pharmaceutical line in Pakistan is the top of the list in developed sector of our nation. The other countries of the world admit this fact that these campiness in Pakistan uses latest and up-to-date technologies. And this is the real reason that in Pakistan PharmD Course in Pakistan is getting importance and very much popularity now-a-days. It is also very important thing to describe that many school of pharmacy are being arranged, opened and established by the side government sector408 and also from the people who have interest as a private sector. It is much arranged system in Pakistan to establish or to open a new school or pharmacy. It means there is no free hand for every person and or every people to open or established a new school with his own will without getting any permission from the government. In every province, there is a very complete authority that has complete check and balance of the pharmaceutical campiness of Pakistan. Similarly, in the province of Punjab The Punjab Pharmacy Council409 is the responsible of all the pharmaceutical campiness. This council has the authority to issue a license or permission or

406 Birkinshaw, Julian, Pontus Braunerhjelm, Ulf Holm, and Siri Terjesen. "Why do some multinational corporations relocate their headquarters overseas?" Strategic Management Journal 27, no. 7 (2006): 681-700. 407 Santen, R. J., H. Brodie, E. R. Simpson, P. K. Siiteri, and A. Brodie. "History of aromatase: saga of an important biological mediator and therapeutic target." Endocrine reviews 30, no. 4 (2009): 343-375. 408 Sarkar, P. K. "A rational drug policy." Indian J Med Ethics 1, no. 11 (2004): 2. 409 Shveta, S., and S. Jagmohan. "A study of self-medication pattern in Punjab." Indian Journal of Pharmacy Practice 4, no. 2 (2011).

205 ______not issuing the license.410 In addition to the power of giving permission, it has complete authority of check and balance of every pharmacy in the province. It is also responsibility if this council to check by visiting practically or physically to get information about their process and the ingredients that hey use in preparing the medicine. It is also the duty of council to seal the company in case of not being satisfied. So, the no. of pharmaceutical campiness in Pakistan are so many but according to my opinion the list of top pharmaceutical campiness in Pakistan are necessary to be mentioned and that are following:

 FEROZSONS LABORATORIES Address: 5 Km Sundar Riwand Road, Riwand, Lahore, Pakistan PH # +92(42) 2104001-3  WILSHIRE LABS / HORIZON PHARMACEUTICAL Address: 124/1- Industrial State, Kot Lakhpat, Lahore, Pakistan PH# +920425121668-9, +920425116579  GETZ PHARMA Address: 29-30/27, Korangi Industrial area, Karachi 74900, Pakistan PH# UAN +9221-111-111-511  SEARLTE PAKISTAN LIMITED Address:1st floor NICT.Building Abbasi Shaheed road, Karachi, Pakistan PH# 092213567-4321  HERBION Address: Plot 30, sector 28, Korangi Industrial area, Karachi, Pakistan PH# +9221111503111  REMINGTON PHARMACEUTICALS Address: 18 Km Multan Lahore 53800- Pakistan  BARRETT HODGSON PAKISTAN Address: F/423 S.I.T.E, Karachi-75700, Pakistan

410 Lowe, Richard Francis, and Dominic Montagu. "Legislation, regulation, and consolidation in the retail pharmacy sector in low-income countries." Southern Med Review 2, no. 2 (2009).

206 ______PH# 02132568811  NUCLEUS PHARMACEUTICALS (Pvt) LIMITED Address: Bahira Town, Rawalpindi, Pakistan  MACTER INTERNATIONAL LIMITED Address: F/216 S.I.T.E, Karachi, Pakistan PH# +9202132575311-14  AGP PHARMACEUTICALS 411 Address: D/2123, S.I.T.E, Karachi- 75700, Pakistan PH# +92-21-111-247-247

After giving the details of the pharmaceuticals campiness i.e. their proper names, there address and their phones, I feel proud to say that these lists of top pharmaceuticals campiness will increase the knowledge and information about this field of the readers. But in spite of this if any person wants to get more information about any company he may do by using the contact number of the campiness and fulfill the need and demand of the question raised in his mind freely. In this way I hope, a common man will also can get benefit by reading this detail really. (IN SHA ALLAH).

3.6.2 FRANCHISING IN COMPUTER SOFTWARE SECTOR Before giving the list, it is necessary to speak upon the basic information about the software, software development and software developers. After giving the details about software, then I shall attach the top-ranking campiness who are franchising in the software field at the end of the detail. So, the number wise detail of the concerned element is as follow: a) SOFTWARE

Computer software, is also known as simply ` Software`. It the part of a computer system which consists of the `data` or consists of computer

411 Adams, Carol A., and Nongnooch Kuasirikun. "A comparative analysis of corporate reporting on ethical issues by UK and German chemical and pharmaceutical companies." European Accounting Review 9, no. 1 (2000): 53-79.

207 ______instructions. It is antonym to the `physical hardware` with which the whole system of computer is built.412 b) SOFTWARE DEVELOPMENT

May be defined as a process of computer programming, or documenting, or testing, and also bug fixing which is involved in the creating and also maintaining the applications which is resulting in the shape of a software product. It is called the process of the writing and also the process of maintaining the source code.413 c) SOFTWARE DEVELOPERS May be defined as a person who is concerned with the facets of the software development process, which includes the research, the design, the programming, and also the testing of computer software. He is also called as programmer, software engineer, and software analyst.414 d) SOFTWARE DEVELOPMENT AND BRIGHT FUTURE

The importance of Software and its development cannot be denied because it has become the pillar and the base for everything that you want to use in your daily routine and life. As long as a computer or any chip is there in your device, the software will continue to guide it. No doubt, it may be your smart television, the mobile phone, or the any other electronic device which is supposed to use the smart technology;415 actually the basic instructions are inscribed or written inside the chip that makes the

412 McCall, Jim A., Paul K. Richards, and Gene F. Walters. Factors in software quality. volume i. concepts and definitions of software quality. GENERAL ELECTRIC CO SUNNYVALE CA, 1977. 413 Guinan, Patricia J., Jay G. Cooprider, and Samer Faraj. "Enabling software development team performance during requirements definition: A behavioral versus technical approach." Information systems research 9, no. 2 (1998): 101- 125. 414 Sim, Susan Elliott, Charles LA Clarke, and Richard C. Holt. "Archetypal source code searches: A survey of software developers and maintainers." In Program Comprehension, 1998. IWPC'98. Proceedings., 6th International Workshop on, pp. 180-187. IEEE, 1998. 415 Cheek, Penny, Linda Nikpour, and Heather D. Nowlin. "Aging well with smart technology." Nursing administration quarterly 29, no. 4 (2005): 329-338.

208 ______device really smart. Most of people call it embedded,416 some call it enterprise,417 and some cloud and what not! Really all these names relate to any kind of software which controls all the functioning of all the of device that makes it smart. In fact, what I intend to emphasize and to highlight in these lines is the fact that a software is supposed to be stayed in the different forms or shapes as long as the any type of Information Technology takes its stay. Everything and every element about IT is really driven by any sort of software. So, it is very easy to say there will be a bright future for a long time for the people and the new generation in coming time.418

Similarly, even if you want consider or think about the Mobile Apps,419 it is called a variation of some software only. If you wish to set your foot in the firm in the IT industry,420 that is called one of the most creative and also lucrative industries in the world, you will have to obtained learn a lot information about the hardware421 and also the software. Software is a much more interesting and also a well-paid422 job and for this reason it involves a lot of information about creative thinking. Creative is used in this sense, that you are always creating new solution of the new problem in the shape of

416 Culler, David, Jason Hill, Philip Buonadonna, Robert Szewczyk, and Alec Woo. "A network-centric approach to embedded software for tiny devices." In Embedded Software, pp. 114-130. Springer Berlin/Heidelberg, 2001. 417 Rettig, Cynthia. "The trouble with enterprise software." MIT Sloan management review 49, no. 1 (2007): 21. 418 Augustine, Norman R. "Rising above the gathering storm: Energizing and employing America for a brighter economic future." Retrieved March 19 (2005): 2008. 419 Mojica, Israel J., Bram Adams, Meiyappan Nagappan, Steffen Dienst, Thorsten Berger, and Ahmed E. Hassan. "A large-scale empirical study on software reuse in mobile apps." IEEE software 31, no. 2 (2014): 78-86. 420 Naqvi, Sayyed Muhammad Mehdi Raza, and Sajid Bashir. "IT-expert retention through organizational commitment: A study of public sector information technology professionals in Pakistan." Applied Computing and Informatics 11, no. 1 (2015): 60-75. 421 Van Der Meulen, M. J. P. Definitions for Hardware and Software Safety Engineers. Springer Science & Business Media, 2012. 422 Hernani-Limarino, Werner. "Are Teachers Well Paid in Latin America and the CariLaupacis, Andreas, David Feeny, Allan S. Detsky, and Peter X. Tugwell. "How attractive does a new technology have to be to warrant adoption and utilization? Tentative guidelines for using clinical and economic evaluations." CMAJ: Canadian Medical Association Journal 146, no. 4 (1992): 473.bbean?" Incentives to Improve Teaching (2005): 63.

209 ______software or in the form of an App. For those people who are called the problem solvers, software development is considered to hold a very bright future them. And now with the emergence of new technology423, the software programming424 is supposed to become very easy on different platforms that offer visual programming425 and it also consoles426 that have different ready-made solutions427 and plug-ins428 that can be used very easily. Similarly, the conventional coding,429 that was considered monotonous,430 is no more a hurdle or hindrance to the aspiring programmers.431

423 Laupacis, Andreas, David Feeny, Allan S. Detsky, and Peter X. Tugwell. "How attractive does a new technology have to be to warrant adoption and utilization? Tentative guidelines for using clinical and economic evaluations." CMAJ: Canadian Medical Association Journal 146, no. 4 (1992): 473. 424 Homer, Charles, Oded Susskind, Hillel R. Alpert, Celestina Owusu, Lynda Schneider, Leonard A. Rappaport, and David H. Rubin. "An evaluation of an innovative multimedia educational software program for asthma management: report of a randomized, controlled trial." Pediatrics 106, no. Supplement 1 (2000): 210-215. 425 Green, Thomas R. G., and Marian Petre. "Usability analysis of visual programming environments: a ‘cognitive dimensions’ framework." Journal of Visual Languages & Computing 7, no. 2 (1996): 131-174. 426 Edwards Jr, Gordon L. "System with software usage timer and counter for allowing limited use but preventing continued unauthorized use of protected software." U.S. Patent 5,014,234, issued May 7, 1991. 427 Pillai, Anil Kumar Raghavan, Ashok Kumar Pundir, and L. Ganapathy. "Improving information technology infrastructure library service delivery using an integrated lean six sigma framework: A case study in a software application support scenario." Journal of Software Engineering and Applications 7, no. 06 (2014): 483. 428 Chen, Ben W. "Adaptive media streaming server for playing live and streaming media content on demand through web client's browser with no additional software or plug-ins." U.S. Patent 6,728,763, issued April 27, 2004. 429 Hutchinson, Alison M. "Analysing audio-recorded data: using computer software applications: Conventional methods of qualitative data analysis require transcription of audio-recorded data prior to conduct of the coding and analysis process. In this paper Alison Hutchinson describes and illustrates an innovative method of data analysis that comprises the use of audio-editing software to save selected audio bytes from digital audio recordings of meetings. The use of a database to code and manage the linked audio files and ...." Nurse researcher 12, no. 3 (2005): 20-31. 430 Mouček, Roman, and Jan Řeřicha. "Driver's attention during monotonous driving." In Biomedical Engineering and Informatics (BMEI), 2012 5th International Conference on, pp. 486-490. IEEE, 2012. 431 Hoover, Dave, and Adewale Oshineye. Apprenticeship patterns: guidance for the aspiring software craftsman. " O'Reilly Media, Inc.", 2009.

210 ______e) BEST SOFTWARE DEVELOPMENT CAMPINESS IN PAKISTAN No doubt there are so many software campiness432 in Pakistan working in a right way. It would not wrong to say that the such type of campiness is in tons in Pakistan. But the question is this that which campiness are the best to provide good services to the customers in Pakistan. Keeping in view this point, I shall try my best to compile and arrange a list of such type of campiness in Pakistan. But it is very necessary when we make or arrange such type of list, we have to concentrate and focus on the reactions and statements433 of the clients in the current time. Saying this I mean the statements of the client about the cost of the company, there commitment and responsibilities434 about the time and opinions about the work of the company on the ground of quality and quantity.435 The question is now in my mind and it is very necessary to clarify it that if I want to make a list of such type of campiness it will be a very comprehensive that will cover all the software development436 campiness in Pakistan. So, it will also be the boring list for the readers. Avoiding from this boring position of the reader that if any reader wants to go into the such detail of the list of the such companies he must check and used the websites and portfolios.437 He should also care that to what company is favorable to him to work with before deciding this thing.

432 Misra, Pradyumna K., Bradley J. Graziadio, and Terence R. Spies. "System and method for software licensing." U.S. Patent 7,171,662, issued January 30, 2007. 433 Vigeland, Robert L. "The market reaction to statement of financial accounting standards No. 2." Accounting Review (1981): 309-325. 434 Novak, Joseph D. "A theory of education: Meaningful learning underlies the constructive integration of thinking, feeling, and acting leading to empowerment for commitment and responsibility." Meaningful Learning Review 1, no. 2 (2011): 1-14. 435 McNeil, Barbara J., Ralph Weichselbaum, and Stephen G. Pauker. "Speech and survival: tradeoffs between quality and quantity of life in laryngeal cancer." New England Journal of Medicine 305, no. 17 (1981): 982-987. 436 Spencer, Rick. "The streamlined cognitive walkthrough method, working around social constraints encountered in a software development company." In Proceedings of the SIGCHI conference on Human Factors in Computing Systems, pp. 353-359. ACM, 2000. 437 Shaltry, Chris, Danah Henriksen, Min Lun Wu, and W. Patrick Dickson. "Situated learning with online portfolios, classroom websites and Facebook." TechTrends 57, no. 3 (2013): 20-25.

211 ______He should also check the social media438 presence and side by side testimonials439 before decide this. f) PAKISTAN TOP SOFTWARE HOUSE LIST No doubt every person knows the importance of software development campiness in every field and every walk of life. And the importance of such company is very beneficial and a great attraction especially for those peoples who are jobless. Because such campiness often and frequently offers jobs for the jobless people. Sometime as software engineer, sometime as a graphic designer,440 sometime as a project manager441 and sometimes as a marketing officer442 and sometimes SEO jobs. Now for this purpose I want to share the, “List of top software development campiness in Pakistan”. In this way, my opinion is this that such list will be helpful to every person of this mind and he will be able to select and choice the software house of his own will. Some important and famous names of the campiness and their websites will be managed in coming lines. On the off chance that you are looking Software Companies in Pakistan so in this chapter I will demonstrate to you the names of The Top 14 programming houses to work for in the Pakistan. Rundown of Best Workplaces in Pakistan that influences Great Place to Work to is produced using a poll among 13 organizations of various sizes and areas. Today I am will share top programming organizations in Pakistan who work for in the in the data innovation. In the event that you naturally move on from school and looking for the activity. Furthermore, you don't have thought which programming organization is best for the startup profession. I, for one

438 Kaplan, Andreas M., and Michael Haenlein. "Users of the world, unite! The challenges and opportunities of Social Media." Business horizons 53, no. 1 (2010): 59-68. 439 Shimp, Terence A., Stacy L. Wood, and Laura Smarandescu. "Self-generated advertisements: Testimonials and the perils of consumer exaggeration." Journal of Advertising Research 47, no. 4 (2007): 453-461. 440 Netwark, Quertin. What a graphic design. Swiszerland: Roto Vision, 2002. 441 El-Sabaa, Salah. "The skills and career path of an effective project manager." International journal of project management 19, no. 1 (2001): 1-7. 442 Nath, Pravin, and Vijay Mahajan. "Marketing in the c-suite: a study of chief marketing officer power in firms' top management teams." Journal of Marketing 75, no. 1 (2011): 60-77.

212 ______suggested these IT organizations in Pakistan you can begin your profession with them. Rundown of Top IT Software Companies in Pakistan  Zepto Systems  NetSol Technologies  Ovex Technologies  TRG Tech  Framework Pvt Ltd  Kalsoft  Mixture Tech Ibds  Mixture Technologies Pakistan (PVT) Ltd  Macrosoft Pakistan  Xavor Corporation  Techlogix  Pakistan Software Houses Association  SolutionDots Systems  TMR Consult 1. ZEPTO SYSTEMS Zepto Systems is a group of industry specialists with over too many years of involvement in the IT business. We trust that each customer merits break even with measure of consideration, paying little heed to their business size and industry. We likewise trust that each business, paying little respect to their size and spending plan, ought to have measure up to chance of contending with their rivals. 2. NETSOL TECHNOLOGIES NetSol Technologies, Inc. (NASDAQ: NTWK) began its excursion as a US based supplier with a dream to make predominant innovation arrangements. Determinedly following our vision, we now remain as one of the worldwide pioneers in IT Services and Enterprise Solutions. Conveying quality and customization for over a time of four decades, we offer unrivaled IT arrangements that assistance streamline the operational needs of your business. With more than 150 fulfilled customers in more than 30 nations and 250 usage all inclusive, we comprehend the estimation of

213 ______adaptability and endeavor to ceaselessly convey uncommon arrangements which cook straightforwardly to your business needs. In the early years of the Company, he was in charge of rebuilding the organization's plan of action into that of an IT organization and was instrumental in the consummation of the NetSol Technologies IPO in 1998, around then NetSol was the principal IT Company from Pakistan to be recorded on NASDAQ. Before propelling NetSol in the U.S. 3. OVEX TECHNOLOGIES Ovex innovation on second number in programming house in Pakistan. Ovex Technologies is an outsider seaward Business Process Outsourcing Software House, Ovex Technologies is Pakistan's biggest seaward BPO arrangements supplier and a main exporter of IT arrangements. With an exponential development rate and a present asset pool of more than 670 exceptionally qualified and prepared faculty, we offer worldwide operational abilities with all day, every day bolster for every one of our customers and operational groups and three completely incorporated best in class excess offices with affirmed advisors supporting clients in driving maintainable financially savvy business development. Ovex Technologies is an ISO 9001:2008 confirmed organization that comprehends the differing mechanical needs and requests of an advancing worldwide endeavor. With inside and out aptitude over various industry verticals, we give bound together client mind and remarkable administrations through our cooperative client administration display. Our administrations portfolio incorporates complete Outsourcing Solutions, driven by our confidence in steady advancement and supported development. 4. TRG TECH TRG Tech is an innovation development firm and a division of trg bpo, Pakistan's spearheading worldwide outsourcing organization. trg tech is an innovation advancement firm and a division of TRG BPO, Pakistan's spearheading worldwide outsourcing organization. trg tech changes organizations using inventive and innovative innovation by assessing business circumstances, recognizing changes and after that quickly conveying sway. We devise winning innovation system across

214 ______various industry verticals and useful spaces, and specialty answers for improve authoritative execution. trg tech's overall customer base contains Fortune 500 and FTSE 100 organizations. trg tech administrations go from business process consultancy to custom application advancement outfitted to make and manage focused edge both for firms undertaking new innovation activities and those with set up innovation situations. We give benefits that expand or reclassify current procedures and manufacture or incorporate custom fitted arrangements. 5. SYSTEM PVT LTD Frameworks Limited was built up in 1977 as Pakistan's chief programming house and innovation based arrangement supplier. Since its beginning, it has developed and advanced to be at the inside phase of data and innovation, giving viable registering techniques and answers for Private and Government Organizations. Frameworks Limited has assumed a noteworthy part in a portion of the biggest IT anticipates in the nation. Globally, the Company has set up itself as a key player in the basic market fragments of United States, giving administrations and items to a developing rundown of corporate customers. Our differing aptitude stretches out past arrangement to give operational, upkeep, support and business outsourcing administrations. Our Technology Specialists have a very long time of experience conveying effective arrangements in light of Microsoft, Oracle, IBM and Java-based innovations. Frameworks Limited is a completely worker possessed organization speaking to a more noteworthy representative sense of duty regarding fruitful arrangement conveyance. There are more than 3000 experts in our 5 workplaces in Pakistan,1 in India and 2 workplaces in United States. 6. KALSOFT KalSoft is an outstanding name in the IT Industry that has been synonymous with greatness and nimbleness. Set up in 1999 it has advanced inside a limited capacity to focus time to acquire sensational change the market field through its particular scope of items and administrations. KalSoft has the ability to give the best IT arrangements that enable organizations to pick up

215 ______computerization and control of their work forms by the utilization of their various arrangements and items. It has concentrated on the neighborhood showcase as well as has spread its wings to pick up business in the universal market also. It has cleared a pathway for itself and is right now working globally with an immediate nearness in Pakistan, UAE, Oman and Saudi Arabia. KalSoft alongside its vital accomplices gives a unique level of area mastery with an outcome situated disposition. It presents business esteem with its utilization and persistent Research and Development to achieve an associations trust and unwavering quality with inventive and dynamic items and answers for help them in the expansion of their upper hand and quantifiable profit. 7. SOLUTION TECH IBDS Solution gives innovation and administrations that assistance associations enhance interchanges to their individuals and clients by streamlining procedures and lessening operational costs. Founded in 1985, Elixir is a worldwide organization with workplaces in Asia, Europe, the Middle East and home office in the United States, serving more than 5,000 organizations in 100 nations over an assortment of enterprises. Solution fabricates innovation that enables organizations to enhance client interchanges by streamlining procedures and decreasing operational expenses. The Elixir item portfolio incorporates a Customer Communications Management System (CCMS) that advances work processes to the web – from information process and configuration to generation. With Elixir's across the board framework, organizations enhance their correspondences procedure with unified perceivability to source information, content administration, and plan and generation work processes. Utilizing correspondence application layouts, line of business groups rapidly manufactures and distribute customized interchanges from organization endorsed resources. Client experience and profitability is upgraded by adjusting access, capacities and authorizations by part sort. 8. MIXTURE TECHNOLOGIES PAKISTAN (PVT) LTD Consolidated in 1995, Elixir Technologies Pakistan (Pvt) Limited is a completely claimed auxiliary of Elixir Technologies Corporation U.S.A.

216 ______what's more, is completing a scope of item improvement and bolster exercises including item definition and outline, advancement, testing, client documentation, proficient administrations, specialized help and item upkeep of the parent organization. These exercises are attempted in conjunction with the overall system of Elixir workplaces and accomplices. Mixture offers a steady vocation track with a focused compensation, extra advantages and astounding working conditions in a professional workplace. 9. MACROSOFT PAKISTAN Microsoft is a main edge programming outline and advancement organization. It has an effective blend of business encounter and mechanical mastery that gives customers best-in-class arrangements in programming improvement ventures. Microsoft conveys top notch, savvy, full lifecycle answers for complex programming improvement ventures. The organization has over a time of effective engagements and more than 150 experts working for a remarkable customer list. Microsoft exceedingly qualified and proficient improvement groups can address the whole advancement lifecycle, from business process building and framework engineering plan through conclusive framework facilitating and support. Microsoft keeps up a main edge in programming innovation enabling the organization to plan new frameworks effectively and quickly and effectively coordinate those new framework capacities in complex business and IT situations  648 VIFTECK SOLUTIONS (Pvt) Limited Address: Plot no.32/33, sector 23, Korungi Industrial area, Karachi, Pakistan Website: www.VIFTECK.com  68 AXACT (Pvt) Limited Address: Axact street, main Khayaban-e-Ittehad, Phase VII, DHA- Karachi, Pakistan Website: www.axact.com (Axact sells fake online degrees it was a joke printed by NYT)  434 PARADIGM SOLUTIONS

217 ______Website: www.paradigmsolution.com.pk  143 CISPL Website: www.CISPL.com.pk  712 GRACE SOL TECHNOLOGIES Website: www.gracesol.com.pk  ACCESS GLOBAL PAKISTAN (Pvt) Limited Website: www.accessglobal.org  ADVANCE BUSINESS SYSTEMS Website: www.abs.net.pk  ADVANCE TECK Website: www.advanceteck.pk  ADVANCED COMPUTING AND ENGINEERING SOLUTIONS (Pvt) LTD Website: www.aces.com.pk  AEO PAKISTAN Website: www.aeo.com.pk 443

443 Oza, Nilay V., Tracy Hall, Austen Rainer, and Susan Grey. "Trust in software outsourcing relationships: An empirical investigation of Indian software companies." Information and software Technology 48, no. 5 (2006): 345-354.

218 ______3.6.3 FRANCHISING IN GARMENT SECTOR Like other field there is vast progress in the garments sector.444 Like other field there is a vast progress and future in the line of garments also. When the Pakistan came into the existence there was no number of such type of industries in the field of garments. But with the passage of time many people, much organization445 and many associations446 entered in this field and them really worked wondered. And in a very short there were number fewer factories in Pakistan in this sector. So, I shall try my best to mention the name of the factories and industries in this field and also to mention the brand of the garments in detail. First of all, I shall try to mention about the readymade garments in the following lines. But I think it is necessary to name the company to jump first in this sector. The sharp detail of that company is the following pages: a) PRGMEA (PAKISTAN READYMADE GARMENTS MANUFACTURER & EXPORTERS ASSOCIATION) PRGMEA is the top of the list and first organization in the history of Pakistan that represents the readymade garments industry in Pakistan. It was coming into existence and established in the year 1981.447 It manages advice and provides services to the people to have interest in manufacture and to have also wished to export the garments. It is the also responsibility of this organization to provide and promote a good and better environment448 in the field of trade. This organization as a trade organization, is registered and recognized by the government of Pakistan and has the affiliation with the

444 Mezzadri, Alessandra. "The rise of neo-liberal globalisation and the ‘new old’social regulation of labour: the case of Delhi garment sector." the Indian Journal of labour economics 51, no. 4 (2008): 603-618. 445 Gereffi, Gary. "The Organization of Buyer-Driven Global Commodity Chains: How US Retailers Shape Overseas Production Networks." Commodity chains and global capitalism (1994). 446 Oleary, M. J., and G. R. Park. "Acute renal failure in association with a pneumatic antishock garment and with tense ascites." Anaesthesia 46, no. 4 (1991): 326-327. 447 Rauf, Muhammed Abdull. "HRM sophisticication ans SME performance: a case of readymade garment manufacturers and exporters in Lahore, Pakistan." Master's thesis, University of Twente, 2007. 448 Welch, Lawrence S. "Diffusion of franchise system use in international operations." International Marketing Review 6, no. 5 (1989).

219 ______federation of Pakistan chamber of commerce & industry.449 On the other hand, it is also affiliated and registered with the employers’ federation of Pakistan.450 b) MISSION OF THE COMPANY The main missions of the company are the following:  To give and provide good advice to the manufacturer and exporter of the garments.  To provide good services to the manufacturer and exporter of the garments.  To promote and enhance a better and attractive environment for the people having interest to worlds trade.451 c) OBJECTIVE OF THE COMPANY The main objectives of the company are the following:  To advice the people honestly.  To protect the rights of the members.  To safeguard of the interest of the manufacturer.  To promote the interest of the exporters.  To give assurance of their good will.  To manage and provide helpful and supporting services to all the members of the company.  To monitor and check the performance of the exporters and manufacturer.  To provide and manage the related and concerned information to the people.  To provide the knowledge about the market to all the exporters.  To encourage all the people of this field by providing and advocating for good and attractive environment for export.

449 Roomi, Muhammad Azam, and Guy Parrott. "Barriers to development and progression of women entrepreneurs in Pakistan." The Journal of Entrepreneurship 17, no. 1 (2008): 59-72. 450 Roomi, Muhammad Azam, and Guy Parrott. "Barriers to development and progression of women entrepreneurs in Pakistan." The Journal of Entrepreneurship 17, no. 1 (2008): 59-72. 451 McCartney, Matthew. "The Political Economy of Industrial Policy: A Comparative Study of the Textiles Industry in Pakistan." The Lahore Journal of Economics 19 (2014): 105.

220 ______

 To remove and root out the difficulties and hurdles from this field to correct the shortcomings from this trade.  To manage the interaction continuously with the concerned and expert people.  To manage the meetings with the concerned bodies and institution.452

Now after introducing the PRGMEA in Pakistan I want to mention some whole sale markets in garments of governments especially in Lahore which are following: d) WHOLE SALE MARKETS IN LAHORE Following markets are very huge and has attractive and better environment for franchising in this field.  MAAVIA WHOLE SALE GARMENTS SHOP (SHOP) Address: New Auriga Shopping mall, shop FF25, Main Market, Gulberg II, Lahore, Punjab, Pakistan  SHAH ALAM MARKET (WHOLE SALE MARKET) Address: Shah Almi Road, Lahore, Punjab, Pakistan  SHANI GARMENTS (CLOTHING STORE) Address: G-12 Anarkali Tower, Dhani Ram Road, Lahore, Punjab, Pakistan  BACHOON KI DUNYIA GARMENTS (WHOLE SALER) Address: G-1 Afzal Plaza-Main ShahAlam Market, Shah Almi Road, Lahore, Punjab, Pakistan  AZAM CLOTH MARKET (MARKET) Address: Brass bazar, Lahore, Punjab, Pakistan  IQBAL GARMENTS (SHOPPING MALL) Address: Lahore 54000, Punjab-Pakistan

452 Tilakaratne, W. M. "Phasing out of MFA and the emerging trends in the readymade garment industry in Sri Lanka." Employment in Readymade Garment Industry in Post-MFA Era: The Case of India, Bangladesh and Sri Lanka, Chiba: Institute of Developing Economies (2006): 1-30.

221 ______ QUIZ CLOTHING PAKISTAN (FASHION Accessories STORE) Address: Vogue Tower, MM Alam Road, Lahore, Punjab, Pakistan  COLOURS CHILDREN FIRST (CHILDREN CLOTHING STORE) Address: Lahore-Punjab-Pakistan  CAMBRIDGE SHOP (CLOTHING STORE) Address: First Floor, Fortress Square Mall, Mian Mir Bridge, Lahore, Punjab, Pakistan 453

Now I shall try to increase knowledge given names of readymade shops454 and centers in the following line:

 OUTFITTERS  PALACE  DINNERS  LEWIS  BREAKOUT  GENERATION  J. J455 e) IMPORTANT NAMES OF STICHED AND UNSTICHED COTTON; LOAN BRANDS  WARDA  NISHAT  GUL AHMAD  AL KRAM  SATRANGI  KHADDI  BREEZA  BASHIR AND SONS

453 Shabbir, Amama, and Silvana di Gregorio. "An examination of the relationship between women's personal goals and structural factors influencing their decision to start a business: The case of Pakistan." Journal of Business Venturing 11, no. 6 (1996): 507-529. 454 Dwyer, Claire. "3 Tracing transnationalities through commodity culture." Transnational spaces (2004): 60. 455 Opoku, Robert A., and Patrick AK Akorli. "The preference gap: Ghanaian consumers' attitudes toward local and imported products." African Journal of Business Management 3, no. 8 (2009): 350.

222 ______ ENSARI  PANORAMA  THE HEER’s BUTIQUE PAKISTAN  KID TO KID  HAROON GARMENTS456 f) TEXTILE INDUSTRY IN PAKISTAN457 It is very interesting and good news for Pakistanis that the textile industry in Pakistan is the biggest and the largest manufacturing industry in Pakistan. Pakistan is almost the 8th largest exporter in the field of textile items and commodities in Asia.458 According to an estimate this industry has the contribution of 8.5% to GDP.459 In addition to this, this sector and part employs almost 45% of the total man power and labor force in the country. And like wise 38% of the total manufacturing laborer and workers. According to an estimate Pakistan is the 4th largest out of the producer of cotton with the ability and capacity of being 3rd largest spinning ability and capacity in Asia. This estimate is considered after China and India because they have the contribution of 5% to global and worldwide spinning capacity. According to a serve, there are 1221 ginning units, 442 spinning units, 124 long and large spinning units and in addition to these there are 425 small units that are considered to produce textile.460 g) HISTORY OF TEXTILE INDUSTRY

There is the opinion that the origin of Indian textile is based on the Indus valley civilization that is present and situated in modern Pakistan. People are

456 Ambrose, Gavin, and Paul Harris. The visual dictionary of fashion design. Ava Publishing, 2007. 457 Ahmed, Yaseem. "Textile industry of Pakistan." Horizon Securities, Lahore (2010). 458 Khan, Aftab A., and Mehreen Khan. "Pakistan textile industry facing new challenges." Research journal of international studies 14 (2010): 21-29. 459 Akif, M., A. R. Khan, Z. Hussain, M. Khan, K. Sok, Z. Min, and A. Muhammad. "Textile effluents and their contribution towards aquatic pollution in the Kabul River (Pakistan)." Journal of the Chemical Society of Pakistan 24, no. 2 (2002): 106- 111. 460 Memon, Ismail, Amanullah Panhwar, Dileep K. Rohra, Syed Iqbal Azam, and Nadir Khan. "Prevalence of byssinosis in spinning and textile workers of Karachi, Pakistan." Archives of environmental & occupational health 63, no. 3 (2008): 137- 142.

223 ______very used to spin the cotton and making the garments by weaving it. Historically it is known that the importance and significance of the trade of the Indus valley region in the parts of the world. It is very popular and famous to all the world the importance of the silk in the country of Rome, Egypt, Britain and Indonesia of this region of Indus valley.461

According to the serve, in 1950’s the textile manufacturing industry appeared and emerged as a central part of the Pakistanis industrialization. This result was after a short time after getting independence from the British rule in the South Asia. In 1974, the COTTON EXPORT CORPORATION OF PAKISTAN 462was established by the government of Pakistan. This Corporation was very great and big hurdle for the private people who to manufacture textile. They could not participate and represent in the international trade meeting and seminar. Nevertheless, in late time of 1980’s the role of this corporation minimized and decreased. In 1988-89 the private people of this field were given right to by cotton from ginners and were free to sell in domestic market and also in foreign market. According to an estimate the time between 1947 and 2000, the number textile mills in Pakistan much the increasing line 3 to 600. Likewise, the numbers of spindles touched the increasing line and from the number 177000 to 805 million.463 h) PRODUCTION OF TEXTILE INDUSTRY According to the routine in this field there are six primary portions and sectors of the industry of textile in the form of production in Pakistan:  Spinning  Weaving  Processing  Printing  Garment Manufacturing

461 Lemire, Beverly. Fashion's favourite: the cotton trade and the consumer in Britain, 1660-1800. No. 9. Oxford University Press, USA, 1991. 462 Warning Jr Walter, B. "Method for making cotton candy." U.S. Patent 3,930,043, issued December 30, 1975. 463 Bainton, Roland Herbert. Christendom: a short history of Christianity and its impact on Western Civilization. Vol. 1. Harper & Row, 1966.

224 ______ Filament Yarn Manufacturing 464

In the field of textile industry, the cotton is the important and largest element and segment of textile production. But there are some other fibers that are used in addition to cotton and that are following:

 Cotton  Synthetic Fiber  Filament Yarn  Artificial Silk  Wool  Jute 465 i) TRADE IN TEXTILE INDUSTRY466

When the war starts, the ship sinks or in any other misfortune, the trade in textile is the only way that is very significant in such situation. It has its history in such conditions. All other industry has no matching with it. j) BARRIERS TO GROWTH467  Failure of electricity  Shortage of raw material  War situation  Ignorance of government  Undue restrictions etc

464 Haq, Ikramul, S. Ali, M. M. Javed, U. Hameed, A. Saleem, F. Adnan, and M. A. Qadeer. "Production of alpha amylase from a randomly induced mutant strain of Bacillus amyloliquefaciens and its application as a desizer in textile industry." Pak J Bot 42, no. 1 (2010): 473-484. 465 Faryal, R. A. N. I., and Abdul Hameed. "Isolation and characterization of various fungal strains from textile effluent for their use in bioremediation." Pakistan Journal of Botany 37, no. 4 (2005): 1003. 466 Taneja, Nisha. "India-Pakistan Trade." ICRIERWorking Paper No 182 (2006). 467 Jauch, Herbert, and Rudolf Traub-Merz. "The textiles and clothing industry in Ghana." (2006).

225 ______k) LABOR RIGHT468

According to the Trade Textile Union, the rights of the labors are mentioned in details and in a comprehensive way.

3.6.4 FRANCHISING IN AUTOMOBILES IN PAKISTAN

There are so many vast fields in Pakistan for franchising in the circle of automobile franchise business like other sectors in Pakistan. So, I would like to speak upon the introduction and history of the automotive industry in Pakistan. So that the readers and researchers may understand easily the concept of Franchising in automobiles in Pakistan. According to an estimate Pakistan automotive industry469 is one the fastest growing industries of the country it accounts for 4% limit of Pakistan’s GDP. Similarly, almost 1800000 people are working in this industry in the country according to the rough estimate. There are 3200 plants are there in Pakistan that are manufacturing automobiles currently. There is an opinion that this industry is investing rupees 92 billion and producing 1.8 million motorcycles and production of 200000 vehicles by annually. It is also a rough estimate that this industry has the contribution of rupees of 50 billion to the national exchequer. This sector and field is very important for this reason because it provides the chances and options of employment almost to 33.5 million people. It also plays a major role in promoting and enhancing the growth of this field in the light of vendor industry. No doubt this industry is considered the smallest one but its growth is fastest one in the South Asia. You will be surprised to know that the number of 180000 automobiles were consumed and sold in the fiscal year of 2014-15 and it was raised to the number of 206777 units in the fiscal year of 2015-16.470

468 Compa, Lance, and Jeffrey S. Vogt. "Labor rights in the generalized system of preferences: a 20-year review." Comp. Lab. L. & Pol'y J. 22 (2000): 199. 469 Goldberg, Pinelopi Koujianou. "Product differentiation and oligopoly in international markets: The case of the US automobile industry." Econometrica: Journal of the Econometric Society (1995): 891-951. 470 Goldberg, Pinelopi Koujianou, and Frank Verboven. "The evolution of price dispersion in the European car market." The Review of Economic Studies68, no. 4 (2001): 811-848.

226 ______Now talking to the present condition of this sector and market is this that HONDA, TOYOTA and SUZUKI are dominating in the market. You will be glad to know that PAK SUZUKI MEHRAN is the most produced car in the Pakistan. It is very good news for the readers that on March 19, 2016, Pakistan approved and passed the policy about this industry that is called, “Auto Policy 2016-21”. This policy encouraged the new people to enter in this field who have interest to make new cars and also give incentives to the new automakers for the establishment of manufacturing plants in the reasonable place in the country. The good response in the name and shape of RENULT NISSAN, AUDI, VOLKX WAGON, KIA MOTORS and HUNDAI came in the market. After the presence of these automobiles in the market the manufacturers of the automotive to show interest and urged to jump and entered in the Pakistani market of automobiles. But in spite of all these things Pakistan is not able to enforce any safety standards of automotives and no up-gradation policy of the models and standard of the automobiles. That is why the obsolete and old models of the vehicles that include the MEHRAN, RAVI and BOLAN are being sold up till now by the authority of PAK SUZUKI.471 a) HISTORY OF AUTOMOBILES IN PAKISTAN

In 1950’s it is very interesting and knowledgeable thing that Pakistan made and produced its first automobile at the national motors plant in 1953, this statement is confirmed by the ministers of this industries and the production. This plant was opened and arranged with the corporation and links with GENERAL MOTORS. The result came in the shape and model of the production of VAUXHALL CARS and BEDFORD TRUCKS with the given facilities of this plant. After this it was began to be assembled buses, cars and light trucks on the same plant. In the same year BEDFORD TRUCKS shared their partnership with ALI AUTOMOBILES and they introduce in the market the new auto-motives just as FORD KOMBI, FORD PICKUPS and

471 Goldberg, Pinelopi K., and Frank Verboven. "Market integration and convergence to the Law of One Price: evidence from the European car market." Journal of international EcWang, Catherine L., and Pervaiz K. Ahmed. "Dynamic capabilities: A review and research agenda." International journal of management reviews 9, no. 1 (2007): 31-51.onomics 65, no. 1 (2005): 49-73.

227 ______FORD ANGLIA. It is very interesting that Pakistan began to produce the automobiles batteries in 1953. Side by side HAROON INDUSTRIES partners and shared with DODGE MOTORS in 1956.472 b) IN 1960’s

In 1960’s ALLWIN ENGINEERING is that company who introduce the auto parts in the lines of Pakistanis auto market in 1961. In addition to these auto parts LAMBRETTA associated with WAZIR ENGINEERING and started to produce the production of LAMBERATTA TV 200 SCOOTER and on the other hand KANDAWALA INDUSTRIES brought the introduction of the JEEP CJ5, 6 and 7 in 1962. General Tire Pakistan also started to produce such like items in 1963 and other on the other hand HYE SONS started to produce and make the MACK TRUCKS. Similarly, the RANA TRACTORS also began to make MASSEY FERGUSON TRACTORS, VESPA SCOOTER and RICKSHA was made and introduce by RAJA AUTOCARS in 1964. In 1965, MANNOO MOTORS started operations on one side and JAFFER INDUSTRY on the other side.473 c) IN 1970’s

In 1970’s many campiness of such types was nationalized. In 1972 a corporation about automobile came into existence that is called PACO (PAKISTAN AUTOMOBILE CORPORATION). In that time, the WAZIR ALI ENGINEERING changed its name in the shape of SINDH ENGINEERING, similarly ALI AUTOS were renamed AWAMI AUTOS, GAHANDARA MOTORS changed his named to NATIONAL MOTORS, HAROON INDUSTRIES renamed as REPUBLIC MOTORS, HYE SONS changed into MAC TRUCKS, KANDAWALA INDUSTRIES renamed NAYADAUR MOTORS, JAFFER INDUSTRIES changed into TRAILER DEVELOPMENT CORPORATION and RANA TRACTOR selected new name MILLAT TRACTOR. In 1974, DAWOOD YAMAHA gave the introduction of YAMAHA

472 473 Wang, Catherine L., and Pervaiz K. Ahmed. "Dynamic capabilities: A review and research agenda." International journal of management reviews 9, no. 1 (2007): 31-51.

228 ______MOTORCYCLE and on the other hand the BETA ENGINEERING had the step to produce the Diesel Engine in the same year. In 1976, Sindh ENGINEERING introduced and launched the Suzuki Motorcycle. Kawasaki Motorcycles was also introduced in 1977 by Saif Nadeem Kawasaki. In 1977 also NAYADAUR MOTORCYCLE started to manufacture the SUZUKI JEEP.474 d) IN 1980’s

In 1980’s SUZUKI PICKUPS were introduced by AWAMI MOTORS and MAZDA TRUCKS was launched by SINDH ENGINEERING. In 1982 vehicles production was started by SUZUKI. In 1983, the VENDOR DEVELOPMENT AND TECHNICAL CELL (VDTC) with the corporation and association with ALGHAZI TRACTORS launched by FIAT. In 1987, GHANDARA NISSAN started to produce and launched NISSAN DIESAL TRUCKS. In 1989, operation was beginning by PAKISTAN ASSOCIATION of auto parts & Accessories Manufacturer.475 e) IN 1990’s

By 1990’s the industry was highly regulated. The nationalization process was stopped in the interest of privatization. The result was that the JAPAN caught 40% share of the PAK SUZUKI in 1991. In 1993, the INDUS MOTOR COMPANY started to produce of TOYOTA COROLLAS. The PAKISTAN AUTOMOTIVE MANUFACTURER ASSOCIATION came into existence in 1994 and on the other hand the HONDA ATLIS started to introduce and launch to manufacture of the HONDA CIVIC.476 f) IN 2000’s

In 2000’s some Pakistani Importers began to import of Chinese CBU BIKES in Karachi from 2001-02. The Chinese Campiness also started to make

474 Banerjee, Prasanta Kumar, and B. Wilson, eds. Developments in Boundary Element Methods: Industrial applications. Vol. 5. CRC Press, 2005. 475 Trent, Edward Moor, and Paul Kenneth Wright. Metal cutting. Butterworth- Heinemann, 2000. 476 Gould, J. E. "Joining aluminum sheet in the automotive industry—A 30-year history." Weld. J 91 (2012): 23-34.

229 ______copies of small Japanese bikes especially of HONDA CD 70. In 2007, the automotive industry touched the limit of 2.8% of PAKISTANS GDP and gave the 16% towards the manufacturing sector. In the same year of 2000’s there was option of dual fuel of petrol and CNG which is very affordable and cheaper for common man and cheaper for all in competition petrol in the country.477 g) IN 2010-PRESENT

From 2010 many smalls auto units of bikes were stopped to work because there was a strict competition among the assembler that is why three Japanese and seven Chinese Assemblers are not working well. In 2010, the sales of the different items of automobile began to increase again. This is because the auto industry invested 20 million rupees during this time. There was a history that motorcycle production beat the record of 1.5 million units in 2010-11. In 2015, the automobile policy 2016-20 was approved and introduce and it helped to launched and introduce of new entry of new item of this industry into the Pakistan and the industry was dominated by HONDA, TOYOTA and SUZUKI. At present, there is a ratio of 10 cars for every 1000 people in Pakistan. No doubt this is the very lowest ratio in any country in the emerging economies. But in the rising and growing condition of interest of the people and the activeness of the workforce and man power in period of next decade will provide and arrange a stimulus and attractive environment for this industry to take it to the expansion and to take it to the top of the growth.478 h) ACTIVE MANUFACTRERS  AFZAL MOTORS  AL-GHAZI TRACTORS  AL-HAJ FAW MOTORS

477 Chaney, Paul K., Timothy M. Devaney, and Russell S. Winer. "The impact of new product introductions on the market value of firms." Journal of Business (1991): 573-610. 478 Ramamurthy, R., P. K. Dutta, and S. A. Akbar. "Oxygen sensors: materials, methods, designs and applications." Journal of materials science 38, no. 21 (2003): 4271-4282.

230 ______ ATLAS HONDA BIKES  CROWN MOTORCYCLES  DEWAN FAROOQ MOTORS  DYL MOTORCYCLES  GANDHARA INDUSTRIES  GANGHARA NISSAN  GHANI AUTOMOBILE INDUSTRIES  HINO PARK MOTORS  SPEED MOTORCYCLES  HERO MOTORCYCLES  HONDA ATLAS  INDUS MOTORS COMPANY  KARAKORAM MOTORS  MASTER MOTORS  MILLET TRACTORS  ORIENT TRACTORS  PAK SUZUKI  PLUM QINGQI MOTORS  RAVI PIAGGIO  ROAD PRINCE BIKES  SAZGAR AUTOS  SIGMA MOTORS  UNITED MOTORCYCLES  VOLVO PAKISTAN  YAMAHA MOTORS PAKISTAN479 i) DEFUNCT MANUFACTRERS i. ADAM MOTORS ii. NECUX MOTORS iii. RAJA MOTORS480

479 Huang, G. Q., P. K. Wright, and Stephen T. Newman. "Wireless manufacturing: a literature review, recent developments, and case studies." International Journal of Computer Integrated Manufacturing 22, no. 7 (2009): 579-594. 480 Lakemond, Nicolette, Christian Berggren, and Arjan Weele. "Coordinating supplier involvement in product development projects: a differentiated coordination typology." R&D Management 36, no. 1 (2006): 55-66.

231 ______3.7 GLIMPSES (ADSPECTUS) OF THE CHAPTER  Explored the events of historical and nonfictional development of franchise business in Pakistan.  Informed about the deep knowledge of this development.  Highlighted the practicable and suitable steps.  Justified the potential of crafting on franchises.  Recommended favorable and recognizable franchise models.  Exemplified the documentary events.  Introduced the franchising in education containing its introduction, types and system in Pakistan.  Discussed the emergence of franchising in education sector.  Specified the social dimension of franchising in education sector.  Brought under discussion the basic rules of franchising.  Figure out some problems and challenges in franchising in education in Pakistan.  Entertained an introduction to Rozenn.  Managed the comprehensive details of franchising in education sector with reference to the Punjab group of colleges, Beacon house school system, the Educator school system, the Country school system, and the American lycetuff school.  Advanced the franchising in Food Sector.  Displayed a list of entrance of franchising in Pharmaceutical sector, Computer Software Sector, Garments Sector and Automobile Sector.

232 ______

CHAPTER 4

PRINCIPLES OF ISLÃMIC FINANCE AND TRADE

233 ______CHAPTER #4

4.1 Introduction 4.2 Islãmic commandment regarding interest and it’s all modern forms 4.2.1 Some important and basic points 4.2.2 Difference between Islãmic economy the approach of capitalistic 4.2.3 Asset-backed financing 4.2.4 RIBÃ(usury/interest) and its forms 4.2.5 Etymology and definition 4.2.6 Definition of RIBÃ include: 4.2.7 Different kinds of RIBÃ 4.2.8 Modernists 4.2.9 Revivalists 4.2.10 Scripture 4.2.11 Qurãn and prohibition 4.2.12 Hadith and prohibition 4.2.13 Importance 4.2.14 Companions and jurists 4.2.15 Scriptural proof FIQH 4.2.16 Rationale 4.3 Islãmic principles of trade-a descriptive report 4.3.1 Knowledge 4.3.2 The state of the things (forbidden or permitted) 4.3.3 Lawful thinks 4.3.4 Trust 4.3.5 Justice and honesty 4.3.6 Mutual respect 4.3.7 Fair trade 4.3.8 Lawful earning (halal) 4.3.9 Mutual agreement 4.3.10 Trade-a way or co-operation among the people 4.3.11 to create facilities in the matters 4.3.12 Good demand of loan 4.3.13 good returning of loan 4.3.14 to speak truth in the dealing 4.3.15 to avoid swearing 4.3.16 to avoid dishonesty 4.3.17 prohibition of old coins 4.3.18 prohibition of harmful trading

234 ______

4.3.19 prohibition of trade for rulers 4.3.20 shortage in measurement 4.3.21 Income of one’s hand 4.3.22 Some causes that change the form of trading regarded as illegal 4.3.23 What is forbidden in Islãm? 4.3.24 General guidance for a Muslim to adopt the following principles 4.4 Islãmic modes of financing/ Islãmic banking/ Shariah-compliant finance 4.4.1 Usury in Islãm 4.4.2 History of Islãmic banking 4.4.3 Principles of Islãmic law about banking 4.4.4 Criticism and objection 4.4.5 Scriptural basis 4.4.6 Interest and credit sales 4.4.7 Types of Islãmic lending 4.4.8 Time value of money 4.4.9 Early payent of debt 4.5 Concept of Shariah compliance: merits and demerits 4.5.1 Merits of Islãmic economic system 4.5.2 Demerits of Islãmic economic system 4.6 Glimpses (adspectus) of the chapter

235 ______4.1 INTRODUCTION Islãmic COMMANDMENTS IN APROPO of RIBÃ (USURY or INTEREST) will be discussed in detail in section 2 of this chapter 4. Basic difference between Islãmic Economy and Capitalistic approaches must be delineated. Denotative and connotative meanings of RIBÃ would be depicted and explained. Formal and circumstantial study would be arranged concerning RIBÃ and its forms namely RIBÃ al-Jahiliah, RIBÃ al-Nasiah, RIBÃ al-Fdl, RIBÃ al-Duyun, RIBÃ al-Buyu and RIBÃ al-Qard, etc. Etymological discussion of the word ``RIBÃ`` will be entertained. Some critical approaches of well-known Modernists and Revivalists have been analyzed and criticized. RIBÃ and its value and position would be clarified and explained in the light of Qurãnic Verses and A hadith. Opinions of companions and jurists would also be justified and discussed in section 2 of this chapter. Islãmic principles of trade with special reference to the distinctive rules of Islãmic trade such as truth, honesty, trust, mutual respect, justice, fair trade, lawful earnings, shortage of measure, and forgery etc. will be discussed in detail and also justified with the help of arguments alluding to the Qurãn and Hadith. In section 4 of this chapter, the real and ideal tools and instruments of Islãmic Banking and Finance are to be considered and elaborated under the caption of ``Islãmic Modes of Banking and Financing. ``legal value of Islãmic elements of financing such as MUSHÃRAKAH, MUDÃRABAH, MURÃBAHAH, SALAM, ISTISNÃ, and IJÃRAH and their significance in Shariah must be highlighted, explained and proved on the basis of empirical theory and approaches. Historical events are also arranged and listed. Some considerable and suitable Islãmic principles of Islãmic law about banking and financing will be illustrated and explored in section 4 of this chapter. Criticism and objections will be accepted, but justified. Types of Islãmic lending are furnished. Concept of Shariah compliance is contained and clarified in section 5. Some prominent and distinctive qualities and values of Islãmic Economic System such as enforcement of Islãmic law, social justice, economic justice, establishment of Bait al-maal, stability in price and maintenance of ethical and moral values have unriddled and figure out with the help of special indications and allusions from the Qurãn and Hadith. On

236 ______the other hand, a list of merits and some demerits of Islãmic System of Economics will also be discussed, explained and justified in section 5 at the end of this chapter.

4.2 ISLÃMIC COMMANDMENT REGARDING INTEREST AND ITS ALL MODERN FORMS 4.2.1 SOME IMPORTANT AND BASIC POINTS It is very necessary to throw light upon the detail about the modes and ways of Islãmic financing.481 It is also very important to give the detailed discussion and to explain the hidden things and important points about the basic methods and principles482 that govern and run the whole and complete economic set-up483 in the field and walks of Islãmic society and life.484 The first, all the Muslims have this believe that whole the universe is controlled by only one, the only one GOD. And this believe is also in the mind of Muslims that the ALLAH485 only one is controlling the universe from every respect. It is also admitted fact that GOD had made and created whole the universe but He appointed the man his vicegerent486 on the ground of Earth for the purpose of fulfilling and completing the important and certain objectives and goal by accepting the orders and commands of his GOD.487 All these commands are not about only the more worship and not about the

481 Zaher, Tarek S., and M. Kabir Hassan. "A comparative literature survey of ISLMIC finance and banking." Financial Markets, Institutions & Instruments10, no. 4 (2001): 155-199. 482 Akkizidis, Ioannis, and Sunil Kumar Khandelwal. "Principles of ISLMIC Finance." In Financial Risk Management for ISLMIC Banking and Finance, pp. 1- 27. Palgrave Macmillan UK, 2008. 483 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005. 484 Gibb, Hamilton Alexander Rosskeen, and Harold Bowen. ISLMIC Society and the West: A Study of the Impact of Western Civilization on Moslem Culture in the Near East. Vol. 1. Oxford University Press, 1950. 485 Hasan, Suhaib. An introduction to the science of Hadith. London: Al-Quran Society, 1994. 486 Ismail, Yusof, and Suhaimi Mhd Sarif. "The role of Tawhidic paradigm in the transformation of management system." (2011): 127-147. 487 Muneeza, Aishath, and Rusni Hassan. "Legal obstacles in Shari’ah corporate governance of ISLMIC financial institutions in Malaysia." The Journal of King Abdulaziz University (JKAU): ISLMIC Economics 24, no. 2 (2011): 207-210.

237 ______so called religious rites and rituals.488 But on the other hand, these commands of ALLAH cover all the fields and aspects of life. These commands are not so difficult for the people to act upon and not difficult for the human activity make it lazy. It means these activities and command that every person and every man have to do some activities positively in this universe.489 There are thoughts of universe about the commands of ALLAH one is Islãm has a balanced and moderate reach and approach to govern and manage the life of the human and on the other hand it has left a long and wide area of the activities of human490 life where he is free to do his decisions on the basis of some reasons, assessment and estimate of facts491 and proof of expediency.492 It is also said on the other hand that Islãm has joined and subjected the activities of human life in the facts of principles which are from GOD and there is no capacity of violation of these rules on the grounds of superficial493 in connection with expediency which is based on assessment of human life. Actually, the fact is lying behind this scheme and routine that the man cannot claim that he has unlimited power to reach and touch top of truth. So, now, it is crystal clear that there are some limitations in the life of community beyond which he cannot work properly and successfully and there are chances to do something wrong. There are numberless domains in the life of human 494where the ‘reason’ has differences and is confused with the competition to the ‘desire’ so all the

488 Goody, Jack. "Religion and ritual: the definitional problem." The British Journal of Sociology 12, no. 2 (1961): 142-164. 489Goody, Jack. "Religion and ritual: the definitional problem." The British Journal of Sociology 12, no. 2 (1961): 142-164. 490 Mima, Tatsuya, Takashi Nagamine, Kaori Nakamura, and Hiroshi Shibasaki. "Attention modulates both primary and second somatosensory cortical activities in humans: a magnetoencephalographic study." Journal of neurophysiology 80, no. 4 (1998): 2215-2221. 491 Hoover, Kevin D. "Facts and artifacts: calibration and the empirical assessment of real-business-cycle models." Oxford Economic Papers (1995): 24-44. 492 Becker, Howard S. "Problems of inference and proof in participant observation." American sociological review 23, no. 6 (1958): 652-660. 493 Clayton, Hilary M., Henk C. Schamhardt, Maarten A. Willemen, Joel L. Lanovaz, and G. Robert Colborne. "Kinematics and ground reaction forces in horses with superficial digital flexor tendinitis." American journal of veterinary research 61, no. 2 (2000): 191-196. 494 Anguita, Davide, Alessandro Ghio, Luca Oneto, Xavier Parra, and Jorge Luis Reyes-Ortiz. "A Public Domain Dataset for Human Activity Recognition using Smartphones." In ESANN. 2013.

238 ______theories of the past which are blocked today and is deserving to be called the salacious495 and they were claimed in their proper times ‘rationale’.496 But with the passage of time after centuries the fallacy came out on the ground and discovered and also the absurdity497 was proved and accepted universally.

Now the readers and researchers will easily come to this decision that it is clear and evident that the duty and responsibility is given and delicate to human being ‘reason’ by its Creator is actually not unlimited. There are so many areas in the life where the human reasons are failed to give proper guidance. All these conditions the ALLAH ALMIGHTY who is the creator of the universe has managed guidance through his profits. So, this is fact that it is the firm belief of every Muslim man that all the commands and orders given and issued by the ALLAH through his messenger HAZART MUHAMMAD (S.A.W.W) are necessary to be followed and Islãm is not a religion of moral and technical teachings,498 some important rituals some unique modes and was of life. But on the other hand, it includes and contains proper guidance in every field and every walk of life in which socio- economic499 fields are also included. So, now, it is clear that obedience from creatures and especially from human beings is demanded and required not only in the form of worship but also in all other spheres of life including economic activities. These activities play an important role in the social circle of society.500

495 Dundes, Alan, and Robert A. Georges. "Some Minor Genres of Obscene Folklore." The Journal of American Folklore 75, no. 297 (1962): 221-226. 496 Horn, John L. "A rationale and test for the number of factors in factor analysis." Psychometrika 30, no. 2 (1965): 179-185. 497 Manning, John F. "The absurdity doctrine." Harvard Law Review 116, no. 8 (2003): 2387-2486. 498 Whitehead, Alfred North. Aims of education. Simon and Schuster, 1967. 499 Ulsrud, Kirsten, Tanja Winther, Debajit Palit, Harald Rohracher, and Jonas Sandgren. "The solar transitions research on solar mini-grids in India: Learning from local cases of innovative socio-technical systems." Energy for Sustainable Development 15, no. 3 (2011): 293-303. 500 Haron, Sudin, and Norafifah Ahmad. "The effects of conventional interest rates and rate of profit on funds deposited with ISLMIC banking system in Malaysia." International Journal of ISLMIC Financial Services 1, no. 4 (2000): 1-7.

239 ______4.2.2 DIFFERENCE BETWEEN ISLÃMIC ECONOMY AND THE APPROACH OF CAPITALISTIC

It is fact that Islãm does not refuse and deny the importance of market forces501 and values of market economy.502 The profit is also allowed and acceptable to a reasonable and considerable extent. There is not total negation of private ownership in Islãm. But there is a great difference between Islãmic economy and capitalistic approach. There is, in secular capitalism,503 uncontrollable and unbridled power to the owner to make decisions about profit and loss.504 They accept no divine power and injunctions and no restrictions. They always want to change rules and regulations by a democratic way. So, such system allows such type of practices in society which create imbalances in the society. So bad practices of interest, habit of gambling fashion of speculative transactions505 start to tend for the concentration of wealth in the hands of some people. In this way, they exploit the people and increase their money by providing bad, immoral, substandard products which are injurious to health. Practice of making unbridled profit makes monopolies of some people on market decisions. When such practices enter in society they paralyses activities of the market create hindrances and hurdles in their natural process and smooth operation. So, the capitalist often claims that the capitalist economy is based on market forces but his claim and argument is not true and it destroys the natural process of supply and demand. This is fact that the natural process can work freely only in an atmosphere of free competition506 and not in a place of

501 Holt, Thomas J., and Eric Lampke. "Exploring stolen data markets online: products and market forces." Criminal Justice Studies 23, no. 1 (2010): 33-50. 502 Van Bavel, Bas. Manors and markets: Economy and society in the Low Countries 500-1600. Oxford University Press, 2010. 503 Smith, Kenneth. "Capitalism." The Wiley‐Blackwell Encyclopedia of Social Theory (1977). 504 Von Mises, Ludwig. Profit and loss. Ludwig von Mises Institute, 2008. 505 Carfì, David, and Francesco Musolino. "Model of possible cooperation in financial markets in presence of tax on speculative transactions." Atti della Accademia Peloritana dei Pericolanti-Classe di Scienze Fisiche, Matematiche e Naturali 91, no. 1 (2013). 506 Callman, Rudolf. "The Law of Unfair Competition." International Lawyer 7, no. 4 (1945): 855.

240 ______monopolies.507 It is true that sometimes a secular capitalist accepts this fact that a certain economic process or activity is not in the full interest of the society, yet, they allow it continue to do activity because it goes against interest a circle of powerful and influential people who power in the legislature on strength of the majority of their own. They deny every authority except democratic majority and rule. They have no trust in God but they have full trust in U.S dollar. They have practically thrown out the thought of divine guidance and recognition of its importance in the field of controlling activities of economic sector. 508

Such kind of bad and immoral practices cannot be rooted out and curbed unless we submit our deeds, our decision and our aspirations to divine authority to obey all its commands and accept them all as absolute truth and importance as super-human injunctions and follow them in all our walks of life at any rate. This is the reality exactly what Islãm wants to do for human being. Islãm appreciates and recognizes private ownership,509 importance of market activities forces and profit motive. The restrictions and bans510 which are imposed by ALLAH ALMIGHTY, who has full power and knowledge without limitations,511 cannot be rooted out, removed and crushed by any power of majority or democracy512 by human being, because ALLAH has full power over everything completely. There are some examples of such ban

507 Machlup, Fritz, and Martha Taber. "Bilateral monopoly, successive monopoly, and vertical integration." Economica (1960): 101-119. 508 Czech, Brian, Paul R. Krausman, and Patrick K. Devers. "Economic associations among causes of species endangerment in the United States: associations among causes of species endangerment in the United States reflect the integration of economic sectors, supporting the theory and evidence that economic growth proceeds at the competitive exclusion of nonhuman species in the aggregate." BioScience 50, no. 7 (2000): 593-601. 509 Shleifer, Andrei. State versus private ownership. No. w6665. National bureau of economic research, 1998. 510 Gng, Aloysius. "In the name of God: The legitimation strategies on the use of Allah in the Malaysian media." (2014). 511 Huda, Qamar-ul. "Knowledge of allah and the ISLMIC view of other religions." Theological Studies 64, no. 2 (2003): 278-305. 512 Downs, Anthony. "An economic theory of political action in a democracy." Journal of Political Economy 65, no. 2 (1957): 135-150.

241 ______and prohibition such as ban on RIBÃ (usury or interest),513 hoarding,514 gambling,515 short-sale,516 doing and dealing transactions in unlawful goods or services,517 speculative deals or transactions518 are the best examples of divine restrictions. No doubt there is a great cumulative effect of such prohibitions in maintaining of balance, promoting distributive justice and enhancing the quality of opportunities.519

4.2.3 ASSET-BACKED FINANCING

It is an exceptionally one of a kind and vital normal for Islãmic financing that it is called an advantage – upheld financing. 520 This the importance or idea 521of financing 522 from the side of industrialist or regular side that the banks budgetary foundations 523 just have influence to execute and bargain in fiscal

513 Saleem, Muhammad. ISLMIC Banking-A $300 Billion Deception: Observations and Arguments on Riba (interest Or Usury), ISLMIC Banking Practices, Venture Capital and Enlightenment. Xlibris Corp, 2006. 514 Ahmad, Mushtaq. Business ethics in Islam. International Institute of ISLMIC Thought (IIIT), 2009. 515 Rosenthal, Franz. Gambling in Islam. Brill, 1975. 516 Mohamad, Saadiah, and Ali Tabatabaei. "ISLMIC hedging: gambling or risk management?" (2008). 517 Hamid, Shaari, Russell Craig, and Frank Clarke. "Religion: a confounding cultural element in the international harmonization of accounting?" Abacus29, no. 2 (1993): 131-148. 518 Siddiqi, Mohammad Nejatullah. "Current financial crisis and ISLMIC economics." Insights 1, no. 3 (2009): 141. 519 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005. 520 Covitz, Daniel, Nellie Liang, and Gustavo A. Suarez. "The Evolution of a Financial Crisis: Collapse of the Asset‐Backed Commercial Paper Market." The Journal of Finance 68, no. 3 (2013): 815-848. 521 Lerner, Joshua. "Venture capitalists and the decision to go public." Journal of financial Economics 35, no. 3 (1994): 293-316. 522 Cherkaoui, Abdessalam, Jonathan Hibbs, Stéphane Emonet, Manuela Tangomo, Myriam Girard, Patrice Francois, and Jacques Schrenzel. "Comparison of two matrix-assisted laser desorption ionization-time of flight mass spectrometry methods with conventional phenotypic identification for routine identification of bacteria to the species level." Journal of clinical mSaunders, Anthony, and Marcia Millon Cornett. Financial institutions management: A risk management approach. Irwin/McGraw-Hill, 2003.icrobiology 48, no. 4 (2010): 1169-1175. 523 Saunders, Anthony, and Marcia Millon Cornett. Financial institutions management: A risk management approach. Irwin/McGraw-Hill, 2003.

242 ______papers and in the field of cash. 524 Thus, they are not permitted to exchange merchandise in various nations and taboo from making inventories.525 Be that as it may, then again, cash isn't viewed as a topic of exchange Islãm aside from in some specific cases.526 There is no inborn estimation of cash in Islãmic back yet it is viewed as a method for trade.527 Each unit of the cash is considered100% equivalent to every other unit of a similar esteem and category. 528 Thus, it is extremely unlikely or put for making benefit by trade of the considerable number of units among themselves or bury se. So, benefit is permitted in Islãm just in this condition when a characteristic utility is sold just for cash or the other sort is this when diverse kind of monetary standards is being traded for each other. In this way, it is clear now that the benefit which is created through the way toward managing of cash of same monetary standards or the papers those speak to them, is called premium and it is precluded and not permitted in Islãm.529 Along these lines, on the in opposition to the regular financing school and establishments, the technique for financing in Islãm is constantly in view of the advantages which are illiquid and expands inventories and makes and makes unique genuine resources. 530

524 Knapp, Georg Friedrich. "The state theory of money." History of Economic Thought Books (1924). 525 Coscarelli, William C. "Development of a decision-making inventory to assess Johnson's decision-making styles." Measurement & Evaluation in Guidance (1983). 526 Ahmad, Abu Umar Faruq, and M. Kabir Hassan. "The time value of money concept in ISLMIC finance." American Journal of ISLMIC Social Sciences 23, no. 1 (2006): 66. 527 Castel, C., M. Schweizer, M. O. Simonnot, and M. Sardin. "Selective removal of fluoride ions by a two-way ion-exchange cyclic process." Chemical Engineering Science 55, no. 17 (2000): 3341-3352. 528 Moschovakis, Yiannis N. "Sense and denotation as algorithm and value." Lecture notes in logic 2 (1994): 210-249. 529 Canner, Glenn B., Stuart A. Gabriel, and J. Michael Woolley. "Race, default risk and mortgage lending: A study of the FHA and conventional loan markets." Southern Economic Journal (1991): 249-262. 530 Gait, Alsadek, and Andrew Worthington. "An empirical survey of individual consumer, business firm and financial institution attitudes towards ISLMIC methods of finance." International Journal of Social Economics 35, no. 11 (2008): 783-808.

243 ______In this way, MUSHÃRAKAH531 and MUDÃRABAH532 are the genuine instruments533 and perfect techniques of financing in SHARI’AH.534 At the point when a lender or financial specialist contributes his cash receiving these two techniques, he will undoubtedly change over the cash into the benefits demonstrating characteristic esteem and utility. Subsequent to changing over it into the advantages, at that point he can win and pick up benefit. So comparably, the method for financing is a similar which received on premise of SALAM535 and ISTISNÃ536 and it likewise makes unique genuine resources. For instance, during the time spent SALAM the lender oversees truly products then he can get benefit by the way toward offering his merchandise in the market. In the state of ISTISNÃ, some unique resources are made by speculator, at that point as a reward of this the lender picks up benefit. 537Money related 538 and MURÃBAHAH539 are not legitimate and unique process or methods of financing.540 Be that as it may,541 to satisfy

531 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005. 532 Chong, Beng Soon, and Ming-Hua Liu. "ISLMIC banking: interest-free or interest-based?" Pacific-Basin Finance Journal 17, no. 1 (2009): 125-144. 533 Kremen, Gary. "Methods, systems and financial instruments for financing renewable energy consumer premises equipment." U.S. Patent Application 11/653,325, filed January 12, 2007. 534 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005. 535 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005. 536 Zarqa, Muhammad Anas. "Istisna Financing of Infrastructure Projects." ISLMIC Economic Studies 4, no. 2 (1997): 69-70. 537 Iqbal, Zamir, and Abbas Mirakhor. An introduction to ISLMIC finance: theory and practice. Vol. 687. John Wiley & Sons, 2011. 538 Sharpe, Steven A., and Hien H. Nguyen. "Capital market imperfections and the incentive to lease." Journal of Financial Economics 39, no. 2 (1995): 271-294. 539 Khattak, Naveed Azeem. "Customer satisfaction and awareness of ISLMIC banking system in Pakistan." African Journal of Business Management 4, no. 5 (2010): 662. 540 Gait, Alsadek, and Andrew Worthington. "An empirical survey of individual consumer, business firm and financial institution attitudes towards ISLMIC methods of finance." International Journal of Social Economics 35, no. 11 (2008): 783-808. 541 Chong, Beng Soon, and Ming-Hua Liu. "ISLMIC banking: interest-free or interest-based?" Pacific-Basin Finance Journal 17, no. 1 (2009): 125-144.

244 ______some essential 542 needs it has been reshaped543 in an appropriate way can be utilized as a strategies or methods for financing, with some legitimate conditions, just in those territories and areas where MUSHÃRAKAH, MUDÃRABAH, SALAM or ISTISNÃ are not in working position because of a few reasons. Now and again, the devices of LEASING and MURÃBAHAH are not acknowledged just thus that the net outcome is now and again same as that net consequence of intrigue based financing or intrigue based obtaining. Most likely, the feedback and protest are consistent with a few cutoff points and as a result of this reason, the SHARI`AH SUPERVISORY BOARD acknowledge this reality and is additionally consistent and settled upon this point they are not all that perfect techniques for financing the utilization of these modes ought to be just in such cases that depend on need and full think and perception about the terms and conditions arranged and recommended by the leading group of SHARI`AH. However, despite every one of these things, the instruments or the devices of Leasing and MURÃBAHAH are additionally totally upheld by resources (resource supported) and financing by these apparatuses is altogether different from that financing called intrigue construct financing with respect to premise of following reasons and grounds.544

 In the ordinary financing framework, advances might be progressed for any beneficial reason. 545 A betting clubhouse can obtain cash from a bank to build up its betting business. An explicit magazine or an organization making naked movies are as great clients of a regular bank as a house- manufacturer. In this way, ordinary financing isn't bound by any heavenly or religious limitations. 546Be that as it may, the Islãmic banks and money

542 Mian, Atif, and Amir Sufi. "House prices, home equity–based borrowing, and the us household leverage crisis." The American Economic Review 101, no. 5 (2011): 2132-2156. 543 Waemustafa, Waeibrorheem, and Azrul Abdullah. "Mode of ISLMIC bank financing: does effectiveness of shariah supervisory board matter?" (2015). 544 Mansoor Khan, M., and M. Ishaq Bhatti. "ISLMIC banking and finance: on its way to globalization." Managerial Finance 34, no. 10 (2008): 708-725. 545 Bryant, John, and Neil Wallace. "The inefficiency of interest-bearing national debt." Journal of Political Economy 87, no. 2 (1979): 365-381. 546 Choi, Thomas Y., and Janet L. Hartley. "An exploration of supplier selection practices across the supply chain." Journal of operations management 14, no. 4 (1996): 333-343.

245 ______related organizations can't stay apathetic about the idea of the movement for which the office is required. They can't influence MURÃBAHAH for any reason which is either disallowed in Shari'ah or is unsafe to the ethical soundness of the general public. 547  It is one of the essential548 necessities for the legitimacy of MURÃBAHAH that the product is acquired by the lender which implies that he accept the danger of the item before pitching it to the client. 549The benefit guaranteed by the agent is the reward of the hazard he accepts. No such hazard is accepted in an intrigue based advance.550  In an enthusiasm bearing advance, the sum to be reimbursed by the borrower continues expanding with the progression of time. In MURÃBAHAH, then again, an offering cost once concurred moves toward becoming and stays settled. Accordingly, regardless of whether the buyer (customer of the Bank) does not pay on time, the dealer (Bank) can't request a higher cost, because of deferral in settlement of contribution. This is on the grounds that in Shari'ah, there is no understanding of time due of cash. 551  In renting as well, financing is offered through giving an advantage having usufruct. The danger of the rented property is expected by the lessor/lender all through the rent time frame as in if the rented resource is completely decimated with no abuse or carelessness with respect to the resident, it is the agent/lessor who will endure the misfortune.552  In customary financing, the lender offers cash to his customer as an enthusiasm bearing credit, after which he has no worry with respect to how

547 Bacha, Obiyathulla I. "Adapting mudarabah financing to contemporary realities: a proposed financing structure." (1997): 26-54. 548 d'Azzo, John Joachim, and Constantine Dino Houpis. Linear control system analysis and design: conventional and modern. McGraw-Hill Higher Education, 1995. 549 Iqbal, Zamir, and Abbas Mirakhor. An introduction to ISLMIC finance: theory and practice. Vol. 687. John Wiley & Sons, 2011. 550 Zaher, Tarek S., and M. Kabir Hassan. "A comparative literature survey of ISLMIC finance and banking." Financial Markets, Institutions & Instruments10, no. 4 (2001): 155-199. 551 Ahmad, Norafifah, and Sudin Haron. "Perceptions of Malaysian corporate customers towards ISLMIC banking products and services." International Journal of ISLMIC Financial Services 3, no. 4 (2002): 13-29. 552 Mansoor Khan, M., and M. Ishaq Bhatti. "Development in ISLMIC banking: a financial risk-allocation approach." The Journal of Risk Finance 9, no. 1 (2008): 40-51.

246 ______the cash is utilized by the customer. On account of MURÃBAHAH, despite what might be expected, no cash is progressed by the agent. Rather, the agent himself buys the item required by the customer. Since this exchange can't be finished unless the customer guarantees the lender that he wishes to buy a product, subsequently, MURÃBAHAH isn't conceivable in any way, unless the agent makes stock. In this way, financing is constantly sponsored by resources.553 It is obvious from the above dialog that each financing in an Islãmic framework makes genuine resources. This is genuine even on account of MURÃBAHAH and renting, in spite of the way that they are not accepted to be perfect methods of financing and are regularly reprimanded for their being near the intrigue based financing in their net outcomes. It is known, then again, that premium based financing does not really make genuine resources, along these lines, the supply of cash through the advances progressed by the budgetary organizations does not ordinarily coordinate with the truly merchandise and ventures delivered in the general public, in light of the fact that the credits make simulated cash through which the measure of cash supply is expanded, and now and then increased without making genuine resources in a similar amount. This hole between the supply of cash and generation of genuine resources makes or powers swelling. Since financing in an Islãmic framework is sponsored by resources, it is constantly coordinated with comparing products and enterprises.554 4.2.4 RIBÃ(USURY/INTEREST) AND ITS FORMS RIBÃ555 is an Arabic word. Translation of this word can roughly be managed as `usury` interest` unjust or exploitative benefits and gains acquired in business or any type of trade in Islãmic law.556 RIBÃ has been mentioned in

553 Zaher, Tarek S., and M. Kabir Hassan. "A comparative literature survey of ISLMIC finance and banking." Financial Markets, Institutions & Instruments10, no. 4 (2001): 155-199. 554 Chong, Beng Soon, and Ming-Hua Liu. "ISLMIC banking: interest-free or interest-based?" Pacific-Basin Finance Journal 17, no. 1 (2009): 125-144. 555 Saleem, Muhammad. ISLMIC Banking-A $300 Billion Deception: Observations and Arguments on Riba (interest Or Usury), ISLMIC Banking Practices, Venture Capital and Enlightenment. Xlibris Corp, 2006. 556 Gait, Alsadek H., and Andrew C. Worthington. "A primer on ISLMIC finance: Definitions, sources, principles and methods." (2007).

247 ______different verses in the Qurãn and also condemned. The number of Qur’anic verses in which it has been mentioned are the following,

3:130, 4:161, 30:39 and 2:275-2:280.557 It has also been mentioned in many and several AHADITH.558 No doubt most of the Muslims agree on this point that the RIBÃ is prohibited in the Qurãn and A Hadith. But on the other hand, most of the Muslims are not agreed on this point that what it is and what it be punished by the human. RIBÃ is the term that Muslim use for interest/USURY that is charged on loan.559 And this is fact that all the Muslims have consensus on this believe that the interest really is called RIBÃ and $2 trillion Islãmic banking industry is based on this point. However, all the scholars of Muslims do not think that all the forms of interest are equal. It means there is not agreement over this point that the interest is a great sin in the Islãmic law or in the Shariah or simply dislike and discouraged (MAKRUH)560 in spite of this if we think an unjust gain561 got form the repayment of the lone than the full name of this type is called RIBÃ an- nasiya.562 It is also a type of RIBÃ. There is another type of RIBÃ that is called RIBÃ-al-fadl,563 in this type the exchange of different or unequal quantities564 all of a sudden happened or on the other side this action has been occurred about qualities of the given commodity.

557 Iqbal, M. "A broader definition of riba." Pakistan Institute of Development Economics working paper (2006). 558 Farooq, Mohammad Omar. "Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum?" (2009). 559 Visser, Wayne AM, and Alastair Macintosh. "A short review of the historical critique of usury." Accounting, Business & Financial History 8, no. 2 (1998): 175- 189. 560 Otterbeck, Jonas. "Music as a useless activity: Conservative interpretations of music in Islam." Shoot the singer! Music Censorship Today (2004). 561 Thomas, Tracy A. "Bailouts, Bonuses, and the Return of Unjust Gains." (2009). 562 Ali, Mohamed, and Haja Mohideen. "ISLMIC terms in English usage." Language in India 9 (2009): 77-102. 563 Ahmad, Abu Umar Faruq, and M. Kabir Hassan. "Riba and ISLMIC banking." Journal of ISLMIC Economics, Banking and Finance 3, no. 1 (2007): 1- 33. 564 Mohammed, Noor. "Principles of ISLMIC contract law." Journal of Law and religion 6, no. 1 (1988): 115-130.

248 ______4.2.5 ETYMOLOGY AND DEFINITION Before Islãm the Arabs used this word (RIBÃ) in the meaning of “increase”.565 In the next period of the Islãm, classical Islãmic Jurisprudence566 the meaning of RIBÃ was used “Cirpulus Value without Counter Part”.567 But the now the difficulty is this that when we want explain it that what is the meaning of RIBÃ and Islãm as the Islãmic Jurist thought it just like Ibn Majah568 and Ibn Kathir.569 They give the quotation of second caliph Umar ibn Khattab570 “There are three things, if God messenger had explained them clearly, it would have been dearer to me than the world and what it contains: “(these are) KALAH, RIBÃ and Khilafaph”.571

4.2.6 DEFINITION OF RIBÃ INCLUDE:  Illegal and unjustified amount572increased in the money that was borrowed or the money that was lent and then it was paid and returned in shape or kind of money increasing it than the original money. Such type of RIBÃ is called `RIBÃ AL-DUYUN (DEBT USURY) ABDEL-RAHMAN YOUSRI. 573  The root meaning word of `increase` is actually` growth`. –SAALIH AL-MUAJJID.574

565 Derbel, Hatem, Taoufik Bouraoui, and Neila Dammak. "Can ISLMIC finance constitute a solution to crisis?" International Journal of Economics and Finance 3, no. 3 (2011): 75. El-Gamal, Mahmoud A. "An economic explication of the prohibition of gharar in classical ISLMIC jurisprudence." ISLMIC Economic Studies 8, no. 2 (2001): 29- 58.566 567 Gonos, George. "Free-splitting revisited: Concealing surplus value in the temporary employment relationship." Politics & society 29, no. 4 (2001): 589-611. 568 Mjah, Ibn. Sunan Ibn Majah. Urdu-Books, 2000. 569 Kathir, Ibn. Tafseer Ibn Kathir. Lulu. com, 2015. 570 Qila’ji, M. R. "Mawsu’ah Fiqh Umar ibn al-Khattab." Kuwait: Maktabah alFalah (1981): 643. 571 Al-Qudsy, S. H. S. I., and A. A. Rahman. "Effective Governance in the Era of CaliphateUmar Ibn Al-Khattab (634-644)." European Journal of Social Sciences 18, no. 4 (2011): 612-624. 572 Hurayra, Mohammad Abu. "Achievement of Maqasid-al-Shariah in ISLMIC Banking: An Evaluation of Islami Bank Bangladesh Limited." Global Journal of Computer Science and Technology (2015).

574 Farooq, Mohammad Omar. "The Riba-Interest Equivalence: Is there an Ijma (consensus)?" Transnational Dispute Management (TDM) 4, no. 5 (2007).

249 ______ Expression of non-equality in any type of exchange-OLIVIER ROY.575  All types of interest, in which there is any type of excess on original or principal amount of loan, are called RIBÃ, INTEREST OR USURY– ORTHODOX.576  The legal scholars have given their interpretation that the Qurãn has prohibited only `fixed increase on return of loan’.577  Interest fixed on some type of loans  Interest fixed on loans for the purpose of consumption  Interest fixed on loans for charging the amount compound of interest  Interest fixed on loans for the poor and needy  Interest fixed on loans for risk-free return 4.2.7 DIFFERENT KINDS OF RIBÃ a) RIBÃ AN-JAHILIYA This type of usury was practiced in time of pre-Islãmic Arabia and is also referred in the Qurãn in verse 3.130. in this type of usury, the amount was `doubled and redoubled`. Mufti Usmani says that this type of transaction was well-known, popular and well-recognized in time of Jahiliya. Two things or item of same types are exchanged in this kind of usury but one or both the parties uses delaying tactics in delivery or in payment for interest.578 b) RIBÃ AN-NASIYA It is a type of RIBÃ or interest in which the increase or increment of the amount on principle some is received due to the extension delay of time of delivery. 579 c) RIBÃ AL-FADL (RIBÃ al-sunna) in this type the excess amount is accrued in a position of sale or in a kind of barter transaction. According to Taqi Usmani this was

575 Ahmed, Khaled. Sleepwalking to Surrender: Dealing with Terrorism in Pakistan. Penguin UK, 2016. 576 Van Schaik, Diederik. "ISLMIC banking." The Arab Bank Review 3, no. 1 (2001): 45-52. 577 Stiglitz, Joseph E., and Andrew Weiss. "Credit rationing in markets with imperfect information." The American economic review 71, no. 3 (1981): 393-410. 578 Farooq, Mohammad Omar. "Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum?" (2009). 579 Ayub, Muhammad. "Qur’an, Hadith and Riba Connotation." Journal of ISLMIC Business and Management 2, no. 2 (2012): 59-98.

250 ______coming on the scene and developed by the prophet Muhammad (P.P.U.H) and it was not seen in period of pre-Islãmic Jahiliya. 580 d) RIBÃ DUYUN Unjustified excess of money on and above the principal amount when the money is lent in a position of cash.581 e) RIBÃ BUYU It takes place and occurs in position of trade and in a process of exchange of transaction when unequal exchange of pet and certain items of commodities such as silver, gold and dates, etc. are of same kind same basis are there in market.582 f) RIBÃ QARD Increment or increase on principal amount of the loan as the parties are agreed on at the time of deed and contract.583

4.2.8 MODERNISTS

In the century of 19th late a reaction on the seen against the European power and influence in the time of Ages of “Enlightenment”, “Discovery” and Colonialism. In this age, the orthodox considered again the ban and prohibition on interest and those people are called Islãmic Modernist.584 There is a very great scholar and author of that time whose name is Gilles Kepel. He also gave his opinions about the rates of interest and insurance in

580 Farooq, Mohammad Omar. "Stipulation of excess in understanding and misunderstanding riba: the al-jassas link." Arab Law Quarterly 21, no. 4 (2007): 285-316. 581 Khorasi, Aasif. "An Analysis of ISLMIC Finance Framework, Authority in Islam and a Need for Paradigm Shift in ISLMIC Finance." PhD diss., The British University in Dubai (BUiD), 2014. 582 Oziev, Gapur, and Muhamad Hafizi MB Zaidon. "Currency Exchange: Its Illah and Implications." Journal of ISLMIC Finance 5, no. 1 (2016): 45-52. 583 Hameed, Irshad. "The Financing of Real Estate in ISLMIC Finance: A Critical Examination of the Bai-Bithaman Ajil and the Musharikah Mutanaqisah Models of Real Estate Financing." (2013). 584 Parray, Tauseef Ahmad. "ISLMIC Modernist and Reformist Thought: A Study of the Contribution of Sir Sayyid and Muhammad Iqbal." World Journal of ISLMIC History and Civilization 1, no. 2 (2011): 79-93.

251 ______the field of RIBÃ on different platform in the society but against the rule that are mentioned in the Holy Qurãn.585

4.2.9 REVIVALISTS

In the time of 20th century such like of scholars are called Islãmic Revivalists or activists or Islãmist.586 He worked day and night to explain and revive the meaning of interest and to elaborate and rejuvenate the meaning of interest as RIBÃ. They also encourage the Muslim to lend and borrow freely at “Islãmic Banks”. 587But they advised them to be a side from getting on fixed rates and they also increased pressure on the government to impose ban on getting or charging of interest. In 1976 the first international conference of Islãmic Economics was arranged and organized by King Abdul Aziz University in Jeddah in the city of Makkah. According to an estimate “Several hundred Muslims intellectuals, Economists and Shariah Scholars without any hesitation declared that all the forms of interest were called RIBÃ.”588 The result of the preaching of this thing was that three hundred banks and two fifty mutual funds all over the world arranged the definition of RIBÃ and came to this decision to disavow interest a loan or deposits by 2009. And in addition to this by 2014 $2 U.S Trillion of the assets were present “Shariah- Compliant”.589

585 Vidino, Lorenzo. "Aims and methods of Europe's Muslim Brotherhood." Current Trends in Islamist Ideology 4 (2006): 22. . 586 Ziadeh, Nicola A. Sanūsīyah: a study of a revivalist movement in Islam. Vol. 31. Brill Archive, 1983. 587 Wajdi Dusuki, Asyraf, and Nurdianawati Irwani Abdullah. "Why do Malaysian customers patronise ISLMIC banks?" International Journal of Bank Marketing 25, no. 3 (2007): 142-160. 588 Zarqa, M. Anas. "Stability in an interest-free ISLMIC economy: A note." Pakistan Journal of Applied Economics 2, no. 2 (1983): 181-188. 589 Derigs, Ulrich, and Shehab Marzban. "New strategies and a new paradigm for Shariah-compliant portfolio optimization." Journal of Banking & Finance33, no. 6 (2009): 1166-1176.

252 ______4.2.10 SCRIPTURE 590

There are so many Qurãnic verses and the A hadith of Muhammad (P.P.U.H) in which RIBÃ has been stated and mentioned clearly. On one side, Orthodox Scholars such as Muhammad Nijatullah and Taqi Usmani, they defined and mentioned the different of verses of Qurãn and explain the meaning of RIBÃ as any payment “over and above the principle” of a lone. On the other hand, according to the opinion of non-Orthodox Economist who name is Mohammad Omer Farooq, he says “Qurãn does not clearly define RIBÃ.” There are some others non-Orthodox Scholars such as Farhad Noumani and Abdul Kader Thomas, they accept the importance and value of a hadith in the field of RIBÃ.

4.2.11 QURÃN AND PROHABITION ۡ َٰ ٱلَّ ذي َنۡۡيَأ كل و َنۡٱل ربَ َٰواْۡۡ َلۡيَق و مو َنۡإ َّلۡ َك َماۡيَق و مۡٱلَّ ذيۡيَتَ َخبَّ طه ۡٱل َّشۡي َط نۡۡ مۡ َنۡ ۡ َٰ ۡ ۡ ۡ ٱل َم سۡۡذَ ل َكۡب أَنَّ ه ۡمۡ َقال ٓواْۡإ نَّ َماۡٱلبَۡي عۡۡ مث لۡٱل ربَ َٰواْۡۡ َوأَ َح َّلۡٱ َّّۡلل ۡٱلبَۡي َعۡۡ َو َح َّر َمۡٱل ربَ َٰواْۡۡ َف َمنۡ َجآ َءهۡ ۥۡ َم ۡو ع َظ ةۡ منۡ َّرب هۡۦۡ َفۡٱنتَ َه َٰىۡۡ َف َلهۡ ۥۡ َماۡ َس َل َفۡ َوأَ ۡم رهۡ ۥٓۡإ َلىۡٱ َّ ه ّللۡۡ َو َم ۡنۡ َعادَۡ َٰٓ َفأ ْو َلئ َكۡأَ ۡص ََٰح بۡٱلنَّا ه رۡۡ ه ۡمۡف ي َهاۡ ََٰخ لد و َن٢٣٥ۡۡ ۡ

(1) Those who swallow down usury cannot arise as one whom Shaitian has prostrated by (his) touch does rise. That is because they say, trading is only like usury; and ALLAH has allowed trading and forbidden usury. To whomsoever then the admonition has come from his Lord, then he desists, he shall have what has already passed, and his affair is in the hands of ALLAH; and whoever returns (to it) -- these arc the inmates of the fire; they shall abide in it. (Qurãn Al-Baqarah, 2: 275 َٰ يَ ۡم َح قۡۡٱ َّّۡلل ۡٱل ربَ َٰواْۡۡ َوي ۡرب يۡٱل َّصدَ َق تۡۡ َوۡٱ َّّۡلل ۡ َلۡي ح ُّبۡ ك َّلۡ َكفَّا ٍرۡأَث ي ٍم٢٣٢ۡۡ (2) ALLAH does not favor usury, and He makes altruistic deeds flourish, and ALLAH does not love any selfish delinquent. (Qurãn, Al-Baqarah, 2: 276)

590 Shaikh, Salman Ahmed. "ISLMIC Banking in Pakistan: A Critical Analysis." Journal of ISLMIC Economics, Banking and Finance 9, no. 2 (2013): 45-62.

253 ______ٓ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡٱتَّق واْۡۡٱ َّّۡللَۡ َوذَ رواْۡ َماۡبَ ق َيۡ م َنۡٱل ربَ َٰٓواْۡۡإ نۡ كنت مۡ ُّم ۡؤ من ي َن٢٣٢ۡۡ (3) O you who accept! Be watchful of (your obligation to) ALLAH and surrender what stays (due) from usury, on the off chance that you are devotees. (Qurãn, Al-Baqarah, 2: 278) ٓ ۡ ه َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡ َلۡتَأ كل واْۡٱل ربَ َٰٓواْۡۡأَ ۡض َٰعَ ٗفاۡ ُّم ََٰضعَ َف ٗةۡ َوۡٱتَّق واْۡۡٱ َّّۡللَۡ َلعَلَّ كۡ ۡمۡت ۡف ل حو َنۡ ١٣١ۡ

(4) O you who accept! try not to eat up usury, influencing it to twofold and increase, and be watchful of (your obligation to) ALLAH, that you might be effective. (Qurãn, Ali-Imran, 3: 130) َوأَ ۡخ ذ ه مۡۡٱل ربَ َٰواْۡۡ َو َق ۡدۡن هواْۡ َعۡنه ۡ َوأَ ۡك ل ه ۡمۡأَ ۡم ََٰو َلۡٱلنَّا سۡۡبۡ ٱۡل َٰبَ ط لۡۡ َوأَ ۡعتَ ۡدنَاۡ لۡل ََٰك ف ري َنۡۡ مۡن ه ۡمۡ َعذَابًاۡأَ لي ٗما١٢١ۡۡ ۡ (5) And their taking usury however to be sure they were taboo it and their eating up the property of individuals dishonestly, and We have arranged for the unbelievers from among them an agonizing reprimand. (Qurãn, A Nisa, 4: 161) َو َماۡٓۡ َءاتَۡيت مۡ منۡ رٗباۡ ل يَ ۡرب َواْۡف ٓيۡأَ ۡم ََٰو لۡٱلنَّا سۡۡ َف َالۡيَ ۡرب واْۡ عندَۡٱ َّ ه ّللۡۡ َو َمآۡ َءاتَۡۡيت مۡ منۡ َٰٓ َز َك َٰو ٖةۡت ريد و َنۡ َو ۡجهَۡٱ َّ ّللۡۡ َفأ ْو َلئ َكۡ ه مۡٱۡل م ۡض عف و َن٣٣ۡۡۡ (6) And whatever you lay out as usury, so it might increment in the property of men, it should not increment with ALLAH; and whatever you give in philanthropy, wanting ALLAH's pleasure- - it is these (people) that might get complex. (Qurãn, Ar-Rom, 30: 39) 4.2.12 HADITH AND PROHABITION 591

Keeping in view the above mentioned Qurãnic verses in connection with RIBÃ some Muslims scholars just as Youssouf Fofana and Taqi Usmani, Muhammad Nijatullah Sadiqi, Muhammad Jarir Al-Tabari, Al-jawzi, Hassan Al-Basri, Ibn Hajar Asqalani, Fakhr Al-Din Al-Razi, Ibn Rushd, Ibn Majah and some other scholars discussed in detail the Qurãnic verses and explain to the depth of the meaning of the RIBÃ.

a) General

 From Jabir: The Prophet, may reviled the recipient and the payer of intrigue, the person who records it and the two observers to the exchange

591 Farooq, Mohammad Omar. "Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum?" (2009).

254 ______and stated: "They are for the most part indistinguishable [in guilt]." (Muslim, Kitab al-Musaqat, Bab la'ni akili al-RIBÃ wa mu'kilihi; likewise, in Tirmidhi and Musnad Ahmad)  Jabir ibn 'AbdALLAH, giving a give an account of the Prophet's Farewell Pilgrimage, stated: The Prophet, tended to the general population and said "The greater part of the RIBÃ of Jahiliya is invalidated. The primary RIBÃ that I abrogate is our RIBÃ, that accumulating to 'Abbas ibn 'Abd al- Muttalib [the Prophet's uncle]; it is being wiped out totally." (Muslim, Kitab al- Hajj, Bab Hajjati al-Nabi, may likewise in Musnad Ahmad)  From 'AbdALLAH ibn Hatzalah: The Prophet, stated: "A dirham of RIBÃ which a man gets purposely is more awful than conferring infidelity thirty-six times" (Mishkat al-Masabih, Kitab al-Buyu', Bab al-RIBÃ, on the expert of Ahmad and Daraqutni). Bayhaqi has likewise detailed the above hadith in Shu'ab al-iman with the expansion that "Hellfire befits him whose substance has been fed by the unlawful."  From Abu Hurayrah: The Prophet, stated: "the evening of Ascension I happened upon individuals whose stomachs resembled houses with snakes obvious all things considered. I asked Gabriel their identity. He answered that they were individuals who had gotten intrigue." (Ibn Majah, Kitab al-Tijarat, Bab al-taghlizi fi al-RIBÃ; additionally, in Musnad Ahmad)  From Abu Hurayrah: The Prophet, stated: "RIBÃ has seventy sections, the minimum genuine being comparable to a man submitting infidelity with his own mom." (Ibn Majah)  From Abu Hurayrah: The Prophet, stated: "There will surely come a period for humanity when everybody will take RIBÃ and on the off chance that he doesn't do as such, its clean will contact him." (Abu Dawood, Kitab al-Buyu', Bab fi ijtinabi al-shubuhat; likewise, in Ibn Majah)  From Abu Hurayrah: The Prophet, stated: "God would be advocated in not enabling four people to enter heaven or to taste its favors: he who drinks constantly, he who takes RIBÃ, he who usurps a vagrant's property without right, and he who is undutiful to his folks." (Mustadrak al-Hakim, Kitab al-Buyu')

255 ______b) RIBÃ an Nasiyah592  From Usama ibn Zayd: The Prophet, stated: "There is no RIBÃ with the exception of in Nasiyah [waiting]." (Bukhari, Kitab al-Buyu', Bab Bay' al- denarii bi al-dinar nasa'an; likewise, Muslim and Musnad Ahmad) "There is no RIBÃ close by to-hand [spot] exchanges." (Muslim, Kitab al-Musaqat, Bah bay'i al-ta'ami mithlan bi mithlin; additionally, in Nasa'i)  From Ibn Masoud: The Prophet, stated: "Notwithstanding when intrigue is much, it will undoubtedly wind up into immateriality." (Ibn Majah, Kitab al-Tijarat, Bab al-taghlizi fi al-RIBÃ; additionally, in Musnad Ahmad)  From Anas ibn Malik: The Prophet, stated: "When one of you concedes a credit and the borrower offers him a dish, he ought not acknowledge it; and if the borrower offers a ride on a creature, he ought not ride, unless both of them have been beforehand acclimated with trading such supports commonly." (Sunna al-Bayhaqi, Kitab al-Buyu', Bab kulli qardin jarra manfa'atan fa huwa RIBÃn)  From Anas ibn Malik: The Prophet, stated: "If a man stretches out a credit to somebody he ought not acknowledge a blessing." (Mishkat, on the specialist of Bukhara's Tarikh and Ibn Taymiyyah's al-Muntaqa)  From Abu Burdah ibn Abi Musa: I came to Madinah and met 'AbdALLAH ibn SALAM who stated, "You live in a nation where RIBÃ is wild; consequently, in the event that anybody owes you something and presents you with a heap of feed, or a heap of grain, or a rope of straw, don't acknowledge it for it is RIBÃ." (Mishkat, given an account of the expert of Bukhari)  Fadalah ibn 'Ubaid said that "The advantage got from any advance is one of the diverse parts of RIBÃ." (Sunan al-Bayhaqi) This hadith is mawquf inferring that it isn't really from the Prophet; it could be a clarification gave by Fadalah himself, a partner of the Prophet.

592 ABDUL RAHMAN, Abdul Rahim. "< ISLMIC Economics: Theoretical and Practical Perspectives in a Global Context> ISLMIC Microfinance: A Missing Component in ISLMIC Banking." (2007).

256 ______c) RIBÃ al-FadI593  From 'Umar ibn al-Khattab: The last verse to be uncovered was on RIBÃ and the Prophet, was taken without disclosing it to us; along these lines, surrender RIBÃ as well as raibah [whatever brings questions up in the psyche about its legitimate ness]. (Ibn Majah,)  The Prophet, stated, "Offer gold in return of comparable gold, offer silver in return of identical silver, offer dates in return of proportional dates, offer wheat in return of proportionate wheat, offer salt in return of equal salt, offer grain in return of equal grain, however in the event that a man executes in abundance, it will be usury (RIBÃ). Be that as it may, offer gold for silver at any rate you please on the condition it is hand-to-hand (spot) and offer grain for date at any rate you please on the condition it is hand-to-hand (spot)."  From Abu Sa'id al-Khudri: The Prophet, stated: "Don't offer gold for gold aside from when it resembles for like, and don't expand one over the other; don't offer silver for silver with the exception of when it resembles for like, and don't build one over the other; and don't offer what is away [from among these] for what is prepared." (Bukhari, Kitab al-Buyu', Bab bay'i al- fiddati bi al-fiddah; additionally, Muslim, Tirmidhi, Nasa'i and Musnad Ahmad)  From 'Ubada ibn al-Samit: The Prophet, stated: "Gold for gold, silver for silver, wheat for wheat, grain for grain, dates for dates, and salt for salt - like for like, measure up to for equivalent, and hand-to-hand; if the items contrast, at that point you may offer as you wish, gave that the trade is hand- to-hand." (Muslim, Kitab al-Musaqat, Bab al-sarfi wa bay'i al-dhahabi bi al- waraqi naqdan; likewise, in Tirmidhi)  From Abu Sa'id al-Khudri: The Prophet, stated: "Gold for gold, silver for silver, wheat for wheat, grain for grain, dates for dates, and salt for salt - like for like, and hand-to-hand. Whoever pays progressively or takes more has enjoyed RIBÃ. The taker and the provider are similar [in guilt]." (Muslim, in the same place; and Musnad Ahmad)

593 Zaheer, Khalid. "Why Is Riba Al-Fadl Unacceptable?" Renaissance: Monthly ISLMIC Journal (2004).

257 ______ From Abu Sa'id and Abu Hurayrah: A man utilized by the Prophet, in Khaybar brought for him janibs [dates of fine quality]. Upon the Prophet's soliciting him whether every one of the dates from Khaybar were such, the man answered this was not the case and included that "they traded a sa' [a measure] of this kind for a few [of the other kind]". The Prophet, answered, "Don't do as such. Offer [the bring down quality dates] for dirhams and after that utilization the dirhams to purchase janibs. [When dates are traded against dates] they ought to be equivalent in weight." (Bukhari, Kitab al- Buyu', Bab idha arada bay'a tamrin bi tamrin khayrun minhu; additionally, Muslim and Nasa'i)  From Abu Sa'id: Bilal conveyed to the Prophet, a few barni [good quality] dates whereupon the Prophet asked him where these were from. Bilal answered, "I had some sub-par dates which I traded for these - two sa's for a sa'." The Prophet stated, "Gee golly, this is precisely RIBÃ. Try not to do as such, however when you wish to purchase, offer the sub-par dates against something [cash] and afterward purchase the better dates with the value you get." (Muslim, Kitab al-Musaqat, Bab al-ta'ami mithlan bi mithlin; additionally, Musnad Ahmad)  From Fadalah ibn 'Ubayd al-Ansari: upon the arrival of Khaybar he purchased a neckband of gold and pearls for twelve dinars. On isolating the two, he found that the gold itself was equivalent to more than twelve dinars. Along these lines, he said this to the Prophet, who answered, "It [jewellery] must not be sold until the point when the substance has been esteemed independently." (Muslim, Kitab al-Musaqat, Bab bay'i al-qiladah fiha khara- zun wa dhahab; likewise, in Tirmidhi and Nasa'i)  From Abu Umamah: The Prophet, stated: "Whoever makes a proposal for his sibling and acknowledges a blessing offered by him has entered RIBÃ through one of its vast doors." (Bulugh al-Maram, Kitab al- Buyu', Bab al-RIBÃ, covered the expert of Ahmad and Abu Dawood)  From Anas ibn Malik: The Prophet, stated: "Misdirecting a mustarsal [an accidental participant into the market] is RIBÃ." (Suyuti, al-Jami' al- Saghir, under the word ghabn; Kanz al-'Ummal, Kitab al-Buyu', al-Bab al- thani, al-fasl al-thani, on the specialist of Sunan al-Bayhaqi)

258 ______ From 'AbdALLAH ibn Abi Awfa: The Prophet, stated: "A najish [one who fills in as a specialist to offer up the cost in an auction] is a reviled taker of RIBÃ." (Cited by Ibn Hajar al-'Asqalani in his analysis on Al-Bukhari called Fath al-Bari, Kitab al-Buyu', Bab al-najsh; likewise, in Suyuti, al-Jami al- Saghir, under the word al-najish and Kanz al-'Ummal, operation. cit., both on the specialist of Tabarani's al-Kabir). 4.2.13 IMPORTANCE

The holy prophet has strictly prohibited the practice of RIBÃ. So, the scripture about RIBÃ is not vague or ambiguous or mutashabihat but it is very clear and vivid. The non-orthodox must understand the importance of scripture and not deny. In this connection, ABU HURAIRA narrates the hadith to indicate and explain the point of the orthodox,

The Holy Prophet stated, 'Stay away from the seven extraordinary ruinous sins`. The general population ask, `O GOD`S Apostle What are they? He stated, `to connect others in venerate alongside God, to hone magic, to kill the life which God has illegal with the exception of a worthwhile motivation (as per Islãmic law), to eat up RIBÃ (usury), to eat up orphan`s riches, to offer back to the adversary to escape from the war zone at the season of battling, and to blame virtuous ladies who never at any point consider anything touching virtuousness and are great adherents. `

According to Sunnah ibn Majah, The Holy prophet Hazrat Muhammad has declared and stated that the practice and habit of RIBÃ is worse than, `a man committing Zina (fornication) with his own mother, `

Now it is clear that the practice of RIBÃ is not allowed in Islãm because it is harmful to the people and society against will and command of ALLAH and His Prophet (P.P.U.H).

259 ______4.2.14 COMPANIONS AND JURISTS

Keeping in view the Qurãnic Ayat 3.130, following notes and points have been expressed by some companions (sahabah) and jurists. So, Imam Ahmed ibn Hanbal had this belief that RIBÃ an-Jahiliya only was unlawful. Similarly, several sahabah of Muhammad such as Usama bin Zayd, Abdullah ibn Masud, Urwah ibn Zubayr, Zayd ibn Arqam and ibn Abbas had this opinion that RIBÃ an-Jahiliya is only unlawful form of RIBÃ.594

4.2.15 SCRIPTURAL PROOF FIQH

According to Abdulkader Thomas, there are only six hadith for the Muslims in whose light they define all types of interest as RIBÃ. For example,

Madhhab (Schools of thought or FIQH, they difference of opinions in the explanation and interpretation of RIBÃ. The Shafi`i school of thought says injunctions and commandments for RIBÃ only apply to the item of gold and of silver currency but not to the item of fils (non-precious metal currency).595 a) IMAD-AD-DEAN

He says the word `RIBÃ` has been used in the Qurãn and Sunnah. It is not used in the same meaning as `interest`. It is only used to include involve the loans in the kind of gold and silver currency.596 b) M.O. FAROOQ

He is the critic of the all-interest-is-RIBÃ formulation. He makes many criticisms on hadith and RIBÃ. He says that even a shih hadith gives `probabilistic` and do not provide `authentic or certain knowledge. He discusses word `zulm` in detail and says it is very difficult to define it properly. There are so many differences among Muslims in this connection. So, like

594 Nomani, Farhad. "The Interpretative Debate of the Classical ISLMIC Jurists on Riba (Usury)." In Proceedings of the Middle East Economic Association, vol. 4. 2002. 595 Siddiqi, Mohammad Nejatullah. Riba, Bank Interest and the Rational of its Prohibition. No. 205. The ISLMIC Research and Teaching Institute (IRTI), 2004. 596 Cardini, Franco. "Europe and Islam: Encounters and Confrontations." The Boundaries of Europe: From the Fall of the Ancient World to the Age of Decolonisation 1 (2015): 76.

260 ______this word RIBÃ is also a disputed word and its definition is also confused not same as RIBÃ. He says that two orthodox writers (Abu Umar FARUQ and M. KABIR HASAN have also admitted this fact in their writings. He also says that some scholars of early time (IMAM RAZI and IBN QAYYIM) the real purpose of prohibiting the interest is to stop the action of exploiting the needy and the poor.597 c) ABDULLAH SAEED

He registers many complaints against the different schools of thoughts and says that they all have forgotten the real thing i.e. `rationale or wisdom (hikmah) and at once arrived and reached at a legal `cause` (illa) which had no connection with circumstances of the process of deal, with parties and with commodities.598

4.2.16 RATIONALE There is a long list of the orthodox scholars, revivalist scholars, Islãmist scholars, preachers, writers and economists who have discussed RIBÃ in detail and have advanced so many arguments on the philosophy of prohibiting the interest on loans. They say they could not understand the hikmat (wisdom or philosophy) of such commandments of ALLAH and His prophet. But on the other side, the orthodox scholars emphasize and stress the importance and value of obedience compliance over the `reason. So, this fact that when ALLAH decides something better for His creatures, no doubt, there is a great and ultimate hikmat in His decision. So, at the end of discussion, I am of this opinion that we should not waste our time in such discussions, proofs, opinions and arguments which are against the commandments of ALLAH, without wasting the further time, we should bow our heads before ALLAH and His prophet and obey all their decisions in all

597 Farooq, Mohammad Omar. "Riba, Interest and Six Hadiths: Do We Have a Definition or a Conundrum?" (2009). 598 Saeed, Abdullah. ISLMIC banking and interest: A study of the prohibition of riba and its contemporary interpretation. Vol. 2. Brill, 1996.

261 ______walks of life without any objection. So that we may succeed in this world and hereafter also.599

4.3 ISLÃMIC PRINCIPLES OF TRADE-A DESCRIPTIVE REPORT

Islãm is a religion which guides us about all the works of life. So, that is why it is called a complete code of life so it gives the complete guidance about the principles and methods of trading in all the items in this world. Trading is the very important field of life because it a man wants to live in this world with courage and dare, he has to earn to survive life. The action of doing trade or business is the same way of earning money to increase our income to facilitate our life. But when we want to earn money we bound to act upon some limitation given by God and Prophet. So, first of all we shall discuss the important rules, important principles and laws given in the Shariah for doing the business and trade in Islãm. First of we shall discuss the principles of trading according to the school of thoughts of Imam Ash Shafii. According to Shafii schools of thoughts, some important principles of trading are the following:

“Whoever desires the worldly benefits, shall be knowledgeable and whoever desire the benefits in the hereafter, also shall be knowledgeable”600

4.3.1 KNOWLEDGE

This beautiful advice is very important and deserves to be written with golden ink. It means we should not jump into the sea without knowing the way to swing in the water. Similarly, this is a great lesson from us from this translation that we should not start any business or trade without sufficient knowledge. It is very simple if we try to act upon the commandments of ALLAH without knowledge there are chance to sink into the sea of innovations. The same case is with the worldly activities, without knowledge,

599 Zamir, Zahid. "Prohibition of Interest (Riba) in Islam–The Social, Moral and Economic Rationale (Part i)." 600 Thambipillai, Pushpa. "Brunei Darussalam: A Time for Stock Taking." Southeast Asian Affairs 2015, no. 1 (2015): 65-85.

262 ______there are chances for us to perform unlawful actions or thinks which will through or plunge us into the sea of doom.

In connection with this statement a long time before that Caliph Umar (R.A) had given a very useful advice to all Muslims which are following:

“None should trade in our markets but the knowledgeable one, because if not, he shall certainly will consume usury”. (Ibn-Abdil Bar Al-Maliki) 601

Similarly, this statement also was stated by Imam Malik and Imam At- Tirmidhi which is following:

“None should trade in our market but those who have sufficient religious knowledge”

To explain these two statement Imam Al-Qurthuby Al-Maliki has given his opinion that is following:

“One who has not knowing about the laws of trading, all though his beads are not prevented, does not deserve to be fully trusted in managing his wealth. This is because he cannot differ the unlawful from the lawful trading, from a forbidden from a league transaction. Also, he is susceptible to do practice usury and other forbidden transactions. This is also applied for infidels who live in Islãmic countries” (Ahkaamul Qurãn by Imam Al-Qurthuby Al-Maliki).

4.3.2 THE STATE OF THE THINGS (FORBIDDEN OR PERMITTED)

It is fact, that Shariah is not limited knowledge. In every place and in every period, it has its own different and distinct method and model of interactions and transections among the people that is very different and unique to other time period and other places. So, it is not wise to say that Shariah has its limitations and confinement in the condition of interaction for a specific and particular place. So, it is clear now that Shariah has flexible rules and

601 Yusuf, D. R. A. B. U. B. B. I., Nuradli Ridzwan Shah Bin Mohd Dali, and Norhayati Mat Husin. "THE IMPLEMENTATION OF GOLD DINAR IS IT THE END OF SPECULATIVE MEASURES?" Journal of Economic Cooperation23, no. 3 (2002): 71-84.

263 ______principles for trading that is changeable according to the time, place and situations of the things. In this connection, the first argument and proof are a principle in Islãmic Jurisprudence that explain and states that is following:

“The original (basic) law for everything is permitted, unless there is indication that shows the forbidden state of it”

There is great support in the Qurãn with some indications and Sunnah that is following:

ه َوۡۡٱلَّ ذيۡ َخ َل َقۡ َل كمۡ َّماۡف يۡٱ ۡۡلَ ۡر ضۡۡ َج مي ٗعاۡث َّمۡٱ ۡستَ َو َٰٓىۡۡإ َلىۡٱل َّس َمآ ءۡۡ َف َس َّو َٰى ه َّنۡ َسۡب َعۡ َس ََٰم ََٰو ٖتۡ َو ه َوۡب ك لۡ َش ۡي ٍءۡ َع لي م٢٣ۡ

"It is He who made for all of you that the earth contains; at that point He swung to the sky and made them seven skies — and He is the knower of all things." (2:29)

Similarly, the Holy prophet (P.P.U.H) says about this statement:

“You are more knowledgeable about your worldly affairs” (Muslim)

4.3.3 LAWFUL THINKS

About this principle ALLAH says in the Holy Qurãn: ۡ َٰ ٱلَّ ذي َنۡۡيَأ كل و َنۡٱل ربَ َٰواْۡۡ َلۡيَق و مو َنۡإ َّلۡ َك َماۡيَق و مۡٱلَّ ذيۡيَتَۡ َخبَّ طه ۡٱل َّشۡي َط نۡۡ مۡ َنۡ ۡ َٰ ۡ ۡ ۡ ٱل َم سۡۡذَ ل َكۡب أَنَّ ه ۡمۡ َقال ٓواْۡإ نَّ َماۡٱلبَۡي عۡۡ مث لۡٱل ربَ َٰواْۡۡ َوأَ َح َّلۡٱ َّّۡلل ۡٱلبَۡي َعۡۡ َو َح َّر َمۡٱل ربَ َٰواْۡۡ َف َمنۡ َجآ َءهۡ ۥۡ َم ۡو ع َظ ةۡ منۡ َّرب هۡۦۡ َفۡٱنتَ َه َٰىۡۡ َف َلهۡ ۥۡ َماۡ َس َل َفۡ َوأَ ۡم رهۡ ۥٓۡإ َلىۡٱ َّ ه ّللۡۡ َو َم ۡنۡ َعادَۡ َٰٓ َفأ ْو َلئ َكۡأَ ۡص ََٰح بۡٱلنَّا ه رۡۡ ه ۡمۡف ي َهاۡ ََٰخ لد و َن٢٣٥ۡۡ

(1) Those who swallow down usury can't emerge with the exception of as one whom Shaitan has prostrated by (his) touch rises. That is on account of they say, exchanging is just similar to usury; and ALLAH has permitted exchanging and prohibited usury. To whomsoever then the rebuke has originated from his Lord, at that point he stops, he might have what has just passed, and his undertaking is in the hands of ALLAH; and whoever returns

264 ______(to it) - these circular segments the prisoners of the fire; they should dwell in it. (Qurãn, Al-Baqarah, 2: 275) The Prophet Hazrat Muhammad (P.P.U.H) of ALLAH also says:

“If two men’s doing transections, each of them has the right to choose, as long as they not yet separated, and till together (in one place)” (Narrated by Al-Bukhari 4917 and Muslim number 1531 by Ibn Umar).

4.3.4 TRUST

This is the basic principle of the trade in Islãm that we should have the full trust in God no other people. Because ALLAH has full power he can do everything in everyplace at every time. ALLAH has full knowledge of all the thinks. He knows better you what you are doing, where you are doing and when you are doing. So, you are bound to have trust in God every time that and all the hopes you should have in the ALLAH. ALLAH says in the Holy Qurãn about this practice and principle of trading in Islãm. The Qurãnic verses are the following:

لتَ ۡستَ وۥاْۡۡ َع َل َٰىۡۡ ظ هو ر هۡۦۡث َّمۡتَ ۡذ ك رواْۡن ۡع َمةَۡ َرب ك ۡمۡإ ذَاۡٱ ۡستَ َوۡيت ۡمۡۡ َع َلۡي هۡ َوتَق ول واْۡ سۡب ََٰح َنۡ ٱلَّ ذيۡ َس َّخ َرۡ َلنَاۡ ََٰهذَاۡ َو َماۡ كنَّاۡ َلهۡ ۥۡ م ۡق رن ي َن١٣ۡۡ

He has enslaved for you whatever there is in the sky and whatever there is in the earth, all alone. Most likely in this there are signs for a people who reflect. (43:13)

ق ۡلۡۡأَ َغۡي َرۡٱ َّ ّللۡۡأَۡب غيۡ َرٗب اۡ َو ه َوۡ َر ُّبۡ ك لۡ َش ۡي ٖ ءۡ َو َلۡتَ ۡك س بۡ ك ُّلۡنَ ۡف ٍسۡإ َّلۡ َع َلۡي َه اۡ َو َلۡتَ ز رۡ َوا ز َر ةۡ و ۡز َرۡأ ۡخ َر َٰ ىۡث َّمۡإ َل َٰىۡ َرب كمۡ َّمۡ ۡر جع ك ۡمۡ َفي نَب ئ كمۡب َماۡ كنت ۡمۡف ي هۡ

تَ ۡختَ لف و َن١٢٤ۡۡ

Say: Should I look for a ruler other than ALLAH while He is the Lord of everything? What's more, no one does anything other than to his own particular record, and no conveyor of weight should bear the weight of

265 ______another. At that point to your Lord is your arrival. At that point He will tell you what you were debating about. (6:164)

4.3.5 JUSTICE AND HONESTY

This policy and this rule in Islãmic trade is considered very fair and practicable in the field of business. It is also supported by the Holy Qurãn: ٓ ۞ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡ كون واْۡ َق ََّٰو مي َنۡبۡ ٱۡل ق ۡس طۡۡ ش َهدَآ َءۡ َّّلل ۡ َو َل ۡوۡ َع َل َٰٓىۡأَنف س ك ۡمۡأَ وۡ ٱۡل ََٰو لدَۡي نۡۡ َوۡٱ ۡۡلَۡق َرب ي َۡنۡإ نۡيَ ك ۡنۡ َغن يًّاۡأَۡوۡ َف قي ٗراۡ َفۡٱ َّّۡلل ۡأَۡو َل َٰىۡب ه َم هاۡ َف َالۡتَتَّب ع واْۡٱۡل َه َو َٰٓىۡۡ ۡ أَنۡتَ ۡع دلۡ واْۡۡ َوإ نۡتَل وۡۥٓاْۡۡأَۡوۡت ۡع ر ضواْۡ َفإ َّنۡٱ َّّۡللَۡ َكا َنۡب َماۡتَ ۡع َمل و َنۡ َخب ي ٗرا١٣٥ۡۡ

O you who accept, be upholders of equity - witnesses for ALLAH, despite the fact that against (the enthusiasm of) your selves or the guardians, and the family. One might be rich or poor, ALLAH is better guardian of both. In this way, don't take after wants, for fear that you should swerve. On the off chance that you contort or maintain a strategic distance from (the confirmation), at that point, ALLAH is all-mindful of what you do. (4:135)

َوتَ َّم ۡتۡ ۡ َك ل َم ت ۡ َرب َك ۡ ص ۡد ٗقا ۡ َو َع ۡد ٗ ل ۡ َّل ۡ مبَ د َل ۡ ل َك ل ََٰمت هۡۦ ۡ َو ه َو ۡٱل َّس مي عۡ ۡٱۡلعَ لي مۡۡ ١١٥ۡ

The Word of your Lord is flawless in truth and equity. None is there to change His words, and He is All-Hearing, All-Knowing. (6:115)

َو َٰيَ َق ۡو مۡۡأَۡوف واْۡٱۡل م ۡكيَا َلۡۡ َوۡٱۡل مي َزا َنۡۡبۡ ٱۡل ق ۡس ه طۡۡ َو َلۡتَۡب َخ سواْۡٱلنَّا َسۡۡأَ ۡشيَآ َء ه ۡمۡ َو َلۡۡتَ ۡعثَۡواْۡ ف يۡٱ ۡۡلَ ۡر ضۡۡ م ۡف س دي َن٢٥ۡۡ

Also, O my kin, culminate the measure and the adjust with equity and don't influence the general population to shy of their things, and don't approach the earth spreading issue (11:85) ٓ ۡ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡ َلۡتَأ كل ٓواْۡأَ ۡمۡ ََٰو َل كمۡبَۡينَ كمۡبۡ ٱۡل َٰبَ ط ۡلۡإ َّ ٓلۡأَنۡتَ كو َنۡت ََٰج َرةًۡ َعنۡ تَ َرا ٖضۡ من ك ۡ مۡ َو َلۡتَۡقت ل ٓواْۡأَنف َس ك ۡ مۡإ َّنۡٱ َّّۡللَۡ َكا َنۡب ك ۡمۡ َر حي ٗما٢٣ۡۡ

266 ______O you who accept, don't eat up each other 's property by false means, unless it is exchange directed with your common assent. Try not to execute each other. In reality, ALLAH has been Very-Merciful to you. (4:29)

4.3.6 MUTUAL RESPECT

This is very good rule and principle of Islãmic trading. Because when the person and the people have mutual respect for each other the disputes and differences will be solved easily. The issues in the affair of trading including benefits and loss will not be confused the people. The society will be flourished by day and night. The Holy Prophet (P.P.U.H) says about this habit and practice:

"you won't accomplish nobility until the point that you cherish" and furthermore stated:

"GOD cherishes generosity when you manage any issue" and furthermore stated:

"You won't enter in Islãm and not have confidence until the point that you adore each other"

4.3.7 FAIR TRADE

The business in which we are should be fair and lawful. All the public dealings should be continued within the limitations of sharia. We should not allow such external activities that take our attention away from Shariah commandments. In this regard a hadith is available,

Hazrat Jabir says, “one day we were saying our prayer with the holy prophet, a caravan of trade from Egypt came and had food with them, most of the people turned their attention that side and twelve were left.”

Then on that occasion ALLAH reveal this verse. (62:11), (24:37)

َوإ ذَاۡ َرأَۡواْۡت ََٰج َرةًۡأَۡوۡ َل ۡه ًواۡٱن َف ُّض ٓواْۡۡإ َلۡي َهاۡ َوتَ َر كو َكۡ َقآئ ٗم اۡق ۡلۡۡ َماۡ عندَۡٱ َّ ّللۡۡ َخۡي رۡۡ م َنۡٱللَّ ۡه وۡۡ َو م َنۡٱلت ََٰج َر ةۡ ۡ َوۡٱ َّّۡلل ۡ َخۡي رۡٱل ََّٰر زق ي َن١١ۡۡۡ

267 ______And when they see some merchandise or amusement, they break away to it, and leave you (O prophet,) standing. Say: What is with ALLAH is much better than the amusement and the merchandise, and ALLAH is the best giver of sustenance. (62:11)

by the men whom no exchange or deal makes careless of the recognition of ALLAH, nor from setting up Salah and paying Zakah; they are frightful of a day in which the hearts and the eyes will be over-turned. (24:37)

4.3.8 LAWFUL EARNING (HALAL)

In Islãm, it is the order of ALLAH and His prophet that we should try our best to earn fair, lawful and halal food and earnings by all means not by hook or by crook, as the Holy prophet said:

“a time of such type shall come over the people when will earn their food without caring whether it is fair or not.”

ALLAH also commands in the holy Qurãn. (21:51), (2:168)

۞ َو َل َق ۡدۡ َءاتَۡينَآۡإ ۡب ََٰر هي َمۡ ر ۡشدَهۡ ۥۡ منۡ َقۡب لۡ َو كنَّاۡب هۡۦۡ ََٰع ل مي َن٥١ۡۡ

Much prior We had given Ibrahim his correct course, and We knew him well. (21:51) ٓ َٰ َٰ َٰيَأَيُّ َهاۡٱلنَّا سۡۡ كل واْۡ م َّماۡف يۡٱ ۡۡلَ ۡر ضۡۡ َح َل ٗالۡ َطي ٗباۡ َو َلۡتَتَّب ع واْۡ خ ط ََٰو تۡٱل َّشۡي َطۡ ۡنۡ إ نَّهۡ ۥۡ َل ك ۡمۡ َعد وۡ ُّمب ي ٌن١٢٢ۡۡ

O individuals, eat admissible great things out of what lies in the earth, and don't take after the strides of ShaiTan (Satan); to be sure, he is an open foe for you. (2:168)

268 ______4.3.9 MUTUAL AGREEMENT

In the system of trading of Islãm, the customer and the owner are free in their decision and dealing. So, the mutual agreement is very necessary and helpful in this process, so ALLAH says in the Qurãn: (4:29) ٓ ۡ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡ َلۡتَأ كل ٓواْۡأَ ۡم ََٰو َل كمۡبَۡينَ كمۡبۡ ٱۡل َٰۡبَ ط ۡلۡإ َّ ٓلۡأَنۡتَ كو َنۡت ََٰج َرةًۡ َعنۡ تَ َرا ٖضۡ من ك ۡ مۡ َو َلۡتَۡقت ل ٓواْۡأَنف َس ك ۡ مۡإ َّنۡٱ َّّۡللَۡ َكا َنۡب ك ۡمۡ َر حي ٗما٢٣ۡۡ

O you who accept, don't eat up each other 's property by false means, unless it is exchange directed with your shared assent. Try not to slaughter each other. In reality, ALLAH has been Very-Merciful to you. (4:29)

4.3.10 TRADE-A WAY OR CO-OPERATION AMONG THE PEOPLE

In Islãm trade is way in which the people of different countries, different areas and different towns meet to one another’s and enhance cooperation among themselves. So, it is not a process to earn food only but a process to promote mutual cooperation among the people. So, ALLAH says: (49:13) ٓ َٰيَأَيُّ َهاۡٱلنَّا سۡۡإ نَّاۡ َخ َل ۡق َٰنَ كمۡ منۡذَ َك ٖرۡ َوأ نثَ َٰىۡ َو َجعَۡل َٰنَ ك ۡمۡ شع وٗباۡ َو َقبَآئ َلۡ لتَعَا َرف ٓواْۡإ َّنۡ أَ ۡك َر َم ك ۡمۡ عندَۡٱ َّ ّللۡۡأَۡت َق َٰى ك ۡ مۡإ َّنۡٱ َّّۡللَۡ َع لي ٌمۡ َخب ي ر١٣ۡۡ

O humankind, we have made you from a male and a female, and made you into races and clans, with the goal that you may recognize each other. Without a doubt the noblest of you, in ALLAH 's locate, is the person who is most devout of you. Unquestionably ALLAH is All-Knowing, All-Aware. (49:13)

4.3.11 TO CREATE FACILITIES IN THE MATTERS

Islãm teaches us provide facilities for the people in business and trade, as the Holy prophet said,

“the best among the Muslims is that person who is lenient and open-hearted in selling and purchasing.”

269 ______4.3.12 GOOD DEMAND OF LOAN

The Islãmic jurisprudence gives us this lesson that we should create facilities for a person who is to pay your loan, as ALLAH says in the Qurãn: (2:280)

َوإ ن ۡ َكا َنۡذ و ۡ ع ۡس َر ٖة ۡفَنَ ظ َرةٌۡإ َل َٰى ۡ َمۡي َس َر ٖ ةۡ َوأَن ۡتَ َصدَّق واْۡ َخۡي ر ۡلَّ ك ۡمۡإ ن ۡ كنت ۡمۡ تَ ۡع َل مو َن٢٢١ۡۡ

On the off chance that there is one in hopelessness, at that point (the leaser ought to permit) suspension till (his) ease, and that you swear off it as contributions is greatly improved for you, on the off chance that you truly know. (2:280)

4.3.13. GOOD RETURNING OF LOAN

Islãm also teaches us that when are given options and chances of returning the loan, on being able we should not delay it, as Holy prophet said,

“the best person among you is that who do not use delaying tactics in paying the loan.”

4.3.14 TO SPEAK TRUTH IN THE DEALING

We should speak the truth in all our dealing and affairs. The Holy prophet said: “Amantdar and true trader will be with prophets, siddiqeen and martyrs.” 4.3.15 TO AVOID SWEARING

The Holy prophet has strictly emphasized on this point that we should not swear in our dealings and not our commodities. ALLAH will not like to speak to such person. There are so many A hadith in this regard.

4.3.16 TO AVOID DISHONESTY

There is a hadis-e-qudsi, in which the holy prophet says, ALLAH said:

“I am third person between two traders, but when they start dishonesty with each other, I came out of them.

270 ______4.3.17 PROHIBITION OF OLD COINS

All the unlawful and forbidden things, commodities and foods are not allowed for selling or purchasing such as wine, alcohol and boar meat etc. according to Qurãn and Hadith.

4.3.18 PROHIBITION OF HARMFUL TRADING

Such type of trade that is harmful and not profitable for the people are not allowed to adopt, such as

Bai al-mulamisa

Bai al-munabiza

4.3.19 PROHIBITION OF TRADE FOR RULERS

Allamah Ibn Khaldun, writes in “Al-muqaddamah”, when the rulers do business they use their political approaches in the public and get unfair profits at the risk of the benefits of the country and public. So, he says that they should set their business aside when they are in power and government. (Al-muqaddamah ibn Khaldun-310-312)

4.3.20 SHORTAGE IN MEASUREMENT

The Almighty ALLAH has condemned this bad practice strictly in the Holy Qurãn: (17:35), (55:09), (83:1-3) َٰ ۡ َوأَۡوف واْۡۡٱۡل َكۡي َلۡۡإ ذَاۡ كۡلت ۡمۡ َو زن واْۡبۡ ٱۡل ق ۡس َطا سۡۡٱۡل م ۡستَ قي ۡمۡذَ ل َكۡ َخۡي رۡ َوأَ ۡح َس نۡتَأ وۡي ٗالۡ ٣٥ۡ

Also, give full measure when you measure, and weigh with a straight adjust. That is reasonable, and better toward the end. (17:35)

َوأَق ي مواْۡۡٱۡل َو ۡز َنۡۡبۡ ٱۡل ق ۡس طۡۡ َو َلۡت ۡخ س رواْۡٱۡل مي َزا َن٣ۡۡۡ

Watch the right weight with decency, and don't make weighing lacking. (55:9)

271 ______َوۡي لۡۡ ل ۡل م َط ف في َن١ۡۡۡٱلَّ ذي َنۡۡإ ذَاۡٱ ۡكتَال واْۡۡ َع َلۡىۡٱلنَّا سۡۡيَ ۡستَۡوف و َن٢ۡۡۡ َوإ ذَاۡ َكال و ه ۡمۡأَوۡ َّو َزن و ه ۡمۡي ۡخ س رو َن٣ۡۡ

Hardship to the curtailers; who, when they measure a comment from individuals, take it in full; and when they measure or measure a remark it to them, give not exactly due. (83:01-3)

4.3.21 INCOME OF ONE’S HAND

It a very golden principle of Islãmic trade that the income of a man of his own hand is considered the best income than all. So, regarding this point, the following proof is sufficient,

`From Rafi ibn Khadij, he says “(to the messenger of ALLAH) O Messenger of ALLAH, what income is best? He replied, `An income from the hand of one own hand, and every righteous trading`. (narrated by ahmad, at thabrany, al halim, and classed sahih by sheikh al albani. There are so many a hadith that have the same meaning like this hadith. All the scholars are unanimous on this point that trading is a completely a lawful job. This agreement is a very necessary part of Islãmic trading or Shariah. This is also an example of this proof that when a scholar writes a book about the importance of Islãmic jurisprudence or hadith, he arranges a chapter to discuss the important issues and problems concerning trading. So, all scholars are agreed on this point that the basic and preliminary law for type of trading is ` legal and lawful, till that time or as long as it does not cross or transgress the boundary wall or the limitations of Islãmic jurisprudence and Shariah.602

`From Rafi ibn Khadij, he says "(to the flag-bearer of ALLAH) O Messenger of ALLAH, what salary is ideal? He answered, `A pay from the hand of one possess hand, and each honorable trading`. (described by ahmad, at thabrany, al halim, and classed sahih by sheik al albani. There are such a significant number of a hadith that have a similar importance like this hadith.

602 Iqbal, Zamir. "ISLMIC financial systems." Finance and Development 34, no. 2 (1997): 42.

272 ______Every one of the researchers are consistent on this point exchanging is a totally a legitimate activity. This understanding is an exceptionally fundamental piece of Islãmic exchanging or Shariah. This is likewise a case of this evidence when a researcher composes a book about the significance of Islãmic statute or hadith, he orchestrates a part to talk about the imperative issues and issues concerning exchanging. Thus, all researchers are conceded to this point the essential and preparatory law for kind of exchanging is ` lawful and legal, till that time or as long as it doesn't cross or transgress the limit divider or the impediments of Islãmic statute and Shariah.

4.3.22 SOME CAUSES THAT CHANGE THE FORM OF TRADING REGARDED AS ILLEGAL Keeping in view the main points, mentioned and discussed above, we have come to understand that the basic and major law of every trading is LEGAL. And now we shall dilate upon the causes which change the legal state of trading into illegal state. So, such causes are different unlimited in number and types.

In this connection, IMAM IBN RUSHUD AL-MALIKI says, no doubt, such causes are so many in number, but try study deeply about such reasons, you will easily be successful in finding a main summary of four causes out of all and that are following.

 The traded item or commodity is an unlawful (forbidden) goods.  The trading contains usury in it.  The trading contains unclarity (GHARAR).  The trading contains requirements that can cause usury and unclarity to be emerged. 603

There are some other important and prominent items and things that create some causes that change the legal state of trading into illegal and unlawful condition. (For further detail, you can see BIDAYATUL MUJTAHID 2/102).

603 Schembri, N., M. Hernández‐Jover, J‐A. Toribio, and P. K. Holyoake. "Feeding of prohibited substances (swill) to pigs in Australia." Australian veterinary journal 88, no. 8 (2010): 294-300.

273 ______Because of the factors and causes mentioned above need a plenty of time for their deep, comprehensive, and detailed explanation.

In addition to the causes mentioned above by IBN RUSHUD, there are Some other factors also make and create some causes that change the legal lawful form of trade to be considered as illegal, unlawful, forbidden and prohibited state of trading, those factors are called ` external factors`. Some important factors are the following: a) TIME It is forbidden and prohibited time for a Muslim for trading after the second call of the minaret for Friday prayer (second adhan), and this principle is based on verse of Qurãn and on the decree of Almighty ALLAH, the Exalted. b) FORGERY It is clear that forgery is strictly banned and forbidden in Islãm, even a single and small item of trade, because it makes the trading illegal and unlawful.

In this regard, the holy prophet says,

“the two parties to a transaction have the option (canceling it) until they part. If they are honest and disclose any effects, their transaction will be blessed, but if they lie and conceal defects, the blessing will be erased”. (MUTTAFAQUN ALAIH).

In another place, the Messenger of ALLAH says in a hadith, “whosoever fools us, is not a part of us.” (Muslim)

274 ______c) CREATING LOSS TO OTHER PEOPLE Islãm is such a religion that does not allow anyone to harm and hurt others or make losses of others, but it is the religion that wants to create benefits and facilities for others. So, the holy prophet says.

“From Abu Huraira, he said “the messenger of ALLAH said “Do not envy one another, do not raise the bargain of goods (without any intention to buy it), do not hate one another, do not plan mischief to each other, do not take over the buying of some of you, and be brothers, a Muslim is a brother of other Muslim, he does not oppress his brother, does not let him be violated by other, and does not mock him.” (MUTAFAQUN ALAYH).

So, the people create difficulties and hurdles for others and make losses of others are not considered as good and righteous people. d) HOARDING OF GOODS Hoarding of necessities of life and societies is not allowed in Islãm. The holy prophet says about this practice,

“whoever hoards are a sinner” (Muslim) e) BROKERING The holy messenger of ALLAH says about this practice,

“From Jabir ibn Abdillah, he said “The messenger of ALLAH said, the city dwellers should not sell the goods of the villagers, and let the people, some of them are given sustenance by ALLAH from the others.” (Muslim)

So, it has been cleared that this habit of brokering in trade is forbidden in Islãm. f) STEPPING OVER THE BARGAIN OR SELLING MUSLIM FELLOWS In this connection, the holy prophet says,

“Do not hinder the dwellers who bring their goods (to the market) and some of you should not step over the selling of the others, and do not raise the bargain of a thing (without any intention to buy it), and the city dwellers should not sell the goods of the villagers.” (Bukhari and Muslim)

275 ______4.3.23 WHAT IS FORBIDDEN IN Islãm? a) Prohibited things b) Uncertainty in affairs c) Hoarding of goods d) Fraud in dealings e) Illegal commodities f) Interest 4.3.24 GENERAL GUIDANCE FOR A Muslim TO ADOPT THE FOLLOWING PRINCIPLES a) Love god and his commands more than your trade or business b) Be honest and trusthfull c) Keep ones words d) Be humbles in how you conduct your life e) Do not deal in fraud f) Do not bride g) Deal justly h) Deal farely i) Do not tell a lie j) Do not steal k) Do not disrespect of others 604

Now keeping in view, the discussion mentioned above, one should be very careful about commandments and prohibitions of ALLAH and His prophet in the field of trading. We should give up bad practices and adopt good habits of trading, so that we may be considered as a good, pious, well-wisher and righteous in the good book of ALLAH and His prophet and also in society in the world of trade.

4.4 ISLÃMIC MODES OF FINANCING/ ISLÃMIC BANKING/ SHARIAH-COMPLIANT FINANCE

Islãmic banking is such type of activity concerning the banking or financing that complies with Shariah (Islãmic Law) and practical action and application is observed with the speed of development of Islãmic economics. There are

604 Gait, Alsadek H., and Andrew C. Worthington. "A primer on ISLMIC finance: Definitions, sources, principles and methods." (2007).

276 ______some important modes of Islãmic Banking/Islãmic Finance605 that are the following: a) MUDÃRABAH Profit and Loss 606 b) WADIAH Safekeeping607 c) MUSHARAKA Joint Venture608 d) MURÃBAHAH Cost Plus609 e) IJÃRAH Leasing610

We have learnt many information from the Holy Qurãn and A Hadith that Shariah dislikes RIBÃ or usury which means an increase in the shape of interest that is paid on all types of lone or money. It is also discussed in the different people that some Muslims have some differences on this point that the interest is equivalent or equal to RIBÃ. It is another order or commandment of Shariah all the goods and services that are prohibited just like pork or alcohol is also considered HARAM611 (Sinful and Prohibited) on

605 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005. 606 ABDUL RAHMAN, Abdul Rahim. "< ISLMIC Economics: Theoretical and Practical Perspectives in a Global Context> ISLMIC Microfinance: A Missing Component in ISLMIC Banking." (2007). 607 Chong, Beng Soon, and Ming-Hua Liu. "ISLMIC banking: interest-free or interest-based?" Pacific-Basin Finance Journal 17, no. 1 (2009): 125-144. 608 Samad, Abdus, Norman D. Gardner, and Bradley J. Cook. "ISLMIC banking and finance in theory and practice: The experience of Malaysia and Bahrain." The American Journal of ISLMIC Social Sciences 22, no. 2 (2005): 69-86. 609 Hasan, Maher Mohamad, and Jemma Dridi. "The effects of the global crisis on ISLMIC and conventional banks: A comparative study." (2010). 610 Amin, Muslim, and Zaidi Isa. "An examination of the relationship between service quality perception and customer satisfaction: A SEM approach towards Malaysian ISLMIC banking." International Journal of ISLMIC and Middle Eastern Finance and Management 1, no. 3 (2008): 191-209. 611 Maali, Bassam, Peter Casson, and Christopher Napier. "Social reporting by ISLMIC banks." Abacus 42, no. 2 (2006): 266-289.

277 ______the ground of Business. These orders have been applied historically in the different degrees in different Muslim countries or communities to stop or prevent such like un-Islãmic612 odes or practices. In the late time of 20th century the movement of such like namely the revival of Islãmic identity,613 so many numbers of Islãmic banks came into existence to apply and implement these principles and methods to private and semi-private in the premises of Muslim community614 and commercial institutions.615 With the passage of time very quickly the number these banks grown up to the number of 300 hundred banks and 250 mutual funds616 all over the world by the year of 2009, all such banks and mutual funds strictly comply and act upon the Islãmic modes and principles.617 Such like institutions which are obey Islãmic principle they represented almost 1% of total assets of the world. Such like institutions quickly concentrated in the area of Gulf Co- operation Council (GCC) countries including Iran and Malaysia. Although these types of Islãmic banking playing a very important role implementing the Islãmic principles in the Islãmic country, but also the inception of such institutions and principles are growing very and faster as compare to banking assets on the wholes. These banks have many projects to project the sketch of their program for the people to continue their plan to do so and to do more.

In addition to the Islãmic banks have also being playing a very important role to come back to the path of (Divine Guidance) and rejected the dominance and power of politics and economics of the West. Even though such Islãmic institutions are working wonders in the field of business based on Islãmic principles but it has been criticized strictly for its

612 El-Gamal, Mahmoud Amin. A basic guide to contemporary ISLMIC banking and finance. Vol. 1. Houston, TX: Rice University, 2000. 613 Mahmood, Saba. Politics of piety: The ISLMIC revival and the feminist subject. Princeton University Press, 2011. 614 Qureshi, Ishtiaq Husain. The Muslim community of the Indo-Pakistan subcontinent, 610-1947: a brief historical analysis. Maʻaref, 1977. 615 Bearce, David H., and Sawa Omori. "How do commercial institutions promote peace?" Journal of Peace Research 42, no. 6 (2005): 659-678. 616 Treynor, Jack, and Kay Mazuy. "Can mutual funds outguess the market." Harvard business review 44, no. 4 (1966): 131-136. 617 Sundararajan, Vasudevan, and Luca Errico. ISLMIC financial institutions and products in the global financial system: Key issues in risk management and challenges ahead. Vol. 2. International Monetary Fund, 2002.

278 ______failing to develop and promote of profit and loss sharing are some others modes of ethics in the field of investment that has been promised by the promoters of early time. These banks in spite of selling the products of banking and they only fulfill the formal requirements of Islãmic law and they use some such types of methods that are not helpful and useful for the people only to conceal the interest and they have to pay higher costs in different field of business and face bigger risks as compared to conventional (RIBÃwi) banks.

4.4.1 USURY IN ISLÃM

It has been discussed in detail in Section no. 4.2.

4.4.2 HISTORY OF ISLMAIC BANKING a) SINCE 1970

The involvement and entrance of institutions, governments and various and different conferences and studies and research for Islãmic banking and finance ministers of the Islãmic countries held a conference in Karachi in 1970. The Egyptian study has been started in 1972. Similarly, the first International Conference on Islãmic Economics618 was held in Makkah in 1976 and International Economic Conference was held in London in 1977. All these Conferences and seminars are such types of tools and instruments for applying and implementing of the application and action of such theory to practice and to promote such grounds for the Muslims in the shape or shade of first interest-free Banks. The First International Conference on Islãmic Banking is a such type of conference in which several hundred Muslim thinkers, intellectuals, Shariah Scholars and Economists participated and declared in one vice and unequivocally that all forms and types of interests were called (RIBÃ).619

618 Ginsburgh, Victor A., ed. Economics of Art and Culture Invited Papers at the 12th International Conference of the Association of Cultural Economics International. Emerald Group Publishing Limited, 2003. 619 Hornik, Kurt, Maxwell Stinchcombe, and Halbert White. "Universal approximation of an unknown mapping and its derivatives using multilayer feedforward networks." Neural networks 3, no. 5 (1990): 551-560.

279 ______By the year of 2004 the number of the people of this belief which is based on Islãmic finance was declared and demonstrated in all over the world, the second largest and biggest Muslim country-Pakistan. It is fact that the minority (Non-Muslims) who are the member of Pakistani Parliament raised a question and pointed out this thought a scholar from the University of Al- Azher,620 it is the oldest Islãmic university in the world, has issued an order or decree that the bank interest was not considered un-Islãmic. This statement from the scholar showed its result in the position of “PANDEMONIUM”621 on the floor of Parliament. All the members of the Parliament demanded to explain this derogatory statement and they walked out from the Parliament and denied it to accept. When the members of Parliament return to their leader (Sahib Zada Fazal Karim) he explained that since the creation of Pakistan, council of Islãmic ideology had also declared unanimously that the interest of all types and forms was HARAM (Forbidden) in all the Islãmic societies, after this statement no member of the Parliament house had the right and the opinion to refuse and negate this statement about the hot issue. 622

After the decree issued by the council created many questions for the minority of the Islãmic scholars such as Muhammad Abduh, Rashid Rida, Mehmood Shaltut, Syed Ahmad Khan, Fazal Al-Rehman, Muhammad Syyid Tantawy and Yusuf Al-Qaradawi, they raised questions whether the type of RIBÃ includes all interest payments. Like this others scholar specially Muhammad Akran Khan also put a question whether the RIBÃ is a type of crime like murder or like theft that is forbidden and prohibited by Shariah (Islãmic Law) are only and simply it is a sin. He also asked this question that

620 Eccel, A. Chris. Egypt, Islam, and Social Change: Al-Azhar in Conflict and Accommodation. Vol. 81. K. Schwarz, 1984. 621 Selfridge, Oliver G. "Pandemonium: a paradigm for learning in mechanisation of thought processes." (1958): 513-526. 622 Naidu, Ereshnee, Sadiyya Haffejee, Lisa Vetten, and Samantha Hargreaves. "On the margins: Violence against women with disabilities." Retrieved from the Centre for the Study of Violence and Reconciliation website: http://www. iiav. nl/epublications/2005/On_the_Margins. pdf (2005).

280 ______the neither the profit nor the first for Caliph nor any subsequent Islãmic government ever made or enacted against any type of law.623 b) ISLÃMIC BANKING

According to Muhammad Naveed who is a great revivalist, he says the practice of Islãmic banking as old as the religion itself very old. And all the primary principles of Islãmic banking also derived from the Holy Qurãn they are also very old, secular historians and all the Islãmic modernist say and think it is a modern phenomenon are they called it “invented tradition”. 624 c) THE EARLY BANKING

According to the opinion of Timur Kuran by the time 10th century all the Islãmic laws started to support credit and all types of investments in the form of instruments that were also very advanced in the non-Islãmic world.625 But before the 19th century there were no mention of any durable and financial institutions and popular banks in the Muslim world. And it is fact till the 1920’s no Muslim bank626 came on the scene.

In the position of early market economy and in the position of mercantilism.627 And these institutions are sometime called Islãmic Capitalism628 and such types of institutions were developed between the 8th and 12th centuries. The economy of that time was based specially on the circulated currency such as Gold and Dinar etc. and in this way the different regions and areas of the country joined together who were economically strong and independent.629

623 Dar, Humayon A., and John R. Presley. "Lack of profit loss sharing in ISLMIC banking: management and control imbalances." International journal of ISLMIC financial services 2, no. 2 (2000): 3-18. 624 Hobsbawm, Eric. "The nation as invented tradition." Nationalism (1994): 76-82. 625 Crone, Patricia, and Michael Cook. Hagarism: The making of the ISLMIC world. CUP Archive, 1977. 626 Iqbal, Munawar, and Philip Molyneux. Thirty years of ISLMIC banking: History, performance and prospects. Springer, 2016. 627 Heckscher, Eli F. Mercantilism. Routledge, 2013. 628 Çizakça, Murat. ISLMIC capitalism and finance: Origins, evolution and the future. Edward Elgar Publishing, 2011. 629 Zaher, Tarek S., and M. Kabir Hassan. "A comparative literature survey of ISLMIC finance and banking." Financial Markets, Institutions & Instruments10, no. 4 (2001): 155-199.

281 ______Similarly, a number of concepts and techniques630 about economics were used to apply in the Islãmic banking in early time that all such types of banks included bills of exchange,631 partnership (Mufawada, it included `limited partnerships are Mudaraba).632 All the forms and types of capital (Al-Mal) capital accumulation (Nama Al-mal), cheques, promissory notes,633 trusts (Waqf), 634Transactional accounts,635 Ledgers,636 loaning and assignments.637 In those days, all the Muslim traders are known to start to use the cheque or sakk system638 since the 9th century of the Abbasid Caliphate.639 In addition to these organizations some important and famous organizational enterprises640 came into existence independently from the state in the time of medieval Islãmic world. Similarly, the agency of the institution641 was also coming to known during that time. Many concepts of the capitalist of that time were adopted and taken and for the next time further

630 Debreu, Gerard. "New concepts and techniques for equilibrium analysis." International Economic Review 3, no. 3 (1962): 257-273. 631 Munro, John H. Bullionism and the Bill of Exchange in England, 1272–1663: A Study in Monetary Management and Popular Prejudice. na, 1979. 632 Sadique, Muhammad Abdurrahman. "THE CONCEPT OF COMPLETE EQUALITY IN MUFAWADAH PARTNERSHIP: ITS RECOGNITION AND RATIONALE IN ISLMIC LAW." 633 Cone, Edward T. "Schubert's Promissory Note: An Exercise in Musical Hermeneutics." Nineteenth-Century Music (1982): 233-241. 634 Petry, Carl F. "A Geniza for Mamluk Studies? Charitable Trust (Waqf) Documents as a Source for Economic and Social History." Mamluk Studies Review 2 (1998): 51-60. 635 Medlin, Jennifer, Jim Reed, and Jerome Myers. "Methods and systems for providing dynamic feedback to customers using transactional accounts for purchases." U.S. Patent Application 11/460,622, filed July 27, 2006. 636 Pogue, Gerald A., Russell B. Faucett, and Ralph N. Bussard. "Cash management: A systems approach." (1969). 637 Das, Sajal K., Sanjoy K. Sen, and Rajeev Jayaram. "A dynamic load balancing strategy for channel assignment using selective borrowing in cellular mobile environment." Wireless Networks 3, no. 5 (1997): 333-347. 638 Tesfaye, Aksumite. "The legal and practical problems surrounding the dishonoring of cheque due to insufficient fund." PhD diss., ST. MARY’S UNIVERSITY, 2008. 639 Le Strange, Guy. Baghdad during the Abbasid Caliphate: from contemporary Arabic and Persian sources. Clarendon Press, 1900. 640 Hartley, Jean, Eva Sørensen, and Jacob Torfing. "Collaborative innovation: A viable alternative to market competition and organizational entrepreneurship." Public Administration Review 73, no. 6 (2013): 821-830. 641 Battilana, Julie. "Agency and institutions: The enabling role of individuals’ social position." Organization 13, no. 5 (2006): 653-676.

282 ______advanced in the time of medieval Europe642 from the time 13th century and onward. 643 d) THE 20th CENTURY

In the time of the middle of the 20th century some important organizational entities644 came on the scene they offered their financial services645 with the characteristics of complying the rules of Islãmic laws. In this connection the first, experimental and local Islãmic bank646 was established on the basis of Islãmic laws in the late time of 1950’s in the rural area of Pakistan and the policy of this bank was not to take interest on all its loans.647

In 1963 the first Islãmic Bank648 was established and came on the scene in rural Egypt whose owner was Ahmad al-Naggar who was the great Economist. This help those people who had no confidence to take loan from the state-run banks.649 Similarly, the experiment of profit sharing in the town of Nile Delta of Mit Ghamr, but the difference was, this branch did not express and advertise the nature of Islãmic rules having the fear of being fundamentalist650 from the Regime. Similarly, in those days the Pilgrims

642 Flint, Valerie IJ. The rise of magic in early medieval Europe. Clarendon, 1991. 643 Khan, Feisal. "How ‘ISLMIC’is ISLMIC banking?" Journal of Economic Behavior & Organization 76, no. 3 (2010): 805-820. 644 Salvato, Carlo, and Claus Rerup. "Beyond collective entities: Multilevel research on organizational routines and capabilities." Journal of Management 37, no. 2 (2011): 468-490. 645 Berger, Allen N., Rebecca S. Demsetz, and Philip E. Strahan. "The consolidation of the financial services industry: Causes, consequences, and implications for the future." Journal of4 (1990): 25-35.Banking & Finance 23, no. 2 (1999): 135-194. 646 Erol, Cengiz, Erdener Kaynak, and El-Bdour Radi. "Conventional and ISLMIC banks: patronage behaviour of Jordanian customers." International Journal of Bank Marketing 8, no. 4 (1990): 25-35. 647 Ahmad, Ashfaq, Iqbal Saif, and Nadeem Safwan. "An empirical investigation of ISLMIC banking in Pakistan based on perception of service quality." African journal of business management 4, no. 6 (2010): 1185. 648 Henry, Clement M., and Rodney Wilson, eds. The politics of ISLMIC finance. Edinburgh: Edinburgh University Press, 2004. 649 Molyneux, Philip, and John Thornton. "Determinants of European bank profitability: A note." Journal of banking & Finance 16, no. 6 (1992): 1173-1178. 650 Zeidan, David. "The Copts—equal, protected or persecuted? The impact of Islamization on Muslim‐Christian relations in modern Egypt." Islam and Christian‐ Muslim Relations 10, no. 1 (1999): 53-67.

283 ______Saving Co-operation651 was established in Malaysia even though it was not a bank but it started to in cooperate the basic and preliminary concepts of Islãmic banking.

In 1968 by bad luck the Egyptian Government shut down and blocked the bank of Mit Ghamr. All the people know in the history of the world that it was successfully doing work having 9 similar banks branches in the country. But after a sometime in 1972 the Mit Ghamr Saving projects652 again dominated and became the part of Nasar Social Bank653 and this bank was of 2016 till this time it in the business in Egypt.654

In 1975 the Islãmic development bank655 was established with full mission to provide all types of funding for the projects in the countries of neighbors. Similarly, the first modern commercial Islãmic bank656 and Dubai Islãmic bank657 was came into existence in 1979. In addition to this the first Islãmic insurances company (Takaful)658 and Islãmic insurance company of Sudan came into the scene in 1979. In the next time, the Amana income fund659 and worlds first Islãmic mutual fund660 that bound to obey and comply the Islãmic

651 Hegazy, Walid S. "Contemporary ISLMIC finance: From socioeconomic idealism to pure legalism." Chi. J. Int'l L. 7 (2006): 581. 652 Ready, R. K. "Interest-free Banks and Social Change: A Study of the Town of Mit Ghamr, the Village of Dondait and the Mit Ghamr Savings Bank Project (Interest-Free Local Banks)." Unpublished manuscript (1967). 653 Henry, Clement M., and Rodney Wilson, eds. The politics of ISLMIC finance. Edinburgh: Edinburgh University Press, 2004. 654 Mayer, Ann Elizabeth. "ISLMIC banking and credit policies in the Sadat era: the social origins of ISLMIC banking in Egypt." Arab Law Quarterly (1985): 32-50. 655 Turner, Barry. "ISLMIC Development Bank." The Statesman’s Yearbook: The Politics, Cultures and Economies of the World 2009 (2008): 52-52. 656 Haron, Sudin, Norafifah Ahmad, and Sandra L. Planisek. "Bank patronage factors of Muslim and non-Muslim customers." International Journal of Bank Marketing 12, no. 1 (1994): 32-40. 657 Iqbal, Munawar, and Philip Molyneux. Thirty years of ISLMIC banking: History, performance and prospects. Springer, 2016. 658 Maysami, Ramin Cooper, and W. Jean Kwon. "An analysis of ISLMIC Takaful insurance: A cooperative insurance mechanism." Journal of Insurance Regulation 18, no. 1 (1999): 109. 659 Mueller, Samuel A. "Investment returns on an ISLMIC-principled mutual fund in the United States: further evidence for the cost-of-discipleship hypothesis." Sociology of Religion 55, no. 1 (1994): 85-87. 660 Ashraf, Dawood. "Performance evaluation of ISLMIC mutual funds relative to conventional funds: Empirical evidence from Saudi Arabia." International Journal of ISLMIC and Middle Eastern Finance and Management 6, no. 2 (2013): 105- 121.

284 ______rules was came into being in 1986 in Indiana.661 From 1980-85 Islãmic investment662 throughout the Muslim world started their work to invest on the large scale and gain great profit with the religious guarantees663 receiving the Fatwas664 from the Islãmic Jurists665 for the denouncing 666of conventional banks and for the recommendation of their Islãmic rivals. All of a sudden, the growth of such type of investment organizations reversed and went down in 1988 in the Arab Muslim countries and specially in Egypt. But in spite of this the government started on supporting secretly for the establishment of the industry and lunched a media campaign against the Islãmic banks. 667

In 1990 a kind of Islãmic financial institution (Accounting and Auditing)668 organization for Islãmic financial institutions was established on the strong basis in Algiers headed by group of Islãmic bank institutions. At that time first time Islãmic bond market669 appeared in the market for the transaction of

661 Leech, Geoffrey N. "Towards a Semantic Description of English. Indiana Studies in the History and Theory of Linguistics." (1970). 662 Sullivan, Denis Joseph. Private voluntary organizations in Egypt: ISLMIC development, priPuls, Joshua. "The Wall of Separation: Section 116, the First Amendment and Constitutional Religious Guarantees’ (1998)." Federal Law Review 26: 139.vate initiative, and state control. University Press of Florida, 1994. 663 Pulls, Joshua. "The Wall of Separation: Section 116, the First Amendment and Constitutional Religious Guarantees’ (1998)." Federal Law Review 26: 139. 664 Riyadh, Salamat. "FINANCIAL REENGINEERING FORWARD TRANSACTIONS INTO ISLMIC FORWARD TO INCRASE THE ROLE OF ISLMIC BANKING IN INDONESIA IN THE GLOBAL MARKET." International Journal 3, no. 12 (2015): 1070-1076. 665 Alobar, Mohammed. "Organ transplantation: a Sunni ISLMIC perspective." Saudi Journal of Kidney Diseases and Transplantation 23, no. 4 (2012): 817. 666 Sheng, Andrew, and Ajith Singh. ISLMIC finance revisited: conceptual and analytical issues from the perspective of conventional economics. World Bank Publications, 2013. 667 Sullivan, Denis Joseph. Private voluntary organizations in Egypt: ISLMIC development, private initiative, and state control. University Press of Florida, 1994. 668 Ibrahim, Nacre, and Robert Scapings. "Accounting and financial control in a socialist enterprise: a case study from Algeria." Accounting, Auditing & Accountability Journal 2, no. 2 (1989). 669 Jobst, Andreas, Peter Kunze, Paul Mills, and Amado See. "ISLMIC bond issuance: what sovereign debt managers need to know." International Journal of ISLMIC and Middle Eastern Finance and Management 1, no. 4 (2008): 330-344.

285 ______trade able sukuk. They issued such types of bond Shell MDS in Malaysia.670 In 2002 the Islãmic financial services board came into existence in the form of international standard-setting or Islãmic financial institutions. 671

When the industry grew on the ground but it had criticism from M.T. Usmani on account of making progress from “Debt base contracts”672 such as Murabaha towards the genuine reality in the form of profit and loss sharing mode.673 In spite of doing work on the opposite side it started competing to present and provide all the same characteristics of the side of conventional type (Interest-Bases Market Place). In the year of 2015, 2.004 U. S Dollar trillion in the forms of assets were managed for the purpose in the same way which complied the Shariah rules according to the statement of global Islãmic economy report674. All the types of 342 U. S Dollar billion were present in the shape or in the kind of sukuk. Because of this progress and growth, the market was made up to the extent of 2354 sukuk at that time and had become strong and bigger to the great extent for the several non- Muslims majority states such as U.K, Hong Kong and Luxemburg.675

670 Ahmad, Wahid, and Raffish Mat Razi. "Sustainability of sukuk and conventional bond during financial crisis: Malaysia’s capital market." Global Economy and Finance Journal 4, no. 2 (2011): 33-45. 671 Sundararajan, Vasudevan, and Luca Errico. ISLMIC financial institutions and products in the global financial system: Key issues in risk management and challenges ahead. Vol. 2. International Monetary Fund, 2002. 672 Press, Eric G., and Joseph B. Winthrop. "Accounting-based constraints in public and private debt agreements: Their association with leverage and impact on accounting choice." Journal of accounting and economics 12, no. 1-3 (1990): 65-95. 673 El Orchid, Mohammed. "ISLMIC finance gears up." Finance and Development 42, no. 4 (2005): 46. 674 Warded, Ibrahim. ISLMIC finance in the global economy. Edinburgh University Press, 2000. 675 Stearns, Peter N. Consumerism in world history: The global transformation of desire. Routledge, 2006.

286 ______4.4.3 PRINCIPLES OF ISLÃMIC LAW ABOUT BANKING

Following are basic principles and laws of Islãmic banking to be consistent with Shariah.676 This is also called the interpretation of the orthodox.677 All the guidance is provided by Islãmic Economics.678 That is why the contemporary organization679 and movement of the Islãmic banking and finance imposes bans and prohibitions on such activities which are not according to Islãm in the field of business, although some of them are legal in secular and western states. 680Some important principles of them are the following.

Receiving or paying charges on interest, all kinds of RIBÃ are strictly prohibited. Islãmic laws have also prevented the use of interest in all transactions which are known as FIQH- al –Muamlat.681

Investment in forbidden (haraam) items such as alcohol and pork etc.

Charging or receiving extra money on late or delaying payment. This type of transaction implies and applies to MURÃBAHAH transactions in Islãm.682 a) MAISIR: The general translation of this word is usually considered as `Gambling`. It depends upon the occurrence of some good or bad events of a

676 Lombardi, Clark B. "ISLMIC law as a source of constitutional law in Egypt: The constitutionalizing of the Sharia in a modern Arab state." Colum. J. Transnet’s L. 37 (1998): 81. 677 Breck, John. Scripture in Tradition: the Bible and its Interpretation in the Orthodox Church. St Vladimir's Seminary Press, 2001. 678 Mannan, Muhammad Abdul. ISLMIC economics: foundations of ISLMIC economics: theory and practice. Hodder and Stoughton, 1986. 679 Quatro, Scott A. "New age or age old: Classical management theory and traditional organized religion as underpinnings of the contemporary organizational spirituality movement." Human Resource Development Review 3, no. 3 (2004): 228-249. 680 Champion, Duane Edwin. "Holocene geomagnetic secular variation in the western United States: Implications for the global geomagnetic field." PhD diss., California Institute of Technology, 1980. 681 Hasan, Azman Bin, and A. I. K. O. Laws. "Optimal Shariah governance in ISLMIC finance." ISLMIC Finance News 4, no. 14 (2007): 7. 682 Hosen, Muhamad Nadratuzzaman, and Amirah Ahmad Nahrawi. "Comparative analysis of ISLMIC banking products between Malaysia and Indonesia." International Journal of Academic Research in Economics and Management Sciences 1, no. 2 (2012): 120.

287 ______predetermined, most uncertain and illogical events in time of future and these events are called Maisir and is strictly prohibited in Islãmic finance.683 b) GHARAR

GHARAR is generally usually meant and translated as `uncertainty ` or `ambiguity`. All types of such dealings and transactions that depend on such an uncertain situation are forbidden in Islãmic finance.684 c) ENGAGING IN DEALINGS WITH LACKING (MATERIAL FINALITY). In this type, all dealings are linked to real center of Islãmic finance and all other derivatives and all options are thrown out.

Money is the most important kind of Islãmic financing.685 d) DEBT-BASED CONTRACT ARE MADE ON THE BASIS OF TANGIBLE ASSET.

All type of transactions that are made in the sense of debt-based contracts are often palpable, perceptible and touchable.686 e) RIGHT TO SELL It is also a merit of Islãmic banking that it gives the right to its customer to sell his assets freely without any hurdle and hesitation.687 f) MONEY FROM MONEY- IT IS NOT ALLOWED IN ISLÃMIC BANKING

683 Khan, Mubbsher Munawar, Hassan Mobeen Alam, Naveed Ahmad, Muhammad Sabeeh Iqbal, and Salmat Ali. "Comparative analysis of ISLMIC and prevailing insurance practices." International Journal of Business and Social Science 2, no. 10 (2011). 684 Saleh, Nabil A., and Ahmad Ajaj. Unlawful gain and legitimate profit in ISLMIC Law: Riba, Gharar, and ISLMIC banking. Graham & Trotman, 1986. 685 Gait, Alsadek, and Andrew Worthington. "An empirical survey of individual consumer, business firm and financial institution attitudes towards ISLMIC methods of finance." International Journal of Social Economics 35, no. 11 (2008): 783-808. 686 Leonard-Barton, Dorothy. "Wellsprings of knowledge: Building and sustaining the sources of innovation." (1995). 687 Hassan, Kabir, and Mervyn Lewis, eds. Handbook of ISLMIC banking. Edward Elgar Publishing, 2009.

288 ______Earn money from money but the rule is to get money from assets.688 g) MONEY HAS NO INTRINSIC UTILITY It is admitted fact that money has no natural or essential value in this system.689 h) MONEY – A MEDIUM OF EXCHANGE Money is considered a means and process of exchange.690 i) ISLÃMIC BANK COLLECTS THE ZAKAT FROM THE ACCOUNTS OF ITS CUSTOMERS Islãmic bank collects the zakat from the accounts of its customers and spend such social welfare works.691 j) AN ACTIVE BOARD SHARIAH EXPERTS A board whose members are experts in Islãmic rules, is working actively to watch the activities of the banks.692 k) STRICT SUPERVISION ON THE ACTIVITIES This board has the strict surveillance on the dealings and affairs of the banks. 693 l) GUIDANCE FOR ALL BANKS This board provides the proper guidance to all the banks.694

688 Cihák, Mr Martin, and Heiko Hesse. ISLMIC banks and financial stability: An empirical analysis. No. 8-16. International Monetary Fund, 2008. 689 Moore, George Edward. "The conception of intrinsic value." (1998). 690 Kiyotaki, Nobuhiro, and Randall Wright. "On money as a medium of exchange." Journal of Political economy 97, no. 4 (1989): 927-954. 691 Hassan, M. Kabir. "An integrated poverty alleviation model combining zakat, awqaf and micro-finance." In Seventh International Conference–The Tawhidic Epistemology: Zakat and Waqf Economy, Bangi, Malaysia, pp. 261-281. 2010. 692 Hamza, Hichem. "Sharia governance in ISLMIC banks: effectiveness and supervision model." International Journal of ISLMIC and Middle Eastern Finance and Management 6, no. 3 (2013): 226-237. 693 Grais, Wafik, and Matteo Pellegrini. Corporate governance in institutions offering ISLMIC financial services: issues and options. Vol. 4052. World Bank Publications, 2006. 694 Shahzad Bukhari, Khuram, Hayat M. Awan, and Faareha Ahmed. "An evaluation of corporate governance practices of ISLMIC banks versus ISLMIC bank windows of conventional banks: A case of Pakistan." Management Research Review 36, no. 4 (2013): 400-416.

289 ______m) RISK SHARING POLICY. This policy is introduced in this system. 695 n) SAME-PURPOSE POLICY AS OTHER CONVENTIONAL BANK. Purpose policy for the benefits of customers are same as of other banks.696 o) RULES AND LAWS ARE DIFFERENT. Rules and laws are different than conventional banks.697 p) SOME IMPORTANT CHARACTERISTICS OF ISLÃMIC BANK  It promotes risk-sharing policy.  It provides for Islãmic finance.  It enhances social harmony.  It has justice, fairness, equality and transparency in its policy.698 4.4.4 CRITICISM AND OBJECTION Feisal khan, a critic, argues and says Islãmic finance is not doing its works according to its standards mentioned in its plan and characteristics. He says that the term `risk – sharing ` is lacking from the scene because the other term `profit and loss sharing` is used frequently in many deals. And similarly, underlying transactions of material are also losing their importance in presence of such other transactions such as `tawarruq`, MURÃBAHAH, and Islãmic short-sales. He opines that Islãmic banks are only using alternate names and practically they are mimicking conventional banking in most of the dealings. He also gives this argument that HARAM activities are not stopped in many transactions.699

695 Monacelli, Tommaso, and Roberto Perotti. "Fiscal policy, the trade balance and the real exchange rate: Implications for international risk sharing." manuscript, IGIER, Universita Bocconi 6 (2006): 1-57. 696 Hassan, M. Kabir, and Abdel-Hameed M. Bashir. "Determinants of ISLMIC banking profitability." In 10th ERF annual conference, Morocco, pp. 16-18. 2003. 697 Imam, Patrick A., and Kangni Kpodar. ISLMIC banking: how has it diffused? No. 10-195. International Monetary Fund, 2010. 698 Hassan, M. Kabir, and Abdel-Hameed M. Bashir. "Determinants of ISLMIC banking profitability." In 10th ERF annual conference, Morocco, pp. 16-18. 2003. 699 Dar, Humayon A., and John R. Presley. "Lack of profit loss sharing in ISLMIC banking: management and control imbalances." International journal of ISLMIC financial services 2, no. 2 (2000): 3-18.

290 ______4.4.5 SCRIPTURAL BASIS In the Islãmic history of Islãm there are strong and comprehensive Islãmic laws that is called Shariah. These Islãmic rules and laws formulate the basis of Islãmic banking and Shariah is itself has its basis on the Holy Qurãn which revealed to the Islãmic profit Hazrat Muhammad (P.B.U.H) and A hadith (the body and combinations reports of the teachings, all deeds and all saying of the Holy Prophet Hazrat Muhammad (P.B.U.H) that explain the definition of the verses in the Qurãn). In the light of A hadith, the type of trade GHARAR is forbidden strictly. This GHARAR is just like selling and buying the thinks such as “the birds flying on the sky or the fish living in the water”. Similarly, the type of trade Maisir I also forbidden by the commandment of ALLAH in the light of verses of the Holy Qurãn 2:219, 5:90 and 91 in the Holy Qurãn.700

No doubt, “the Islãmic Evolution”701 of all the modern banking unanimously are on the one page about the definition of all types of trusts on lone considering is at RIBÃ. In the Holy Qurãn, there are 12 verses revealed from the ALLAH to his Prophet forbidding and prohibiting the trade of RIBÃ strictly. All these 12 verses are the following:

These verses and A hadith and the explanation has been discussed in detail in section no 4.2.

4.4.6 INTEREST AND CREDIT SALES The pioneers of Islãmic banking such as Taki Usmani and others say the credit fails is appreciated in the system of Islãmic banking and it is synonyms to MURÃBAHAH which is the limited and small part of Islãmic Banking industry and also considered as subordinate to profit and loss sharing and it is called “Most Common Mode and Method of Islãmic Banking”. No doubt the critics has objections such as Khalid Zaheer and Muhammad Akram Khan, they criticize the difference between interest and credit fails. Khalid

700 Çizakça, Murat. A comparative evolution of business partnerships: the ISLMIC world and Europe, with specific reference to the Ottoman Archives. Vol. 8. Brill, 1996. 701 Çizakça, Murat. A comparative evolution of business partnerships: the ISLMIC world and Europe, with specific reference to the Ottoman Archives. Vol. 8. Brill, 1996.

291 ______Zaheer says the profit that we receive from the credit sales is called RIBÃ, it is the same type of interest. He also criticizes the Council of Islãmic Ideology to pay their attention to this problem about which they say that the credit fails- based Islãmic banking is the second-best solution for the business of trade in Islãmic system. Muhammad Akram khan also says some points that this system and this term is just like an interest or RIBÃ. Mufti Taki Usmani says that all the arguments explained or expressed by the critics is only the “misconception” because to pay some more money for credit while buying a product (An exchange of some commodities for some money) it does not disobey and violate the Shariah law, but on the other hand by the exchange of “one unit of some money for another of the same kind of denomination” (An exchange of some for some money). Similarly, the over charge for a credit is really the violation and against of Shariah law. He also says the type of cash lone is a different think because “money keeps no utility of intrinsic type” (Intrinsic utility). In addition to these scholars some other orthodox writers and supporters such Kahf have also spoken something in favors of Shariah compliance of the practice. They give some arguments that commodities that are used in finance are not called interest or RIBÃ, because it is used for speculative purposes. Some critics have also given arguments against the MURÃBAHAH and they say all types of types trading in the form of MURÃBAHAH is called interest completely but name is not so and Murabaha means lone with interests.702

4.4.7 TYPES OF Islãmic LENDING  Muhammad Najatullah Siddiqui is one of the pioneers of Islãmic banking. He says MUDÃRABAH is the basis of Islãmic banking. It provides RIBÃ-free banking.  Mufti Taqi Usmani is another pioneer of this field, he says Musharkah is the real and attractive tool of Islãmic banking. It the profit-sharing form. He says Murabaha, ijaara, SALAM and ISTISNÃ are also basic instruments of Islãmic banking.703

702 Schwartz, Robert A. "An economic model of trade credit." Journal of financial and quantitative analysis 9, no. 4 (1974): 643-657. 703 Khan, Mohsin S. "ISLMIC interest-free banking: a theoretical analysis." Staff Papers 33, no. 1 (1986): 1-27.

292 ______4.4.8 TIME VALUE OF MONEY This policy is introduced the system of Islãmic banking. And the value of money according to time is taught in it. The meaning of `gratification and desertification` is discussed in detail according to the Islãmic laws. 704

4.4.9 EARLY PAYENT OF DEBT This is the opposite policy of the `credit sales (i.e. the opposite and against of the charging more money in exchange of providing the buyer extra time to pay) is reduced and minimized charges due to early time. And it is considered and thought `Haraam` according to four Sunni schools of thought and jurisprudence (Hanafi, Maliki, Shafii, Hanbali). All the jurists are not agreed on this point such as Ridha Saadullah says that companions of the prophet considered it not HARAM. Ibn taymiyya, and Ibn Al-Qayyim are also of this opinion. The Islãmic FIQH Academy of OIC has also this opinion. This situation will be continued between the debtor and creditor till that time their relationship remained bilateral.705

4.5 CONCEPT OF SHARIAH COMPLIANCE: MERITS AND DEMERITS

We are all fully aware of this fact that the international and global market706 in the field of finance is fully dominated by and under control of the system of conventional banking.707 However, on account of some advantages of system of Islãmic banking, the tree of the industry of this sector has expanded very quickly and rapidly during the last ten year (decade), progressing and growing at the speed and rate of 10-12%. Many number of international conventional banks and local conventional banks have jumped

704 Datta, T. K., and A. K. Pal. "Effects of inflation and time-value of money on an inventory model with linear time-dependent demand rate and shortages." European Journal of Operational Research 52, no. 3 (1991): 326-333. 705 Suzuki, Koji. "Method and system to prevent fraudulent payment in credit/debit card transactions, and terminals therefor." U.S. Patent 6,612,488, issued September 2, 2003. 706 Warde, Ibrahim. ISLMIC finance in the global economy. Edinburgh University Press, 2000. 707 Ariss, Rima Turk. "Competitive conditions in ISLMIC and conventional banking: A global perspective." Review of Financial Economics 19, no. 3 (2010): 101-108.

293 ______and stepped into the sea of Shariah financial industry by promoting and establishing the Islãmic units708 and Islãmic wings709 in their unique system of existing and running banks. The system of Islãmic banking was initiated and came into existence almost 40 years ago and at its first time it was limited only countries of Middle East,710 but in few years, it has become an active and effective stool and tool for finance and development in the worldwide activities and include the countries of non-Muslims.711

Islãm is such a religion that gives a complete code of life712 to the humanity. It also provides a very simple, unique, comprehensive and complete economic system which considered the best alternative system for both the system i.e. for capitalism also for socialism modes.713 It has good qualities and values for both the world without touching and any type of evil. The rules, regulations and laws of this system are divine and that is why it is a better system than a man-made rules and laws714 of a system in all respects. The resources of revenues715 of the Islãmic state are USHR and zakat.716 The

708 Ahmad, Ausaf, Tariqullah Khan, and Munawar Iqbal. "Challenges facing ISLMIC banking." ISLMIC Develop" ment Bank Occasional Paper 1, no. 08 (1998). 709 Aubin, Françoise. "Islam on the Wings of Nationalism: The Case of Muslim Intellectuals in Republican China.'V: Intellectuals in the Modern ISLMIC World: Transmission, Transformation, Communication. Stéphane A. Dudoignon et al., ur." (2006): 241-272. 710 Hossain, Mohammed, and Shirley Leo. "Customer perception on service quality in retail banking in Middle East: the case of Qatar." International Journal of ISLMIC and Middle Eastern Finance and Management 2, no. 4 (2009): 338-350. 711 Amin, Muslim, Zaidi Isa, and Rodrigue Fontaine. "ISLMIC banks: Contrasting the drivers of customer satisfaction on image, trust, and loyalty of Muslim and non-Muslim customers in Malaysia." International Journal of Bank Marketing 31, no. 2 (2013): 79-97. 712 Hassaballah, Abdel Moneim. "Definition of death, organ donation and interruption of treatment in Islam." Nephrology Dialysis Transplantation 11, no. 6 (1996): 964-965. 713 Therborn, Goran. What does the ruling class do when it rules? state apparatuses and state power under feudalism, capitalism and socialism. Verso Books, 2016. 714 Cook, Walter Wheeler. "The Logical and Legal bases of the Conflict of Laws." Can. B. Rev. 21 (1943): 249. 715 Kotler, Neil G., Philip Kotler, and Wendy I. Kotler. Museum marketing and strategy: designing missions, building audiences, generating revenue and resources. John Wiley & Sons, 2008. 716 Mohammad, Faiz, and Muhammad Anwar. "Prospects of Poverty Eradication Through the Existing" Zakat" System in Pakistan [with Comments]." The Pakistan Development Review 30, no. 4 (1991): 1119-1129.

294 ______state expends and uses these funds for the betterment and welfare of the people and the state. These funds are also used for the defense of the state.717 This system does not allow the existence and use of usury (interest). The philosophy in prohibition of interest is this, that in this system of interest, the rich starts to lend their money to the needy and poor people for getting some fixed money as interest over this principal amount. And in in this way, the society becomes inactive and all the productive activities are stopped and also slowed the speed of economic and other cycle and circle of trade because the rich (capitalist) do not invest their money in risky factors718 of productive activities.719

4.5.1 MERITS OF ISLÃMIC ECONOMIC SYSTEM a) DEMOCRATIC IN NATURE

Islãm is considered dynamic,720 active and diversified721 kind of religion and it offers and provides a complete and comprehensive system of economics. It also gives the powers to individuals and people to get reward and prize of their productive struggles and efforts. There a democratic way and process in Islãm of exercising the powers and authorities. In this regard, the Qurãn advises it in verse, “And they conduct their affairs by mutual consultation.

717 Trapp, Kimberley N. "Back to Basics: Necessity, Proportionality, and the Right of Self-Defence Against Non-State Terrorist Actors." International & Comparative Law Quarterly 56, no. 1 (2007): 141-156. 718 Humair, Franziska, Christoph Kueffer, and Michael Siegrist. "Are non-native plants perceived to be more risky? Factors influencing horticulturists' risk perceptions of ornamental plant species." PloS one 9, no. 7 (2014): e102121. 719 Baker, Lindsey A., Lawrence P. Cahalin, Kerstin Gerst, and Jeffrey A. Burr. "Productive activities and subjective well-being among older adults: The influence of number of activities and time commitment." Social Indicators Research 73, no. 3 (2005): 431-458. 720 Glass, Thomas A., Carlos Mendes De Leon, Richard A. Marottoli, and Lisa F. Berkman. "Population based study of social and productive activities as predictors of survival among elderly Americans." Bmj 319, no. 7208 (1999): 478-483. 721 Hitt, Michael A., Robert E. Hoskisson, and Hicheon Kim. "International diversification: Effects on innovation and firm performance in product-diversified firms." Academy of Management journal 40, no. 4 (1997): 767-798.

295 ______“now it is very clear that head-crown722 of the Islãmic state will have to consult in all matters with his Shura Assembly723 about the state.” 724 b) PROVISION OF NECESSITIES OF LIFE

The economic system of Islãm provides the common and basic interest of society just like socialism setting aside the rigid policy725 and philosophy of common ownership726. And this the very basic and primary duty of the Islãmic state that it should manage and provide the basic and primary necessities and needs of life just as food, shelter, education and clothing to every people and every citizen who lives in the country.727 c) ENFORCEMENT OF ISLÃMIC LAW

It is the primary duty of the Islãmic state to implement and enforce of Shariah laws in all over the country. It should also watch the economic affairs and activities and provision of justice in daily routine of life, so that all the citizens can continue their activities of all fields and lead their lives in atmosphere of satisfaction, peace, justice and financial and economic stability. 728 d) ECONOMIC JUSTICE

In an Islãmic state, it is its argent duty to provide, arrange, and manage equal opportunities and chances of employment and developments in the system

722 Sibanda, Bancinyane L., Dimitri Y. Chirgadze, and Tom L. Blundell. "Crystal structure of DNA-PKcs reveals a large open-ring cradle comprised of HEAT repeats." Nature 463, no. 7277 (2010): 118. 723 Husain, S. A. "The" Shura"." Journal of the Pakistan Historical Society 3, no. 2 (1955): 151-165. 724 Bayat, Asef. Making Islam democratic: Social movements and the post-Islamist turn. Stanford University Press, 2007. 725 Bernanke, Ben S., and Frederic S. Mishkin. Inflation targeting: a new framework for monetary policy? No. w5893. National Bureau of Economic Research, 1997. 726 Risse, Mathias. "The right to relocation: disappearing island nations and common 727 Piller, Gordon J. "Introduction." In Longevity and Quality of Life, pp. 187-188. Springer US, 2000. 728 Coulson, Noel James. A history of ISLMIC law. AldineTransaction, 2011.

296 ______of economics to all the individuals and people and citizens irrespective race, caste and the colour. 729 e) SOCIAL JUSTICE

The state is also responsible provide the equal, quick and rapid justice for all the citizens. All the people, rich, poor, ruler, teacher, judges and all others should be equal before the eyes of law. All the institutions including the courts should perform and work punctually, regularly and honestly peace and justice to all the people in the society.730 f) UTILIZATION OF RESOURCES

The state should make their best to utilize the resources of economic field for the social as well as economic welfare of the citizens.731 g) STABILITY IN THE PRICE LEVEL

It is also a duty of the state to maintain and implement stable prices in the state. In this respect, the government should make and frame a plan of fiscal and monetary policy.732 h) ECONOMIC FREEDOM

There is freedom in an Islãmic state and every person is allowed to take and adopt any kind of profession or trade or business according to the law. So, it is responsibility of the state provide full protection and safety. 733

729 Yusuf, Sayyid Muhammad. Economic justice in Islam. Sh. Muhammad Ashraf, 1971. 730 Qutb, Sayyid. Social justice in Islam. BookBaby, 2015. 731 Fong, Liana Liyow, Ajei Sarat Gopal, Nayeem Islam, Andreas Leonidas Prodromidis, and Mark Steven Squillante. "Flexible dynamic partitioning of resources in a cluster computing environment." U.S. Patent 6,366,945, issued April 2, 2002. 732 Ahmed, Ziauddin, Munawar Iqbal, and M. Fahim Khan, eds. Money and banking in Islam. Produced for the International Centre for Research in ISLMIC Economics, King Abdul Aziz University, Jeddah by Institute of Policy Studies, 1983. 733 Islam, Sadequl. "Economic freedom, per capita income and economic growth." Applied Economics Letters 3, no. 9 (1996): 595-597.

297 ______i) BILATERAL RELATIONS

The Islãmic state try its best to develop good relations especially with Muslim world and advocate relations of such kind with others in general. The state always promotes cooperation with those countries who are every time ready for the service and benefit of humanity.734 j) ESTABLISHMENT OF BAITULMAL

All the revenue and all expenditures of an Islãmic state are managed and run through a Baitulmal that is called a central bank of the state. The all items of revenue and types of expenditures of Baitulmal are already fixed in Islãm. 735 k) COLLECTION OF ZAKAT AND USHR

Islãm introduces the system of Zakat and USHR in replacement of the revenue and all expenditures. An Islãmic state can take and collect zakat and USHR from all its citizens. It is also in its power to impose new taxes and can also the required money from inside and also from outside the state.736 l) FARE DISTRIBUTION OF WEALTH

It also the duty and responsibility of the Islãmic state to implement and enforce the fair system of distribution of wealth. Islãm does not like the concentration of money and wealth in some or few hands.737

734 Haider, Ziad. "Sino-Pakistan Relations and Xinjiang9s Uighurs: Politics, Trade, and Islam along the Karakoram Highway." Asian Survey 45, no. 4 (2005): 522- 545. 735 Possumah, Bayu Taufiq, and Abdul Ghafar Ismail. "Baitul Mal and Legal Constraint: Public Wealth Management in Malaysian Context." International Journal of Academic Research in Business and Social Sciences 2, no. 11 (2012): 27. 736 Clark, Grace. "Pakistan's Zakat and'Ushr as a Welfare System." ISLMIC Reassertion in Pakistan (1986): 79-95. 737 Aggarwal, Rajesh K., and Tarik Yousef. "ISLMIC banks and investment financing." Journal of money, credit and banking (2000): 93-120.

298 ______m) PROMOTE FINANCIAL JUSTICE

This is a main and basic principle of Islãmic system of economics. This system creates and provides a balance for receiving the net profit and loss among the borrower, lender, beneficiary and entrepreneur. Suppose if the Islãmic bank is financing a project, the profit or output will be given and distributed equally between both the parties. If a financier has some hopes expectations of receiving some profits from a certain project, then he will have to agree to get the share of loss similarly. 738 n) FINANCIAL INCLUSION

All the Muslims avoid and refrain from the dealings and transactions from banking made through the conventional banking system because it is standing on the pillars of interest in which an extra money is paid or received on the principal amount. This practice is totally forbidden in Islãm. In fact, at about three-quarter countries of the world are away from this banking system. now the Islãmic banking is trying its best to remove all these hurdles and barriers and is allowing all the Muslims to get the benefit from the system of Islãmic banking.739 o) REDUCES THE IMPACT OF HARMFUL PRODUCTS AND PRACTICES

Islãmic system of economics stops the goods restricts the services which are forbidden in Islãm, for example alcoholic beverages, gambling, tobacco, pornography, etc. irrespective of whether they are allowed or not allowed, legal or illegal in a country.740

738 Hassan, M. Kabir, and Rasem N. Kayed. "The global financial crisis, risk management and social justice in ISLMIC finance." ISRA Journal of ISLMIC Finance, Forthcoming (2009). 739 Demirguc-Kunt, Asli, Leora Klapper, and Douglas Randall. "ISLMIC finance and financial inclusion: measuring use of and demand for formal financial services among Muslim adults." Review of Middle East Economics and Finance 10, no. 2 (2014): 177-218. 740 Iqbal, Zamir, and Abbas Mirakhor. An introduction to ISLMIC finance: theory and practice. Vol. 687. John Wiley & Sons, 2011.

299 ______p) STRENGTHENS FINANCIAL STABILITY

In Islãmic finance, the money, investment and profit approached carefully and cautiously and the way and process of decision –making is adopted and carried out totally and thoroughly unlike the way of conventional banking system. All the companies that appear as risky are kept away usually from all the financial institutions. So, for this reason, the global financial crisis of 2008, the institutions of Islãmic banking remained untouched. With careful and detailed audits and true analysis, the Islãmic financial institute reduces and lessens all the occurrences of all types of risks and promotes and enhances the stability financial field. 741 q) ETHICAL AND MORAL VALUES

The ethical norms and moral values are the best salient characteristics and features of Islãmic banking system. This system plays a major, important and pivotal role in enhancing socially desirable investments and better and effective individual and corporate association as well as attitude and behavior. 742

4.5.2 DEMERITS OF ISLÃMIC ECONOMIC SYSTEM  Implementation is difficult Islãmic system of economics is based on pillars of the moral values, so the enforcement implementation of its laws seems difficult.  Zakat and USHR is not verified  USHR also difficult the verification of the record of collection and process of calculation of Zakat and all USHR.  Prayers calculation is not true The prayer calculation and its reward are also difficult to show it true.  Escape of the responsibility is easy

741 Čihák, Martin, and Heiko Hesse. "ISLMIC banks and financial stability: An empirical analysis." Journal of Financial Services Research 38, no. 2-3 (2010): 95- 113. 742 Saeed, Mohammad, Zafar U. Ahmed, and Syeda-Masooda Mukhtar. "International marketing ethics from an ISLMIC perspective: A value-maximization approach." Journal of Business Ethics 32, no. 2 (2001): 127-142.

300 ______It is very easy escape and give up the duty and responsibility of zakat and USHR any time.  Difficult to compete other system It is also not easy to keep pace with other systems of economics that all are based on interest around the world. Because this is completely and totally forbidden prohibited in Islãmic system.  Collaboration with other system is difficult Due to the basic rules laws, the collaboration of Islãmic economics with other systems of the world seems also difficult.  Implementation on non-Muslim is difficult The enforcement and implementation of this system is also very difficult on non-Muslim societies.743 4.6 GLIMPSES (ADSPECTUS) OF THE CHAPTER  Highlighted the Islãmic Commandments apropos the ``RIBÃ`` (interest or usury).  Explained the difference between Islãmic Economy and capitalistic approach.  Got across the asset-backed finance.  Illuminated the forms of RIBÃ such as RIBÃ al-jahiliah, RIBÃ al-nasiah, RIBÃ al-fdl, RIBÃ al-duyun, RIBÃ al-buyu, RIBÃ al-qard, etc.  Discussed the views of Modernists and Rivialists.  Quoted the Qurãnic verses and A hadiths about RIBÃ, its admissibility and inadmissibility in Shariah.  Maintained the opinions of companions and Islãmic jurists regarding RIBÃ and its forms.  Elaborated Islãmic principles of trade such as trust, honesty, justice, mutual respect, fair trade, lawful earnings, creation of facilities, good reputation, good behavior, truth, avoiding of swear, avoiding of dishonesty, prohibition of old coins, prohibition of harmful trading, and shortage of measure, etc.

743 Tessler, Mark. "Do ISLMIC orientations influence attitudes toward democracy in the Arab world? Evidence from Egypt, Jordan, Morocco, and Algeria." International Journal of Comparative Sociology 43, no. 3-5 (2002): 229- 249.

301 ______ Agitated the tools and instruments of Islãmic mechanism of trade and finance including Musharkah, MUDÃRABAH, Murabahah, SALAM, ISTISNÃ, and IJÃRAH, etc.  Illustrated the history of Islãmic Banking since 1970 in theoretical perspective.  Contained and entertained the Islãmic Principles concerning banking embracing Maiser, GHARAR, Material Finality, Debt-based Contract, intrinsic value of money, medium of exchange, zakat and USHR, risk sharing policy, early payment of debt, etc.  Accumulated the information’s about Islãmic Shariah Board, its duties, obligations, responsibilities.  Advised to enhance social harmony in Islãmic business and finance.  Justified and explained the merits of Islãmic ECONOMIC SYSTEM such as democratic in nature, provisions of necessities of life, enforcement of Islãmic law, economic justice, social justice, utilization of recourses, establishment of Bai-ul-mal, stability in price, economic freedom, bilateral relations, collection of zakat and ushr, fare distribution of wealth, promotion of financial justice, reduction of harmful products and practices, ethical and moral values and financial inclusion etc.  Exposed some demerits of Islãmic ECONOMIC SYSTEM such as implementation of Shariah, verification of zakat and ushr, record of zakat and ushr, prayer calculations, escape of responsibility, difficult to compete others, and implementation on non-Muslims, etc.

302 ______

CHAPTER 5

CRITICAL APPRECIATION OF FRANCHISE BUSINESS IN ISLÃMIC PERSPECTIVE

303 ______CHAPTER #5

5.1 Introduction 5.2 concept of intellectual property rights-juristic discussion 5.2.1 Rights, meaning, features and types of rights 5.2.2 Meaning and definition 5.2.3 Features/ nature of rights 5.2.4 Types of rights 5.2.5 Concept of intellectual rights or intellectual property rights 5.2.6 Some fields that include intellectual property rights 5.3 Concept of “legal person” & its validity in Shariah 5.3.1 Definition and meaning 5.3.2 Legal person 5.3.3 Artificial personality, juridical personality, or juristic personality: 5.3.4 The history of legal person: 5.3.5 The value/validation of a legal person in Shariah 5.3.6 Some basic differences between natural person & legal person: 5.4 Different aspects of franchise & their Islãmic validation 5.4.1 Prolusion 5.4.2 The real and the ideal tools and instruments of Islãmic finance and franchise business 5.4.3 MUSHÃRAKAH 5.4.4 MUDÃRABAH 5.4.5 MURÃBAHAH 5.4.6 IJÃRAH (leasing) 5.4.7 SALAM 5.4.8 ISTISNÃ 5.5 Franchise disclosure document (FDD) and Islãmic law of business 5.5.1 Introduction to FDD; 5.5.2 FDD and Islãmic law of business 5.5.3 Legal justifications of franchise business in Islãmic Shariah 5.6 Glimpses (adspectus) of the chapter 5.7 Final conclusion 5.8 Suggestions and recommendations

304 ______5.1 INTRODUCTION

Solid and detailed discussion about the denotative and connotative meaning and concept of ``Right `` will be entertained in section 2 of this chapter. A juristic discussion upon thought and idea of Intellectual Property Right would be manifested to the depth. The nature, features and significance of ``Rights`` have been highlighted and justified. Important types of rights will be mentioned. Natural rights and its kinds and categories would be brought to light. Similarly, moral rights and its types have been elaborated and depicted also. Classifications of intellectual property rights are considered and spelled out. The meaning, definition, sense and concept of Legal Rights in its literal and figurative sensation will be introduced. All types of LPR would be illustrated and classified. At the end of this section, a comprehensive report, juristic study and discussion will be exhausted. The definition, meaning and nature of Legal Person have been demonstrated. Concept of Entity and Legal Entity has been clarified. Kinds of legal entity would be declared. History of legal person could be arranged. The validation of legal person in Shariah will be justified. Two books have been reviewed in this regard. Gigantic problems and issues about legal person would also be examined. An analytical and critical appraisal will be managed. A new discussion of legal person, separate legal person and limited liability has been elucidated. Findings and suggestions are maintained. A theoretical report apropos the detailed and distinctive differences between legal person and natural person has been prepared, explicated, examined and made known in the public. Twenty-three (23) elements of franchise business will be enumerated. The Islãmic validation of franchise business and its all elements in Islãmic Shariah would be justified. Elements and instruments of Islãmic banking and finance such as MUSHÃRAKAH, MUDÃRABAH, MURÃBAHAH, SALAM, ISTISNÃ, and IJÃRAH are considered to be discussed in detail and justification, validation in Shariah, vindication and exoneration of Shariah rules must be contained and spelled out. Similes, metaphors, sameness, resemblance, and analogousness between the elements of Shariah business and the elements of franchise business proved, interlocked and interdigitated with the help of arguments and proofs.

305 ______Working process of the mechanism of Islãmic business and franchise business, their method, philosophy and structure will be reviewed and revived. Some advisable, considerable, notable, acceptable, recognizable and justifiable remarks, opinions, proofs, arguments and evidences will be deciphered, explicated, justified and validated according to the rules and principles of Islãmic Economic System and Shariah.

5.2 CONCEPT OF INTELLECTUAL PROPERTY RIGHTS- JURISTIC DISCUSSION

In this section, no stone has been left unturned to dilate upon the rights, its kinds and in the last, about the “INLECTUAL PROPERTY RIGHTS”, Abstract Rights, Contractual Rights and Conceptual Rights.

5.2.1 RIGHTS, MEANING, FEATURES AND TYPES OF RIGHTS

Prof. H. J. LASKI rightly remarked and commented that, “A state is known by the rights it maintains.”744 He further says “that in an authoritarian country or state, the people virtually do not enjoy liberty. But in the state having democracy, people and individuals enjoy a number of liberties. It is fact that the persons having right of this type are not tantamount to an isolated being. There is no meaning and importance of the rights unless they are accepted, recognized and upheld by the state. Really the rights of the people become the duty of other people. Rights can prevail and implement only in a state and also it promotes values to the philosophy of liberty and all kind of equality.”745

Rights are very important and fundamental term; it enjoys an essential status in the social life. A person cannot realize or recognize well his “best” without having due rights. 746

744 Laski, Harold Joseph. Political thought in England from Locke to Bentham. No. 103. Holt, 1920. 745 Hawtrey, Ralph. "The Gold Standard." Theory and Practice (1947). 746 Amankwah, Alex H. "Constitutions and Bills of Rights in third world nations: issues of form and content." Comparative and International Law Journal of Southern Africa 21, no. 2 (1988): 190-211.

306 ______These are the major and essential situations and conditions that are very necessary for the wellbeing of both, the individual and the society at large. It is possible only in this position that when a person is enjoying his rights freely and completely, then he can develop and promote his personality and give full contributions and services to the society to best of his efforts.747

5.2.2 MEANING AND DEFINITION

In simple words, these are such common claims748 of the persons of the country, which are recognized in every civilized and cultured society, as an essential basic claim for the development of both, the man and the society. These rights are enforced the government of the state.749

Some important definitions are given in the following,

 “rights are those conditions of social life without which no man can seek in general, to be himself at his best.” (LASKI)750  “Rights are powers necessary for the fulfillment of man`s vocation as a moral being.” (T. H. GREEN)751  “Rights are nothing more nor less than those social conditions which are necessary or favorable to the development personality.” (BENI PRASAD)752 As such, all types of rights are very common and accepted claims and recognized facts of the people which very necessary for their promotions and development and progress as human beings.

747 Laski, Harold Joseph. Authority in the modern state. Vol. 1. Yale University Press, 1919. 748 Gernsbacher, Morton Ann, and Sarah R. Pripas-Kapit. "Who's missing the point? A commentary on claims that autistic persons have a specific deficit in figurative language comprehension." Metaphor and symbol 27, no. 1 (2012): 93- 105. 749 Brennan Jr, William J. "State constitutions and the protection of individual rights." Harvard Law Review (1977): 489-504. 750 Laski, Harold Joseph. The foundations of sovereignty and other essays. Harcourt, Brace, 1921. 751 Vincent, Andrew. The philosophy of TH Green. Gower Publishing Company, 1986. 752 Prasad, Beni. India's Hindu-Muslim Questions. G. Allen & Unwin ltd., 1946.

307 ______5.2.3 FEATURES/ NATURE OF RIGHTS  Rights can exist only in a society. These are called the products of a civilized society.  Right are called the claims of the people for the developments of their personality in the society.  Rights are called the common claims of all the individuals and are accepted recognized by all the civilized societies.  Rights are considered as moral or rational demands and claims of the persons that they make on their society.  The rights are only practicable in society, so they cannot be practiced and exercised out of and against the society. Rights are for the development of the people in a society and this development is attached by promotion and progress of a social good. That is why the rights can never be used against the social good.  All kinds of rights equally and positively are available to all the persons.  Rights are not always absolute. They are always supposed to bear some limitations that are deemed and considered very basic and essential for promoting maintaining of public security, health, morality and order.  Rights and duties are reciprocal to each other. There is a very close connection between them “No Duties No Rights, No Rights No Duties.” it means that if I have some rights, now it my duty and responsibility to respect the rights of others in the society.  People can enjoy these rights only after the implementation and enforcement of these rights. It the responsibility of the state to protect and enforce them by power of laws. Now all the features described in the rights discussed above, have clearly brought out the nature of the Rights. We can easily understand the difference between the rights and the duties.753

753 Hegel, Georg Wilhelm Friedrich. The philosophy of right. Hackett Publishing, 2015.

308 ______5.2.4 TYPES OF RIGHTS

The classifications of all the rights are managed into two main categories:

 Moral rights 754  Natural rights755

Moral rights are based on our ethical knowledge756 and awareness and on the sense of justice and also morality. These rights normally are not accepted and enforced by the court of law but often by the practice of customary provisions.757 There is no punishment for the breach of such rights by the state. But on the other side all types of the legal rights758 are accepted and managed by the state and also implemented by the court of law. Therefore, there is punishment for the violation of such laws.759

All types of legal rights can be divided into further two main categories:

 Civil rights 760  Political rights 761

All types of civil rights are very basic for the free development of people social development. For example: Right to life, right to property and Right to liberty and all included in these categories and in the absence of these rights,

754 Sumner, Leonard Wayne. "The moral foundation of rights." (1987). 755 Cirtautas, Arista M. The Polish Solidarity movement: revolution, democracy and natural rights. Routledge, 2002. 756 Beckstrand, Jan. "The notion of a practice theory and the relationship of scientific and ethical knowledge to practice." Research in nursing & health 1, no. 3 (1978): 131-136. 757 Penna, Lakshmikanth R. "Written and customary provisions relating to the conduct of hostilities and treatment of victims of armed conflicts in ancient India." International Review of the Red Cross Archive 29, no. 271 (1989): 333- 348. 758 Stone, Christopher D. "Should Trees Have Standing--Toward Legal Rights for Natural Objects." S. CAl. l. rev. 45 (1972): 450. 759 Coleman, Jules L., and Jody Kraus. "Rethinking the theory of legal rights." Yale LJ 95 (1985): 1335. 760 Janoski, Thomas. Citizenship and civil society: A framework of rights and obligations in liberal, traditional, and social democratic regimes. Cambridge University Press, 1998. 761 Nowak, Manfred. UN covenant on civil and political rights: CCPR commentary. NP Engel, 1993.

309 ______no citizens can enjoy his life. Other rights of the people to participate in the matters of the state just like taking part in election, full association with the government of the state; all such types of rights are known and accepted as Political rights. These rights are of such types with which the people and persons do not enjoy on their personal level or private level but really, they enjoy in the capacity of being the citizens of the particular states. In the recent years, a new category of rights namely economic rights 762has been joined in the list of legal rights.763

SOME OF THE IMPORTANT TYPES OF RIGHTS ARE GIVEN BELOW: a) NATURAL RIGHTS  Right to life764  Right to liberty765  Right to property766 b) MORAL RIGHTS  Good Conduct767  Courtesy768  Moral behavior769

762 Gauri, Varun, and Daniel M. Brinks, eds. Courting social justice: judicial enforcement of social and economic rights in the developing world. Cambridge University Press, 2008. 763 Hunt, Lynn Avery. Inventing human rights: A history. WW Norton & Company, 2007. 764 Fabre, Cécile. Social rights under the constitution: Government and the decent life. OUP Oxford, 2000. 765 Wilsher, D. "Right to Liberty and Security." (2013): 121-152. 766 Gordon, Harold R. "Right of Property in Name, Likeness, Personality and History." Nw. UL Rev. 55 (1960): 553. 767 Wang, Lifeng, Sen Lin, Kaifeng Lin, Chengyang Yin, Desheng Liang, Yan Di, Peiwei Fan, Dazhen Jiang, and Feng-Shou Xiao. "A facile synthesis of highly ordered mesoporous carbon monolith with mechanically stable mesostructure and superior conductivity from SBA-15 powder." Microporous and mesoporous materials 85, no. 1 (2005): 136-142. 768 Aresty, Esther B. The best behavior: the course of good manners-from antiquity to the present-as seen through courtesy and etiquette books. Simon and Schuster, 1970. 769 Anderson, Steven W., Antoine Bechara, Hanna Damasio, Daniel Tranel, and Antonio R. Damasio. "Impairment of social and moral behavior related to early damage in human prefrontal cortex." Nature neuroscience 2, no. 11 (1999): 1032- 1037.

310 ______c) LEGAL RIGHTS ARE OF THREE TYPES:

All types of legal rights are accepted by all the states in the world and implemented, enforced and managed by the state. In any type of breach and break of such rights and such privileges one can go and take the shelter and help in the court of law. Therefore, all these rights are implementable and enforceable in all the courts of law. Further types of legal rights are three types such as civil rights, political rights and economic rights.770

Some important rights of all the legal rights are the following:

a) CIVIL RIGHTS

These rights are fully consisted of such privileges in the absence of such rights nobody can recognized his best self. Some important civil rights are given in the following:

 RIGHT TO LIFE

Every citizen is entitled to have the right to life and also to protect and save his body. It is called the fundamental right of a human existence.

 RIGHT TO LIBERTY

Having this right, a citizen can enjoy and benefit all such privileges freely in the state for the development of his inner self without any hurdles and hindrance. In this regard, Prof. Gil Christ has this opinion, “Mere life without movement would be meaningless and without the exercise of human faculties it would not rise above the level of that animals.”771 The freedom of arbitrary arrest and detention make a citizen able to see redressal in the room of court of law.

770 Warbasse, Elizabeth Bowles. The Changing Legal Rights of Married Women, 1800-1861. Dissertations-G, 1987. 771 Hamermesh, Lawrence A., and A. Gilchrist Sparks III. "Corporate Officers and the Business Judgment Rule: A Reply to Professor Johnson." The Business Lawyer (2005): 865-876.

311 ______ RIGHT TO EQUALITY

It is fact, all the people are born equal and they should be treated in all walks of life equally and this is the spirit and essence of this right. It is considered as the first rule and principle of the system of the system democracy and there is some punishment for the offenders and breakers of such laws. There is also punishment for the people who commit mistakes under the similar atmosphere and circumstances.772

 RIGHT TO PROPERTY

This right creates a sense of possession in a mind of a citizen. Having this right, it also promotes the responsibility and full interest to work. But on the other hand, if the state think is better for the development of the community and for the interest of the society can restrict this right. 773

 RIGHT TO CONTRACT

In this right, a person of a state can deal himself all types of transactions and contracts with his fellows and friends and other people that are based on equality.774

 RIGHT TO FAMILY

Due to this right, a citizen and individual can enjoy freely with his family in the state.775

772 De Vos, Pierre. "Grootboom, the right of access to housing and substantive equality as contextual fairness." South African Journal on Human Rights 17, no. 2 (2001): 258-276. 773 De Vos, Pierre. "Grootboom, the right of access to housing and substantive equality as contextual fairness." South African Journal on Human Rights 17, no. 2 (2001): 258-276. 774 Fiser, Harvey L., and Paula K. Garrett. "It Takes Three, Baby: The Lack of Standard, Legal Definitions of Best Interest of the Child and the Right to Contract for Lesbian Potential Parents." Cardozo JL & Gender 15 (2008): 1. 775 Thym, Daniel. "Respect for private and family life under Article 8 ECHR in immigration cases: a human right to regularize illegal stay?" International & Comparative Law Quarterly 57, no. 1 (2008): 87-112.

312 ______ RIGHT TO FORM UNION & ASSOCIATION

This right gives the authority and power to a person to lead his life in a group, union and class.776

 RIGHT TO FREEDOM OF RELIGION & CONSCIENCE

This right award the power to the individuals to choose their religion freely. But in spite of this the state is entitled to implement some restrictions on this right on the basis of morality, on the basis of maintenance of law and order and on the basis of decency. 777

 RIGHT TO FREEDOM OF SPEECH & EXPRESSION

In the demarcating state, the citizen has this right of freedom to make a speech and to express his views and thoughts freely and these things are called the corner stone of the state of the democracy. Prof. H. J. LASKI in this connection, “To allow a man to say what he thinks is to give his personality the only ultimate challenge of free expression and his citizenship, the only means of moral adequacy.” 778

 RIGHT TO LANGUAGE & CULTURE

This right give, the authority to the citizens to choose any language and to adopt any culture in the state and he is given this right also to protect and promote them. 779

776 Gross, James A. "A human rights perspective on United States labor relations law: A viWest, Ellis M. "The Right to Religion-Based Exemptions in Early America: The Case of Conscientious Objectors to Conscription." Journal of Law and Religion 10, no. 2 (1993): 367-401.olation of the right of freedom of association." Emp. Rts. & Emp. Pol'y J. 3 (1999): 65. 777 West, Ellis M. "The Right to Religion-Based Exemptions in Early America: The Case of Conscientious Objectors to Conscription." Journal of Law and Religion 10, no. 2 (1993): 367-401. 778 Barendt, Eric. Freedom of speech. Oxford University Press, 2005. 779 McDougal, Myres S., Harold D. Lasswell, and Lung-chu Chen. "Freedom from discrimination in choice of language and international human rights." S. Ill. ULJ 1 (1976): 151.

313 ______ RIGHT TO MOVEMENT

This right give, the position to the citizen that he can move and travel in all the territories and all the areas of the state without any legal hurdles.780

 RIGHT TO EDUCATION

To get minimum education, intellectual learning and basic training in a state without any reservation. 781

 RIGHT TO FREEDOM OF ASSEMBLY

A citizen has the right to freedom to manage and arrange the people in a ground in a peaceful way without having arms in the state.782 b) PLITICAL RIGHTS

These rights grant the opportunity to all the citizens to participate in the administration of the state. Some important political rights are being given in the following:

 RIGHT TO VOTE

It is very important and basic political right and also considered and known as a right to franchise. Every citizen who is adult has this right to cast his costly vote freely without any fear in the election. It also confers the state of the right against discriminatory dealing in this regard.783

780 Salah Fahmi, Wael. "Bloggers' street movement and the right to the city. (Re) claiming Cairo's real and virtual “spaces of freedom”." Environment and urbanization 21, no. 1 (2009): 89-107. 781 Glenn, Charles Leslie, and Jan De Groof. Finding the right balance: freedom, autonomy and accountability in education. Vol. 1. Boom Koninklijke Uitgevers, 2002. 782 Quigley, John. "The Relation Between Human Rights Law and the Law of Belligerent Occupation: Does an Occupied Population Have a Right to Freedom of Assembly and Expression." BC Int'l & Comp. L. Rev. 12 (1989): 1. 783 Keyssar, Alexander. The right to vote: The contested history of democracy in the United States. Basic Books, 2009.

314 ______ RIGHT TO BE ELECTED

This right grant, this position to a citizen to contest in the election, to cast his vote and right to be elected. The system of democracy does not rest on the basis of heredity but it rests on the basis of election. 784

 RIGHT TO HOLD A PUBLIC OFFICE

According to this right a citizen is entitled to manage a public office in the legal areas in connection with the establishment procedure and without fear and any discrimination.785

 RIGHT TO CRITICIZE

According to this right a citizen can criticize the policies of the government and can object the mishandled objects of the governments.786

 RIGHT TO PETITION

If a citizen thinks that any type of his right is being spoiled, he can file a petition against the action of the government without any fear.787

 RIGHT TO DISCUSS PUBLIC POLICY

Due to this right, the people can discuss the public policy openly sometimes to appreciate and sometime to criticize these policies. This action of the people makes the government to walk on the right path. 788

784 Rosenberg, Morris. "Misanthropy and political ideology." American sociological review 21, no. 6 (1956): 690-695. 785 Heinisch, Reinhard. "Success in opposition–failure in government: explaining the performance of right-wing populist parties in public office." West European Politics 26, no. 3 (2003): 91-130. 786 Pfander, James E. "Sovereign Immunity and the Right to Petition: Toward a First Amendment Right to Pursue Judicial Claims Against the Government." Nw. UL Rev. 91 (1996): 899. 787 Smith, Norman B. "Shall Make No Law Abridging...: An Analysis of the Neglected, but Nearly Absolute, Right of Petition." U. Cin. L. Rev. 54 (1985): 1153. 788 Glicken, Jessica. "Getting stakeholder participation ‘right’: a discussion of participatory processes and possible pitfalls." Environmental Science & Policy 3, no. 6 (2000): 305-310.

315 ______ RIGHT TO RESIDENCE

According to this right, a citizen of a state can reside in any part of the state and can settle anywhere in the state.789

 RIGHT TO PROTECTION WHILE STAYING ABROAD

When any citizen goes aboard or in foreign states and stays there and entitled to enjoy and get all types of rights of protection from the side of his native state. 790

 RIGHT TO PUBLIC MEETING

According to J. S. Mill, “The entire world has no right to silence a fool.” According to this right a citizen has this freedom to exchange his views and opinions in a public meeting without any fear from any side. 791 c) ECONOMIC RIGHTS

These rights are very important and basic for the citizens of a state in connection with the right to work, right to rest and right to leisure etc. Without the availability of these rights, a civilized life and living is impossible in the state. There has been given much weight age and importance towards these rights in the socialist states. So, some important economic rights are the following:

 RIGHT TO WORK

According this economic right, a citizen can work of his own will in any part of the state.792

789 Franklin, Julian H. John Locke and the theory of sovereignty: mixed monarchy and the right of resistance in the political thought of the English Revolution. CUP Archive, 1981. 790 Root, Elihu. "The basis of protection to citizens residing abroad." In Proceedings of the American Society of International Law at Its Annual Meeting (1907-1917), vol. 4, pp. 16-27. American Society of International Law, 1910. 791 Gostin, Larry, and William J. Curran. "Legal control measures for AIDS: reporting requirements, surveillance, quarantine, and regulation of public meeting places." American journal of public health 77, no. 2 (1987): 214-218. 792 Velasquez, Manuel G., and Manuel Velazquez. Business ethics: Concepts and cases. Vol. 111. Upper Saddle River, NJ: Prentice Hall, 2002.

316 ______ RIGHT TO ADEQUATE WAGES

This right gives the entitlement to a citizen to get a reasonable wage in the country.793

 RIGHT TO LEISURE AND REST

This right also confers this power to the citizens that they can take rest and have a leisure when they want in any place, anywhere and anytime in all the areas of the state.794

 RIGHT TO SOCIAL SECURITY

According to this right, a man has this right to get such facilities in the shape social security hospital in any difficult time of disease and illness etc.795

5.2.5 CONCEPT OF INTELLECTUAL RIGHTS OR INTELLECTUAL PROPERTY RIGHTS

All types of such rights exist in thoughts or on ideas but not having a physical or concrete existence, such as love, beauty and truth etc. In short, we can say all these rights are called intangible rights or assets such as literary, artistic and musical works, discoveries and inventions, and words, phrases, symbols and designs. Common types of intellectual property rights include copyright, trademarks, patents, industrial designs, trade dress and in some jurisdiction trade secrets. Actually, intellectual property rights connect its reference to the creations of the mine, such as inventions, literary and artistic works, and symbols, names, and images in the field of commerce.

793 Büttner, Thomas, and Susanne Rässler. Multiple imputation of right-censored wages in the German IAB Employment Sample considering heteroscedasticity. No. 2008, 44. IAB discussion paper, 2008. 794 Richards, David L., and Benjamin C. Carbonetti. "Worth what we decide: a defense of the right to leisure." The International Journal of Human Rights17, no. 3 (2013): 329-349. 795 Hodgkin, Rachel, Peter Newell, and UNICEF. "Implementation Handbook for the Convention on the Rights of the Child." (1998).

317 ______Intellectual property rights are divided into two categories industrial property includes patents for inventions, trademarks, industrial designs and geographical indications.796

Some important types of intellectual property rights are given below: a) COPYRIGHT

Copyright is considered as a legal right and it is made by the law of the country. It is also considered exclusive rights also for the owner of this right. This can be used for the limited time. These rights are not accepted as absolute right but it is exercised in some limitations and exception in law. A main limitation of this right is to protect the only original expression of ideas those are not underlying thinking’s themselves. It is considered as an intellectual property also and these rights are frequently including the reproduction control on derivative work, distribution, public performance and moral rights such as attribution. These rights also thought as a territorial right, it means that these rights cannot go out of the boundary of territory of the fixed Jurisdiction. We can maintain the standard of copyright by an international copyright agreement and it is different in the different countries. The duration of copyright extends or expands the whole life of the author that is generally counted 50 to 100 years. 797 b) MORAL RIGHTS

Moral rights are actually called the rights of the creators of copyright that is working in civil laws jurisdictions. These laws are also considered in some limitations of some common laws. They gather the right of attribution, the right to have a work printed and published anonymously or on the other side pseudonymously and the right towards the integrity of a work and this aspect of the integrity of a work permits the author to have object to alteration, distortion or mutilation of a work because this called “prejudicial to the authors, owners or reputation.” Sometimes these moral rights are considered

796 Einarsen, Ståle, Merethe Schanke Aasland, and Anders Skogstad. "Destructive leadership behaviour: A definition and conceptual model." The Leadership Quarterly 18, no. 3 (2007): 207-216. 797 Nimmer, David. Nimmer on copyright. LexisNexis, 2013.

318 ______as distinct and different from any economic rights that are joint to copyright. Sometimes an artist has given his or her copyright to the third party to work on it, in spite of that he or she still has the moral rights to the work. 798 c) PATENTS

A patent is actually being considered a set of exclusive rights awarded by the Sovereign states to the inventor or an assignee for the period of limited duration in exchange for the detailed public disclosure of the inventions. An invention commonly is considered a solution of a particular technology problem and it is also called a process or project. Patents rights are also called a form of intellectual property right. When these rights were given to an inventor, a comprehensive agreement is written between the countries in the light of national laws and international agreements. Everything is written in detail about time duration and all others thing concern it. 799 d) TRADE MARKS

A trademark, or trade-mark, is an acceptable sign, expression, or design that distinguishes and identifies the products or services of a specific source from the others, and the trademarks used to distinguish services are generally called` service marks. The owner of a trademark may be a business organization, any legal entity, or an individual. A trademark can easily be located on the surface of a package, on a label, on a voucher, or on the side of product itself. For the purpose of cooperating identity, trade-marks are mostly displayed in the buildings of a company. 800 e) DATABASE RIGHT

The database right is accepted and considered as a property right but it is distinct and distinguished from copyright that is working and existing to recognize the investment that is managed in compiling a database even

798 Adeney, Elizabeth. The moral rights of authors and performers: an international and comparative analysis. OXFORD University press, 2006. 799 Jaffe, Adam B. "Technological opportunity and spillovers of R&D: evidence from firms' patents, profits and market value." (1986). 800 US Patent & Trademark Office, US Dep’t of Commerce, "Manual of Patent Examining Procedure." (2001).

319 ______when this does involve the “creative” side and aspect that is the reflection of copyright.801 f) INDUSTRIAL DESIGN RIGHT

It is also a type of intellectual property right. It protects the value of visual design of objects those are not utilitarian. An industrial design comprises and consist of the type of creation of a shape, configuration or composition of the pattern or colour or combination of some pattern or some colour etc. This design can have or two or three-dimensional pattern also to make product, handicraft or industrial item commodity. 802 g) INTELLECTUAL RIGHT TO MAGIC METHODS

These rights are the type of legal and ethical rights. The limitations of these rights include the proprietary or exclusive rights. It is also a right that is processed and exercise with magic tricks or illusions or other types of this tricks perform. It is subject of the kind of controversy on one side many a people who are magicians they claim that these are intellectual property and also are developed or promoted by the organizations of the magicians. But on the other hand, some people of this procession they claim that the methods of magic should not be limited because a plenty of knowledge is available in this field. 803 h) PERSONALITY RIGHTS

These rights in other words are called as the rights of publicity. These rights are used by an individual to control the value of commercial use of her name, image, likeness or other types of unequivocal aspects of one’s identity. It is commonly considered and accepted as a type of property right as distinct from personal right. The validity and importance of the right of publicity can

801 Baker, Brenda Sue, and Eric Grosse. "System and method for restricting user access rights on the internet based on rating information stored in a relational database." U.S. Patent 5,678,041, issued October 14, 1997. 802 Buchanan, Richard. "Human dignity and human rights: Thoughts on the principles of human-centered design." Design issues 17, no. 3 (2001): 35-39. 803 Buchanan, Richard. "Human dignity and human rights: Thoughts on the principles of human-centered design." Design issues 17, no. 3 (2001): 35-39.

320 ______lasts and survive the actual position of the death of the individual and it is different in position in the different jurisdiction. Personality rights are considered of two types more such as the right of publicity and it is similar to a trademark and also same to the right of privacy. Sometimes these are included in the realm of the tort of passing off. Some people say about these rights that they are called natural right.804 i) TRADE DRESS

Trade dress is generally considered a legal term of art and it touches to the characteristics of the item of visual appearance of the product or its packing sometime design of a building and it also refers the source of the outlet and the product to side of customers. It is also called a type and form of intellectual property. 805 j) PLANT BREEDERS` RIGHTS

Plant breeder’s right are known and considered as plant variety rights. These rights give the authority to the breeder of a new variety of the plant that gives the exclusive control to the breeder on the propagating all the material “including seeds, cutting, divisions. Tissue, cultures” and also have the right to harvest the material “cut flowers, fruit, foliage” of a new variety for the number of years. Enjoying these rights sometimes the breeders can choose for himself to become the exclusive marketer of the new variety or to license the new variety to some other persons. 806

804 Coors, Corinna. "Headwind from Europe: The new position of the German courts on personality rights after the judgment of the European Court of Human Rights." (2010). 805 Davis Jr, Theodore H. "Copying in the Shadow of the Constitution: The Rational Limits of Trade Dress Protection." Minn. L. Rev. 80 (1995): 595. 806 Louwaars, Niels P., D. J. F. Eaton, R. Hu, K. Pal, R. Tripp, V. Henson- Apollonio, M. Mendoza, F. Muhhuku, and Joseph Wekundah. Impacts of strenghtened intellectual property rights regimes on the plant breeding industry in developing countries: a synthesis of five case studies. Wageningen University, 2005.

321 ______k) PASSING OFF

In the countries of common law such as Australia, New Zealand and England, passing off is called and considered a common law tort, and it is used to enforce and implement all the unregistered trademark rights. The tort of passing off fully protects the importance of the good will of trader from the side of misrepresentation. This law also prevents and stops a trader from the action of mispresenting the goods or services that is being the good and services of another. It also forbids a trader from the practice of holding out his or her goods or services as having and possessing some association or connection with another person when this is not true and right. 807

5.2.6 SOME FIELDS THAT INCLUDE INTELLECTUAL PROPERTY RIGHTS a) ARTISTIC WORK Following items are considered and recognized to be interdigitated in the field of Artistic Work.  MUSIC

Music is considered as an art form and the type of cultural activity whose medium is called sound that is organized and managed in time. The common and important element of the music is called pitch that controls melody and harmony and also rhythm and it is also connected with the concepts and thoughts of tempo, meter and articulation besides this the dynamics (loudness and softness) are also managed in this system. So, this is also a very vast field in which the owner and inventor can enjoy the rights freely according to the rules and regulations of the state. There are so many subtypes of the music are available in the different in the countries such as popular music, traditional music, art music, music written for religious ceremonies and classical music etc. 808

807 Nimmer, David. "The moral imperative against academic plagiarism (without a moral right against reverse passing off)." DePaul L. Rev. 54 (2004): 1. 808 Kretschmer, Martin, George Michael Klimis, and Roger Wallis. "The changing location of intellectual property rights in music: A study of music publishers,

322 ______ PAINTING

Painting is field in which the practice of applying and doing paint, pigment, color or the other medium for the solid and strict surface of the base. The very common item that us used in this field is a brush and other elements are knives, sponges and air brushes can also be used. This field is the model and field of the creative expression. There are forms and kinds of paintings are available in the market such as drawing, gesture, gestural painting, composition, narration, abstraction etc. The important items that are used in the painting are walls, paper, canvas, glass, lacquer, clay, leaf, copper and concrete. Many items used in the painting such as sand, plaster, gold leaf as well as some objects. The term “painting” is also used and considered outside the field of art as a common trade.809

 SCULPTURE

Sculpture is called the branch of a visual art and it operates completely in three dimensions. It is called the type of plastic art. In this field, some important items and materials are used such as stone, metal, ceramics, wood, and materials also. 810 b) COMPUTER PROGRAM

The computer program is the collection and compound of some instructions that makes a specific work when executed by any type of the computer. Basically, a computer demands program to function and that in other word typically it executes the programs instructions in a Central Processing Unit (CPU) it is generally written (A Computer Program) by a computer programmer in the form of the programming language. The source code, a

collecting societies and media conglomerates." Prometheus 17, no. 2 (1999): 163- 186. 809 Toews, G. B., P. R. Bergstresser, and J. W. Streilein. "Epidermal Langerhans cell density determines whether contact hypersensitivity or unresponsiveness follows skin painting with DNFB." The Journal of Immunology 124, no. 1 (1980): 445-453. 810 Krasilovsky, Galina. "A sculpture is worth a thousand words: The First Amendment Rights of homeowners publicly displaying art on private property." Colum. -VLA JL & Arts 20 (1995): 521.

323 ______compiler and machine code are also used in the system. The term interpreter, algorithm, libraries, data, software, publication software or system software are also used in the system. 811 c) INDIGENOUS INTELLECTUAL PROPERTY

Indigenous intellectual property is called an umbrella and this legal term is used and exercised in the national and international level for the identification of the indigenous people. It is famous that it is spread first of all in the western and is promoted and enhance by the world intellectual property organization. Being an active part of United Nations, it promotes this field that is called intangible culture heritage. This is commonly used and accepted in the United Nations also. 812

 INVENTION

An invention is a called a very unique or novel device, method, composition or process. This process is used commonly in the forum of engineering. It can be great an improvement upon a new machine or product or a new process for creating an object or a result. Such works are called novel that is not obvious to others skilled in the same field. On some level, the meaning of invention is also considered as cultural invention that is really an innovative combination of useful social behaviors. All the types of inventions mostly extent the limitations of human knowledge, experience and capability. 813

 SERVICE MARK

Service mark or Service mark is generally considered as a trademark commonly used in the United States and some other countries to identify the

811 Cheney, Paul H. "Effects of individual characteristics, organizational factors and task characteristics on computer programmer productivity and job satisfaction." Information & Management 7, no. 4 (1984): 209-214. 812 Posey, Darrell Addison, and Graham Dutfield. Beyond intellectual property: toward traditional resource rights for indigenous peoples and local communities. IDRC, 1996. 813 Cunningham, Andrew. "Getting the game right: Some plain words on the identity and invention of science." Studies in History and Philosophy of Science Part A 19, no. 3 (1988): 365-389.

324 ______type of service in spite of a product. The service mark is registered in the federation and there are different types of symbols are used in this field. There is a difference between a service mark and trademark. In a trade mark, the practice is used on the advertising of the service in spite of the packing or delivery of the service. So, on the other hand a service mark is different to this. There are also rules and regulations exercised in different countries of the world for the registration of the service mark. The state promotes it and also protects it so that is why service mark is very important like a trademark in the field of conceptual right.814

 TRADE SECRET

A trade secret is considered in a general definition a practice, process, design, formula, pattern, commercial method or compilation of information by which a business can get and achieved the economic advantage on the side of competitors or customers. These trade secrets are called as “Confidential Information” but not considered as “classified Information” in the United States. So, since that time these trade secrets are called government secrets and also protected by some rules and laws and also some practices by the state. 815

5.3 CONCEPT OF “LEGAL PERSON” & ITS VALIDITY IN SHARIAH 5.3.1 DEFINITION AND MEANING a) AN ENTITY: Is something that exists as itself, as a subject or as a question, really or conceivably, solidly or uniquely, physically or not? It requires not be of material presence. Specifically, deliberations and legitimate fictions are typically viewed as substances. As a rule, there is likewise no assumption that an element is quicken, or show.

814 Semadeni, Matthew. "Minding your distance: How management consulting firms use service marks to position competitively." Strategic Management Journal 27, no. 2 (2006): 169-187. 815 Argento, Zoe. "Killing the Golden Goose: The Dangers of Strengthening Domestic Trade Secret Rights in Response to Cyber-Misappropriation." Yale JL & Tech. 16 (2013): 172.

325 ______The word is theoretical in expectation. It might allude, for instance, to Bucephalus, the stallion of Alexander; to a stone; to a cardinal number; to a dialect; or to phantoms or different spirits.

The word entitative is the modifier type of the thing substance. Something that is entitative is considered in its own right. b) IN PHILOSOPHY Ontology is the study of being, existence and the recognition of entities. The words ontic and entity are derived respectively from the ancient Greek and Latin present participles that mean "being". c) IN LAW;

In law, a legal entity is an entity that is capable of bearing legal rights and obligations, such as a natural person or an artificial person (e.g. business entity or a corporate entity). d) IN POLITICS

In politics, entity is used as term for territorial divisions of some countries (e.g. Bosnia and Herzegovina). e) IN MEDICINE

In medicine, a disease entity is an illness due to a particular definite cause or to a specific pathological process. While a disease entity is not defined by a syndrome, it may or may not be manifest in one or more particular syndromes.

5.3.2 LEGAL PERSON

A legal person,816 is generally called `` person`` in a legal field and context. It means all the human beings, all types of firms, all the agencies of governments, all organizations all other institutions that are accepted and recognized that they have the legal rights and also obligations that they can have the ability and capability to act as a party in the contracts, have rights

816 Dewey, John. "The historic background of corporate legal personality." The Yale law journal 35, no. 6 (1926): 655-673.

326 ______to sue against a party, or have to face the risks of a petitions against itself or to be sued. 817 a) LEGAL ENTITY

Any human or non-human entity is called “legal entity.” Any kind of human or non-human entity just as a government agency, any human being or all types of firms that are accepted that they have legal and all obligations, for example they can enter themselves in an attraction transaction of contents that they can sue and they can also face to be opposed and to be sued. This term “Legal person or Legal personality” are not clear in definition and also used into the opposite meaning of natural person it means this term is very synonym and same for the term of non-human legal entities. 818

NOTABLE AND COMPRIHENSIVE POINT`` the legal scholars say that no doubt the term`` Legal Person `` is very confused, ambiguous and not clear but in spite of all these differences and contradictions to or against “Natural Person,” this term (legal person) is commonly and generally used as a synonym team that refers to identify only to “non-human legal entities.”819 b) KINDS OF LEGAL ENTITIES

According to different legal experts there are two kinds of legal entities:

817 Iwarsson, Susanne, and Agnetha Ståhl. "Accessibility, usability and universal design—positioning and definition of concepts describing person-environment relationships." Disability and rehabilitation 25, no. 2 (2003): 57-66. 818 Pickering, Murray A. "The company as a separate legal entity." The Modern Law RRorke, Lucy Balian, Roger J. Packer, and Jaclyn A. Biegel. "Central nervous system atypical teratoid/rhabdoid tumors of infancy and childhood: definition of an entity." Journal of neurosurgery 85, no. 1 (1996): 56-65. eview 31, no. 5 (1968): 481-511. 819 Rorke, Lucy Balian, Roger J. Packer, and Jaclyn A. Biegel. "Central nervous system atypical teratoid/rhabdoid tumors of infancy and childhood: definition of an entity." Journal of nGkoutos, Georgios V., Chris Mungall, Sandra D̈ olken, Michael Ashburner, Suzanna Lewis, John Hancock, Paul Schofield, Sebastian K̈ ohler, and Peter N. Robinson. "Entity/quality-based logical definitions for the human skeletal phenome using PATO." In Engineering in Medicine and Biology Society, 2009. EMBC 2009. Annual International Conference of the IEEE, pp. 7069-7072. IEEE, 2009.eurosurgery 85, no. 1 (1996): 56-65.

327 ______ Human 820  non-Human821 c) NATURAL PERSONS

Similarly, according to some legal scholars, natural persons are called Human entities and they are also called physical persons. So, it is a group of words that signify the legal entities in a group that is called human entities, Natural persons or physical person. 822 d) JURIDICAL PERSONS

This is the other kind of legal entities that is called non-human entities and there are different synonyms that are used for this kind; such as Juridical persons, Juridic Persons, artificial persons, legal persons, fictitious persons or juristic persons. 823 e) PERSONA FICTA

This is the Latin word and it is also used for some kind of entities such as organizations and co-operations etc. and these entities including the definition or meaning of Persona Ficta. They are considered and treated just like a human person but only in the domain of laws. 824

820 Gkoutos, Georgios V., Chris Mungall, Sandra D̈ olken, Michael Ashburner, Suzanna Lewis, John Hancock, Paul Schofield, Sebastian K̈ ohler, and Peter N. Robinson. "Entity/quality-based logical definitions for the human skeletal phenome using PATO." In Engineering in Medicine and Biology Society, 2009. EMBC 2009. Annual International Conference of the IEEE, pp. 7069-7072. IEEE, 2009. 821 Murdoch, Jonathan. "Inhuman/nonhuman/human: actor-network theory and the prospects for a nondualistic and symmetrical perspective on nature and society." Environment and planning D: Society and Space 15, no. 6 (1997): 731- 756. 822 Winters, L. Alan, Terrie L. Walmsley, Zhen Kun Wang, and Roman Grynberg. "Liberalising temporary movement of natural persons: an agenda for the development round." The World Economy 26, no. 8 (2003): 1137-1161. 823 Paust, Jordan J. "Judicial power to determine the status and rights of persons detained without trial." Harv. Int'l LJ 44 (2003): 503. 824 Koessler, Maximilian. "The Person in Imagination or Persona Ficta of the Corporation." La. L. Rev. 9 (1948): 435.

328 ______f) DIFFERENCE

Human beings have the ability to acquire “Legal Personhood” as and when they are born but on the other side the`` Juridical Person ``have the ability at the time when are entered in some contracts to incorporate in accordance with law. 825 g) LEGAL PERSONHOOD (LEGAL PERSONALITY)

This is the basic condition that is called prerequisite to a legal capacity or deed with which the legal person can amend and change the terms and condition of a deed, enter into it, transfer it and move it to any place according to the rights and obligations.826 h) LEGAL PERSONHOOD (LEGAL PERSONALITY) IN INTENATIONAL LAW:

It is also a basic and preliminary term and condition that is called requisite for all kind of international corporations and organizations by it, it can sign, enter, transfer and change all the international contracts, transactions and treaties using its own name. 827

5.3.3 ARTIFICIAL PERSONALITY, JURIDICAL PERSONALITY, OR JURISTIC PERSONALITY:

All these names are considered is the basic characteristics of all types of non-living entity in the language of law. According to law, this non-living entity is also called a synonym to personhood also. Similarly, in Latin language a word persona Ficta is also used in place of all these words which means in legal terms that an entity for which we call persona Ficta; which are entitled to enjoy certain rights, privileges, protections, all responsibilities and all liabilities in the field of law and this entity is very similar to those of a natural person. This concept is considered as fundamental and basic legal fiction

825 Dewey, John. "The historic background of corporate legal personality." The Yale law journal 35, no. 6 (1926): 655-673. 826 Sacco, Rodolfo. "Legal formants: a dynamic approach to comparative law (Installment I of II)." The American Journal of Comparative Law 39, no. 1 (1991): 1-34. 827 Portmann, Roland. Legal personality in international law. Vol. 70. Cambridge University Press, 2010.

329 ______and this philosophy of law will always have effect on the corporation’s laws. All the judicial personhood allows to one or all-natural persons that is called UNIVERSITAS PERSONARUM and supposed to act in the capacity of single entity just like a body corporate in all the legal purposes and objects. But in some Jurisdiction, such artificial personhood allows only to that legal entity just as individual member of a board, for example: there is company that is limited by shares and its shareholders etc. In all types of transactions all the legal entities can file an application for the purpose of suing, be filed against it, enter transactions, incur all types of debt and can have the rights to own any type of property. So, now it’s clear that legal entity or legal personality have the same rights and obligations as about the payment of taxes, income tax and house tax etc. So, this entity will work just like a natural person in all the deeds as it wants. 828 a) ACCORDING TO SOME COMMON LAW JURISDISTIONS:

There is difference between a corporation aggregate just you think of a company which have a number member and on the other hand corporation in which a single person is supposed to be head as a single person. 829

Now, it will be thrown light on the facts to explain the difference between corporation aggregate and corporation sole in the following, b) CORPORATION SOLE

This is a type of such type of corporation in which a single man is all in all. For example: The Archbishop of Canterbury. This is called a corporation sole.830

828 Mühlberger, Andreas, Matthias J. Wieser, Martin J. Herrmann, Peter Weyers, Christian Tröger, and Paul Pauli. "Early cortical processing of natural and artificial emotional faces differs between lower and higher socially anxious persons." Journal of neural Blumenthal, Dannielle, and Alan Bergstrom. "Brand councils that care: Towards the convergence of branding and corporate social responsibility." The Journal of Brand Management 10, no. 4 (2003): 327- 341.transmission 116, no. 6 (2009): 735-746. 829 Blumenthal, Dannielle, and Alan Bergstrom. "Brand councils that care: Towards the convergence of branding and corporate social responsibility." The Journal of Brand Management 10, no. 4 (2003): 327-341. 830Kantowicz, Edward R. Corporation Sole: Cardinal Mundelein and Chicago Catholicism. University of Notre Dame Press, 1983.

330 ______c) CORPORATION AGGREGATE It is called such type of corporation in which a single person in not all in all but a company and its members are involved in it.831 d) THE ARCHBISHOP OF CANTERBURY

It is a type of single corporation sole. Because a single person is running and managing everything and he is all in all from every respect and in every field of life.832 e) JUDICAL PERSONALITY IS NOT ABSOSUTE

The concept of Judicial personality is not a final and absolute, in the definition of law they can change their decision similarly they can make new agreements according to times and occasion. Their duties, rights, liabilities and responsibilities can also be dealt in the same way. 833 f) ACCORDING TO WESTERN COMMON LAW

According to western common law, this entity has the same value and importance in both the laws in common law and civil law also. It has all the values on the same levels. 834 g) ACCORDING TO WESTERN CIVIL LAW:

According to western civil law all the benefits duties and responsibilities are same. But more or less the importance of legal personality is found in every legal system of every country.835

831 Herder, Matthew, and Jennifer Dyck Brian. "Canada’s stem cell corporation: Aggregate concerns and the question of public trust." Journal of Business Ethics 77, no. 1 (2008): 73-84. 832Coakley, James Farwell. The Church of the East and the Church of England: a history of the Archbishop of Canterbury's Assyrian Mission. Oxford University Press on Demand, 1992. 833 Veeder, Van Vechten. "Absolute Immunity in Defamation: Judicial Proceedings." Columbia Law Review 9, no. 6 (1909): 463-491. 834 Hanauer, Laurence S. "The irrelevance of self-determination law to ethno- national conflict: a new look at the Western Sahara case." Emory Int'l L. Rev.9 (1995): 133. 835 Foucault, Michel, Alain Baudot, and Jane Couchman. "About the concept of the “dangerous individual” in 19th-century legal psychiatry." International journal of law and psychiatry 1, no. 1 (1978): 1-18.

331 ______h) EXAMPLES

The important examples of the Legal entities in the history are the following: i) CORPERATIVES:

It is called a business organization. Similarly, in a democratic way all the members of this organization work in a group for mutual and collective benefits and their interests. This is a type of corporation that is promoted by a single person and in this type of corporation a single person is all in all. For example: “The crown in a common wealth.” The other type is that in which more person works than one person and that is called the corporation aggregate.836 j) MUNICIPAL CORPORATIONS (MUNICIPALITIES)

Basically, these are the creatures of statues. And on the other hand, we establish organization of such types also by statues but that statues are called legal person. For example: European Economic Interest Grouping.837 k) UNICORPORATED ASSOCIATIONS

It is the combination of two or more than two persons and also exercise and accepted, treated and promoted as Judicial person in all the countries. 838 l) PARTNERSHIPS

It is also a combination of two or more than two persons in the business field for profit and loss agreement. According to tradition these partners cannot

836 Hodson, H. V. "Crown and commonwealth." The Round Table 84, no. 333 (1995): 89-95. 837 Yogesh, Sabde D., and Sanjay P. Zodpey. "Respiratory morbidity among street sweepers working at Hanumannagar Zone of Nagpur Municipal Corporation, Maharashtra." Indian journal of public health 52, no. 3 (2007): 147-149. 838 Crane, Judson A. "Liability of Unincorporated Association for Tortious Injury to a MeFriel, Sharon, Deborah Gleeson, Anne-Marie Thow, Ronald Labonte, David Stuckler, Adrian Kay, and Wendy Snowdon. "A new generation of trade policy: potential risks to diet-related health from the trans pacific partnership agreement." Globalization and health 9, no. 1 (2013): 46. mber." Vand. L. Rev. 16 (1962): 319.

332 ______continue these legal personalities but can performs their duties independently, honestly and punctually. 839 m) COMPANIES

This is a type of business association and it carries out and works in the field of industrial enterprise. All the corporations of such types, trade unions, unlimited companies, trusts, funds, limited liabilities companies, a private limited company by guarantee, Private limited company by shares and public limited company etc., are all called entities having the duties and responsibilities, advantages and disadvantages and losses and benefits also in the same manner mentioned above. 840 n) SOVEREIGN STATE

All the type of sovereign state in the world are called legal persons. 841 o) INTERNATIONAL LEGAL SYSTEM

In the system of international legal level, different types of organizations and corporations work similarly. The name of such associations is in the following: Inter governmental organization, the united nation, The Council of Europe, International Organization, Sovereign Military Oder Malta and religious Order etc. 842 p) THE EUROPEON UNION

The Europe union has the value of legal personality since the enforcement of Lisbon treaty on December 1, 2009. Similarly, the E.U to join the European

839Friel, Sharon, Deborah Gleeson, Anne-Marie Thow, Ronald Labonte, David Stuckler, Adrian Kay, and Wendy Snowdon. "A new generation of trade policy: potential risks to diet-related health from the trans pacific partnership agreement." Globalization and health 9, no. 1 (2013): 46. 840 Koetsier, John. "Facebook: 15 million businesses, companies, and organizations now have a Facebook page." San Francisco, CA: VentureBeat (2013). 841 Springer, Allen L. "International law of pollution: Protecting the global environment in a world of sovereign states." (1983). 842 Charney, Jonathan I. "The impact on the international legal system of the growth of international courts and tribunals." NYUJ Int'l L. & Pol. 31 (1998): 697.

333 ______convention on human rights (E.C.H.R). In 2014 European court on human rights also being established by the European Union. 843 q) TEMPLES

All the types of temples in some legal systems, not in all the legal systems, have the value of legal personalities 844 r) THE WHANGANUI RIVER

The New Zealand law was awarded and granted the legal personality to the river of Whanganui River in march 2017. Because this river was considered of their ancestors of the tribe of “Whanganui-Maori tribe.” 845 s) THE GANGES RIVER

The high port of Uttara hand awarded the legal personality to this river in March 2017. 846

Keeping in view the discussion mentioned above, all organizations are not called legal personalities. For example, all the boards of directors of a corporation, the legislature or all the governmental agencies are not called legal agencies typically. They have no power to use legal rights as an independent basis on behalf of corporation or the political body that they are the part of.

5.3.4 THE HISTORY OF LEGAL PERSON:

The history of legal personhood is considered as old as Ancient Rome. Different types of collegial institutions were supposed to enjoy all the benefits under the limitations of Roman law. This doctrine was also exercised in the

843 Dinan, Desmond. "Ever closer union: an introduction to European integration." Basingstoke, Hampshire (1999). 844 Taylor, Romeyn. "Official Altars, Temples and Shrines Mandated for All Counties in Ming and Qing." T'oung Pao 83, no. 1 (1997): 93-125. 845 Young, David. Woven by water: Histories from the Whanganui River. Huia Publishers, 1998. 846 Yeung, Leo WY, Nobuyoshi Yamashita, Sachi Taniyasu, Paul KS Lam, Ravindra K. Sinha, Dnyandev V. Borole, and Kurunthachalam Kannan. "A survey of perfluorinated compounds in surface water and biota including dolphins from the Ganges River and in other waterbodies in India." Chemosphere 76, no. 1 (2009): 55-62.

334 ______age of Pope Innocent -4. They practiced and preached this idea in the remote areas of the countries and they called it “Persona FICTA.” According to this doctrine all the monasteries had been allowed to exercise and have the right of a Legal Existence in the country but it was not closer to them. So, they simplified the process and removed the hurdles and created such type of groups felt need for infrastructures on the recommendation of the monks. But they were bound to show their personal poverty only. This idea was also promoted rapidly that the monasteries are fictional persons and they are not liable to be guilty of delict (AN OFFENCE AGAINST THE LAW) because they have not souls. They helped to protect all the organizations from the effect of contractual responsibilities in the community. This was also finalized that all individuals had souls and they are capable of being guilty of excommunication and also negligence. because they had souls along with them.847 a) IN COMMON LAW OF TRADITION

According to this law, only a single individual had the right to sue or also to be sued. This issue was not before the era of Industrial Revolution. A typical kind of business organization was running at that time. The partnership whether it was sole or aggregate, the owners were responsible only for the amount of debts of all the business. This is also a merit of a corporation that the owners and all shareholders could enjoy the benefits of Limited Liability,848 in which the shareholders were not responsible for the debts of a company or an organization. So, in case of breaching of contract or law, there is no compensation or remedy for the individuals because in the system of Limited Liability, the owners and any corporation were not a Legal Person.849 So, to solve this issue, the legal personality was established of

847 Nijman, Janne Elisabeth. The concept of international legal personality: an inquiry into the history and theory of international law. Cambridge University Press, 2004. 848 Brander, James A., and Tracy R. Lewis. "Oligopoly and financial structure: The limited liability effect." The American Economic Review (1986): 956-970. 849 Llewellyn, Karl N. The common law tradition: Deciding appeals. Vol. 16. Quid Pro Books, 2016.

335 ______about a corporation for the purpose of including the Five legal types of rights, that are following: b) SAMPLE CASES

There are so many cases in which all the rights and facilities are recommended for a legal person just as natural person. Among all the cases following three cases are very important that we shall present for the examination of the researchers and readers just for information. The cases are the following c) IN U.S vs THE COOPER CORP

In 1941, the government of United States has the right to sue under the Sherman act. Section seven of the act given the right to sue only to persons, according to the court of U.S.A government. The case was this that the corporate illegally raised the prices on tyres but on the other side it was declared that the U.S government did not use the power to implement the act because the government was not considered as a person. So, in this case the court gave its decision that the term “person” should include the U.S government also. After this decision, the government was allowed to take action against the practice of collusive corporation in all type of male practices. 850 d) IN COOK COUNTY vs U.S. EX REL CHANDLER

In 2003, the county was blamed of violating such a law which prevents “any person” from unfair and false obtaining research funds from the side of the government. In this case, the county got 5 million U.S dollar but used it to conduct unreasonable and inappropriate types of test about the subject of humanity. But the county gave its argument that it could not be responsible because it was not given the name a “person”. So, after long discussion the

850 Alexander, Elizabeth. "" We must be about our father's business": Anna Julia Cooper and the in-corporation of the nineteenth-century African-American woman intellectual." Signs: Journal of Women in Culture and Society 20, no. 2 (1995): 336-356.

336 ______court gave its decision that the county could be considered under the law for suing as a “legal person”.851 e) IN ROWLAND vs CALIFORNIA MEN’S COLONY, UNIT-11 MEN’S ADVISORY COUNCIL

In 1993, the court refused to extend the certain rights to legal persons. The class is the association of prisoners thought to proceed in forma pauperis. In this case the court gave its decision that the right to sue and to take action in forma pauperis can be used only for natural person, not for legal persons.852

After reading this discussion about the sample cases, it is clear now and easy to understand that all the types of right and facilities are not given to the legal persons. According to the laws and the decisions of the courts all the types of the rights, duties, responsibilities and facilities are given to the legal persons only in this situation when they work just like a natural person. f) THE BASIC RIGHTS OF A LEGAL PERSONS OR LEGAL PORSONALITIES

All countries in the world have their basic rights for their citizens. They have made rules and regulations about these rights. They also have the sections and some important decision of the courts about such rights and facilities of the citizens. We shall mention some important countries in which these rights are considered as the basic rights of the legal persons in some entities but totally for the natural persons every time. The names of such countries are the following: g) U.S.A

In the United States, it is mentioned that the legal persons are simply organizations of all the natural persons. It is also mentioned that the part of such rights is based on the history of statutory explanation and interpretation

851 Brooker, Gregory G. "The False Claims Act: Congress Giveth and the Courts Taketh Away." Hamline L. Rev. 25 (2001): 373. 852 Weisselberg, Charles D. "Brief for Respondent (with co-counsel and students), Rowland v. California Men's Colony, Unit II, Men's Advisory Council, 506 US 194 (1993)."

337 ______of the word “Person”. In this connection U.S Supreme Court has given its decision repeatedly that all such exact and certain constitutional rights gave the safety and protect also all such legal persons (such as a type of corporations and all other organizations). 853 h) SANTA CLARA vs SOUTHERN PACIFIC RAILROAD

SANTA CLARA vs SOUTHERN PACIFIC RAILROAD is often cited for the purpose of finding of this decision that the court says about this case the Chief Justice made his decision orally first. The justice started to tell about this decision that the court is not wishing to hear the arguments and opinions on this question whether the provision of all types in the “Fourteenth Amend mend to the Constitution, it forbid the states to refuse any type of person living in its Jurisdiction the equal protection of the laws is applied to all such corporations.” We are all the people of such type have such opinions in this case.854

After this decision, some opinions came out and gave their comments that this is a part of a legal decision. As a result, all the people know the First Amend mend, the Congress does not stop the free speech of a corporation or the political action class are dictating some coverage of the local newspaper. On the other hand, as far as the Due Process Clause. Any state or government is not titled to have the property of the corporation without adopting the right process of law and adjusting such compensation. They made it clear that such protections and safeties are only for legal entities, not for just corporation.855

A very important and prominent case is concerned here in which the supreme court decision about Citizens United vs Federal Election Commission, in this case the Supreme Court made some unconstitutional

853 Zucca, Lorenzo. "Constitutional dilemmas: conflicts of fundamental legal rights in Europe and in the USA." (2005). 854 Horwitz, Morton J. "Santa Clara revisited: The development of corporate theory." W. vs. l. rev. 88 (1985): 173. 855 Kurland, Philip B. "The Supreme Court, the Due Process Clause and the In Personam Jurisdiction of State Courts. From Pennoyer to Denckla: A Review." The University of Chicago Law Review 25, no. 4 (1958): 569-624.

338 ______restrictions upon the corporate campaign in which it spends so much money on elections. 856 i) BRITAIN

In Britain, there are some important laws are made in which all the types of rights and mentioned in detail. In these laws, it is mentioned clearly that sometimes these rights are used for legal person when they are working in place of natural person. 857 j) CHINA

For a case about an idea of lawful individual in the Jurisdiction of the common law, under the General Principle of Civil Law of The Peoples of Republic of China, Chapter iii, Article 36, "A legitimate individual might be an association that has limit with regards to social liberties and limit of common lead and autonomously getting a charge out of social equality and expect common commitments as per the law." But it is exceptionally eminent imagine that the term social equality is extremely befuddled and furthermore uncertain. The importance of social liberties is distinctive in common law Jurisdictions and diverse in custom-based law Jurisdictions. 858 k) BRAZIL

In this country, the term “legal person” is generally used in legal science for the purpose of designating and entity with all rights and with all liabilities and these entities have also capacity of legal personality. The rules and regulations about the all types of right are mentioned in Brazil Civil Court. 859

856 Bopp Jr, James, and Richard E. Coleson. "Citizens United v. Federal Election Commission: Precisely What WRTL Sought to Avoid." Cato Sup. Ct. Rev. (2009): 29. 857 Forster, Heidi. "The legal and ethical debate surrounding the storage and destruction of frozen human embryos: a reaction to the mass disposal in Britain and the lack of law in the United States." Wash. ULQ 76 (1998): 759-1455. 858 Xin-bin, HU Jin-song GE. "A Legal-Principle Analysis of “Legal-Person Position" of Schools in China [J]." Theory and Practice of Education 6 (2001): 005. 859 Stone, Andrew, Brian Levy, and Ricardo Paredes. "Public institutions and private transactions: a comparative analysis of the legal and regulatory environment for business transactions in Brazil and Chile." Empirical studies in institutional change (1996): 95-128.

339 ______l) GERMANY

In this country, in Article 19(3) of the German constitution declared these rights in this definition, “Fundamental rights shall also apply to domestic artificial persons so far as in so far as the nature of such rights shall permit.” 860 m) ITALY

In the country of Italy, the trade union have the entitlement of all the rights as being the legal personality. It is described in detail in Article 39, paragraph no. 4 of the constitution.861 n) PAKISTAN

In the laws of Pakistan, it is described in detail all the civil rights, natural rights and economic rights etc. It is also stated that when these rights can be used for the legal persons and when for natural persons.862

5.3.5 THE VALUE/VALIDATION OF A LEGAL PERSON IN SHARIAH

In the language of law, the meaning of ` Liability`863 is considered as ` the responsibility` of a person for others especially in the situation of loss whose reason is negligence or will-full, intentional or unruly destruction of any type of property that is kept or held in the possession of any person. So, at this place, it is necessary to know about the meaning of, “Limited Liability.”864 To catch the meaning of Limited Liability, we should familiarize ourselves with

860 Thasler, Wolfgang E., Thomas S. Weiss, Kerrin Schillhorn, Peter-Tobias Stoll, Bernhard Irrgang, and Karl-Walter Jauch. "Charitable state-controlled foundation human tissue and cell research: ethic and legal aspects in the supply of surgically removed human tissue for research in the academic and commercial sector in Germany." Cell and tissue banking 4, no. 1 (2003): 49-56. 861 di Sarsina, Paolo Roberti, and Mara Tognetti Bordogna. "The need for higher education in the sociology of traditional and non-conventional medicine in Italy: towards a person-centered medicine." EPMA Journal 2, no. 4 (2011): 357-363. 862 Lau, Martin. The role of Islam in the legal system of Pakistan. Brill, 2005. 863 Jacobsson, Mans, and Norbert Trotz. "The Definition of Pollution Damages in the 1984 Protocols to the 1969 Civil Liability Convention and the 1971 Fund Convention." J. Mar. L. & Com. 17 (1986): 467. 864 Ribstein, Larry E. "Form and Substance in the Definition of a Security: The Case of Limited Liability Companies." Wash. & Lee L. Rev. 51 (1994): 807.

340 ______the meaning and concept of ``Separate Legal Entity``( Separate Legal Personality ),865 because it is very crucial and difficult to comprehend the meaning and underlying definition and concept of the `` Limited Liability`` on the platform of Islãmic Law.866 It is fact that both the words are derived from the roots of the ``Western Jurisprudence``867 and enhanced, developed and flourished in the period of 18th century.

 INTRODUCTION

In Islãmic law, or FIQH (understanding of law)868 is mostly influenced by the effect of modern corporations on account of their significant and major role in the world. In the field of our “Classical FIQH Literature” 869all types of these concepts and thought were unknown for the people and any kind of search was not done on this expect.

But in spite of this, these are the demands of the time especially legal demands are there every time that new thoughts and concepts of such types should be searched and examined in detail in the light and teaching of Sariah. So that we can easily conclude and take some decision whether the concepts of such type are affirming with the preliminary and basic rules and principles of Islãmic Sariah Law or not.870

Now keeping in view, the legal needs and its concepts, there are two groups who had their opinion on different sides. One group says that the thought and concept of “Limited Liabilities” have their value and does exist in Islãm.

865 Dewey, John. "The historic background of corporate legal personality." The Yale law journal 35, no. 6 (1926): 655-673. 866 Saleh, N. A., & Ajaj, A. (1986). Unlawful gain and legitimate profit in ISLMIC Law: Riba, Gharar, and ISLMIC banking. Graham & Trotman. 867 Beckstrom, John H. "Transplantation of legal systems: An early report on the reception of Western laws in Ethiopia." The American Journal of Comparative Law (1973): 557-583. 868 Johansen, Baber. Contingency in a sacred law: Legal and ethical norms in the Muslim fiqh. Vol. 7. Brill, 1999. 869 Motzki, Harald. The origins of ISLMIC jurisprudence: Meccan fiqh before the classical schools. Vol. 41. Brill, 2002. 870 Mashhour, Amira. "ISLMIC law and gender equality: Could there be a common ground? A study of divorce and polygamy in Sharia Law and contemporary legislation in Tunisia and Egypt." Human Rights Quarterly 27, no. 2 (2005): 562- 596.

341 ______This group also gives some examples such as Waqf,871 Bait-ul-Mall,872 Bequest873 and Abd al mazoon.874 On the contrary, other group says that these concepts are not recognized in Islãm and for the justification of their thinking or thought and they also manage some arguments against the opinion of first group and their examples. In this section, I shall try my best to explain in detail the opinion and concepts of the group who does not accepts and recognizes the reality of Limited Liability in Islãmic Law875 and I shall also try to collect the arguments for the establishment of my claim. So, there is a Qurãnic verse that based on Ijma876 and this verse is very important and very concerning to current issues and topics that are under discussion now. So, ALLAH Almighty says in the Holy Qurãn:

“Verily, Maut (death) does not absolve the debtor from debt. It is for this reason that the debt will be demanded from him in the Akhirah”877

Now on the basis of this verse, the discussion will proceed with the topic and go into the details of the Legal demands, concepts of the time and differences of the opinion of the different of groups.

 REVIEW OF THE BOOKS

Honestly speaking I have consulted many books but frankly speaking I have also read many books and many articles about this topic to get the clear

871 Kuran, Timur. "The provision of public goods under ISLMIC law: Origins, impact, and limitations of the waqf system." Law and Society Review (2001): 841- 898. 872 Sakai, Minako. "Growing together in partnership: Women's views of the business practices of an ISLMIC Savings and Credit Cooperative (Baitul Maal wat Tamwil) in Central Java, Indonesia." In Women's Studies International Forum, vol. 33, no. 4, pp. 412-421. Pergamon, 2010. 873 Bernheim, B. Douglas. "How strong are bequest motives? Evidence based on estimates of the demand for life insurance and annuities." Journal of political Economy 99, no. 5 (1991): 899-927. 874 Qureshi, Rashid Ahmed, and Syed Mir Muhammad Shah. "The legitimacy of Limited Liability in Islam." 875 Kuran, Timur. "The absence of the corporation in ISLMIC law: origins and persistence." The American Journal of Comparative Law 53, no. 4 (2005): 785- 834. 876 Hasan, Ahmad. "The Doctrine of Ijma in Islam: As Study of the Judicial Principle of Consensus." (1992). 877 Punjabi, Riyaz. "019_Doctrine of Ijma in a Secular State Paradox or Dilemma." (2015).

342 ______result and picture on the concept mentioned above. But unfortunately, I was not succeeded to get firm hold on such proper book which can provide me a proper answer so that I may be able to write a research paper on this topic. The main and basic reason is that all the material is in Arabic. But in spite of these realities, some of the books are able to be considered important to some extent. That follows:

 AN INTRODUCTION TO ISLÃMIC FINANCE

This book is very important about the matters of finance and is written by Mufti Taqi Usmani in the year 2007. He is working in the banks now-a-days as Shariah Advisor. He is also working very actively and diligently to bring the solutions of the issues in the banks according to the Islãmic Jurist Prudence and Islãmic Law. In this book, he has discussed and mentioned many topics just as Musharaka, Mudarba, IJÃRAH etc. He has also discussed and argued the idea and concept of Limited Liability especially in a complete chapter. In this book, he has also given and managed the example of Waqf, Bait-ul-Mall etc. to justify and to strengthen of his claim that such types of ideas and concepts were already accepted and recognized in the teaching to Islãmic Law. But however, a direct evidence cannot be trace out on it. He gives some examples to prove his claims and concludes that after the reading and examining such types of examples this fact is come out that the Limited Liability in teachings of Islãmic Law was accepted and recognized by the group of classical Jurist. 878

 ISLÃMIC LAW OF BUSINESS ORGNIZATION: PARTNERSHIPS

This book is very important and famous about the matters of partnerships in business. This book is also written by the prominent and very famous writer and intellectual whose name is Imran Ehsan Khan Nyazee in 1997. This was the first book of its own kind which has managed and given a plenty of information concerning the partnership in the teachings of Islãm. He has also mentioned and discussed many types of partnership that are exercised and

878 Usmani, Taqi. An introduction to ISLMIC finance. Arham Shamsi, 2004.

343 ______implemented in Islãm. After this discussion, he has also mentioned the opinions and concepts of different scholars of the different schools of thoughts, concerning the issues and problems that are involved in way of partnership. At the end of this book he has discussed in detail the Islãmic Forms and types of partnerships for the Modern World. In this book, the author also attempts and struggles to identify some important issues of contemporary concerning in the form of incorporate law and also finance with special reference to Pakistan. The main issues those are highlighted in this book are, “Islãmization of the modern business ad corporation” and issues concerning to partnership just like the question of legal or fictitious personality for the purpose of partnership and for the Limited Partnership in which sometime one or sometime more partners can have limited liability when they sharing the profit of the partnership business. 879

 PROBLEMS AND ISSUES  Whether the Islãmic law accepts and recognizes the value and of the concept of any type of Limited Liability?  Is there any link or relation between “Separate Legal Personality” and “Limited Liability”?  Whether the example of “WAQF” given by the proponent really shows that the concept of Limited Liability really exists?  Whether the example of “Bait-ul-Mall” also proves the “LIMITED LIABILITY” concept?  Whether the example of “Inheritance” under debt also proves this concept?  What is the reality of example of AL Mazoon given by the proponent?880

879 Nyazee, Imran Ahsan Khan. ISLMIC Law of Business Organization Partnerships. International Institute of ISLMIC Thought (IIIT), 2002. 880 Errico, Luca, and Mitra Farahbaksh. "ISLMIC banking: issues in prudential regulations and supervision." (1998).

344 ______ ANALYSIS OF THE PROBLEMS AND ISSUES

Now we shall try to elaborate and explain all these issues and problems one by one in deep detail so that we can understand the reality and fact of this concept.

 Whether the Islãmic law accepts and recognizes the value and concept of any type of Limited Liability?

On the plate form of Islãmic law, the liability of a free (Azad) Muslim is unlimited. On the other hand, if a Muslim is under the burden of debt and the amount of this debt is so bigger and large that he cannot pay it easily, than the creditors881 have the full right to maintain a full claim882 of all the money by taking away all types of his property in which house is not included and except the house or the place where he resides, the creditor has this right over all types of his belongings even on warm clothes. In Islãmic law, the payment of such debt is considered and thought as a sacred duty and obligation.883 Once Holy Prophet (P.B.U.H) of Islãm refused blatantly to offer the funeral prayer of a man that was under the burden of debt, but at the nick of time one of his companion came out and take the responsibility of paying the debt of the deceased companion. And then just after paying the debt the Holy Prophet (P.B.U.H) was ready to offer the funeral prayer. There is another Hadith about this issue “The greatest sin after the major sin prohibited by ALLAH Almighty, with which the servant of ALLAH will meet is that a man dies saddled with death for which he had not left the assets to pay for.” The theory and concept of absolution of debt884 which represents this type of idea of Limited liability is completely wrong under the type of this

881 Longhofer, Stanley D., and Joao AC Santos. "The paradox of priority." Financial Management (2003): 69-81. 882 Miyazaki, Anthony D. "Perceived ethicality of insurance claim fraud: do higher deductibles lead to lower ethical standards?" Journal of Business Ethics 87, no. 4 (2009): 589-598. 883 Obadare, Ebenezer. "A Sacred Duty to Resist Tyranny? Rethinking the Role of the Catholic Church in Nigeria's Struggle for Democracy." Journal of Church and State 55, no. 1 (2012): 92-112. 884 Azrae, Ahmad Nasyran, Zuryati Mohamed Yusoff, and Zainal Amin Ayub. "Living a corporate lifestyle: The application of 'body corporate' under ISLMIC institutions in Malaysia." (2009): 1-15.

345 ______theory when a person or a man becomes insolvent then the creditors have completed right over all his property except residence and, furthermore, even if the persons property does not satisfy the total and complete claim of creditors, he is free from these liabilities. Later on, he can also start again and make fool but not more people, but Islãm is not such type of religion that recognizes and accept this thought and idea and also declares it as alien concept that is forcefully incorporated in whole system of Islãmic legal system and laws [stress added]. 885

 Is there any link or relation between “Separate Legal Personality” and “Limited Liability”?

All the modern jurist and scholars who give favors to the idea of separate legal personality, they discuss and contend to clarify it that these two concepts are strongly connected or we can say on the other hand that these concepts are two faces of same coin when we disprove one concept the result will automatically be in denial and refusal of the other thought and concept. According to the famous scholar who says that the Limited liability is the logical consequence, if we accept and recognize the idea and concept of separate legal personality. We can say that the western scholars are proponent of this concept just to protect the stake of investors,886 and they have invented the idea of separate legal personality. So, in the light of discussion managed above, I can say with full confidence that if we destroy the foundations and pillars, the building will automatically collapse. It is clear that if we rebut the concept of separate legal personality in the light and on the platform of Shariah then there remains no possibilities and chances to accept and recognize the limited liability concept. 887

885 Moll, Douglas K. "Minority Oppression & (and) the Limited Liability Company: Learning (Or Not) from Close Corporation History." Wake Forest L. Rev. 40 (2005): 883. 886 Myers, Stewart C., and Nicholas S. Majluf. "Corporate financing and investment decisions when firms have information that investors do not have." Journal of financial economics 13, no. 2 (1984): 187-221. 887 Keatinge, Robert R., Larry E. Ribstein, Susan Pace Hamill, Michael L. Gravelle, and Sharon Connaughton. "The Limited Liability Company: A Study of the Emerging Entity." The Business Lawyer (1992): 375-460.

346 ______ Whether the example of “WAQF” given by the proponent really shows that the concept of Limited Liability really exists?

People who are in favor of this concept, furnish the example of Waqf.888 They say that Waqf is legal and religious institution where a person dedicates and hands over some of his properties for a religious purpose or for charitable object. When a person declared his property as Waqf, no longer it remains in the ownership of the dedicator or donor. All the beneficiaries of a Waqf889 can benefit themselves from the corpus and proceed after dedicated property, but really, they are not the owner of this property. Its ownership vests in ALLAH Almighty alone. After the discussion of the example of Waqf the scholars reaffirm and asserts that the property of Waqf is treated and dealt as the legal entity very same like a natural person. They further say when a property is bought with the income of Waqf it does not come under the part of the Waqf because this property is owned by Waqf. Now the reality is this that a person should be existed who is called “Waaqif”, because he is the person who dedicates and hands over his income and property and also gives this permission and direction according to that the income of Waqf shall be used. As far the Shariah law is concerned, it is very simple and clear on this issue and it says the property that is purchased with the money and income of the Waqf is not considered to become Waqf itself rather it becomes the part of the Waqf that will be used and run according to the directions of the Waaqif.890 Now the very important question arises in the mind that if the Waqf has separate position and condition than that who is the owner of it now it is already explained that ALLAH is the real owner of this institution and ALLAH is not some factious thing. In fact, the only reality in this world is ALLAH. There are some concepts and statements of

888 Kuran, Timur. "The provision of public goods under ISLMIC law: Origins, impact, and limitations of the waqf system." Law and Society Review (2001): 841- 898. 889 Ahmed, Habib. "Waqf-based microfinance: Realizing the social role of ISLMIC finance." World Bank (2007). 890 Gaudiosi, Monica M. "Influence of the ISLMIC Law of Waqf on the Development of the Trust in England: The Case of Merton College." U. Pa. L. Rev. 136 (1987): 1231.

347 ______Fuqaha’891 with the help of those we can easily understand the meaning of ownership of Waqf. “Abu Yousaf and Muhammad892 said that Waqf in the Shariah is the retention of an object (or property) in the legal category of it being in the ownership of ALLAH TA’LA in such a way that the benefit (of the Waqf asset) reaches the servants (of ALLAH). Thus, the ownership of the Waqf terminates and passes to ALLAH TA’ LA. It is therefore absolute. It cannot be sold, nor pawned nor inherited, the (Waqf) property is the Haq of ALLAH TA’ LA.” Now from all the statements mentioned above it can easily be construed that ALLAH is the sole owner of this Waqf property and the human act and play a role as a guardian over this property so that the income can be in a proper and best way. Now if we examine and research the Waqf with perspective that it also has limited liability than it will again be wrong because the Waqf property which is considered a tangible asset, but not a piece of paper, does not have shareholder from whom it has borrowed money which constitutes its capital. On the other hand, neither its creditors who could thwart by some limited liability principle. Now it is clear if the manager of the Waqf receives or take some debt from other person for upkeeping of the Waqf property than the creditor is not stopped or restricted under the veil of limited liability, but instead the owner has permitted the creditors that they can recover their debt from the income of Waqf. Now from the detailed discussion managed above it is easily understood that the example of Waqf is not a proof that it has limited liability. 893

 Whether the example of “Bait-al-Mall” also proves that “LIMITED LIABILITY” concept?

Second example has been given in this field by the people who believe and argue that such idea and concept does exist and has its value that is called

891 At-Taweel, Mohammed Sami Saleh. "Significance of Conjunctions and the Impact Thereby on Differences Muslim Scholars (Foqaha)." (2009). 892 Mandaville, Jon E. "Usurious piety: The cash waqf controversy in the Ottoman Empire." International Journal of Middle East Studies 10, no. 3 (1979): 289-308. 893 Kuran, Timur. "The absence of the corporation in ISLMIC law: origins and persistence." The American Journal of Comparative Law 53, no. 4 (2005): 785- 834.

348 ______Bait-ul-Mall. This legal institution (Bait-al-Mall)894 is also considered as a state treasury. Here treasury mean that there are so many valets and boxes that the government uses it as a store for keeping various or different types of its fund that is used for the welfare of the state as expenditure. It is considered and assumed by the modern type of scholar that all types of citizens have their rights the Bait-al-Mall, but no one of them can say or claim that it is his ownership. From this point of proposition, the scholar gives the argument that the Bait-al-Mall also enjoy the legal entity but really it is completely and totally wrong because Muslims Caliph works and acts of the guardian of the Bait-al-Mall and spend and consumes this fund according to the commandment and order of ALLAH ALMIGHTY. There are different funds in the Bait-al-Mall which will be extended and expanded in different and various ways, but on the other hand if the funds are consumed or used erroneously or in the shape of fraudulently then nobody can sue the Caliph. But in spite of this the individual and every person can exercise the right to go in the court and implement and enforce the direction the money and funds of the Bait-al-Mall should be consumed in the proper and right manner. This is also a fact on the other side, if the Caliph is using the fund from the Bait- al-Mall in a bad way or uses for personal benefit in this situation he is not free and away from the rules and laws and he can be sued urgently in the court without fail. This is the power of Bait-al-Mall that it can take and receive the lone from other person when the money and level of the fund is going very slow in valets and boxes, now in this situation the creditors keep the right to recover and get their money from Bait-al-Mall or from the side of government they can also deposit their demand for this. 895

894 Sakai, Minako. "Growing together in partnership: Women's views of the business practices of an ISLMIC Savings and Credit Cooperative (Baitul Maal wat Tamwil) in Central Java, Indonesia." In Women's Studies International Forum, vol. 33, no. 4, pp. 412-421. Pergamon, 2010. 895 Junaidi, Ebi, and Putri Dini Rizkiyah. "Does contract type influence the Zakat, Infaq and Shadaqah donation of ISLMIC Microfinance customers? Case study of Baitul Maal Wat Tamwil Beringharjo, Yogyakarta, Indonesia." In 8th International Conference on ISLMIC Economics and Finance. 2011.

349 ______ Whether the example of “Inheritance” under debt also proves this concept? At the point when this illustration is given a researcher of Pakistan portrays that, "As per the Jurist this property is neither claimed by the expired, on the grounds that he is not any more alive, nor is it possessed by his beneficiaries, for the obligations on the perished have a special directly finished the property when contrasted with the privileges of the beneficiaries. It isn't possessed by the loan bosses, in light of the fact that the settlement has not yet occurred. Being property of no one, it has it on presence and it can be named a legitimate substance. The beneficiaries of the perished or his assigned agent care for the property as chiefs, however they are not the proprietor.”896 Now the conclusion on this point of the scholar is this that it is totally wrong and only the part which called correct is that part of the statement “The heirs of the deceased or his nominated executor will look after the property as managers.” But if we speak about the position of the ownership of the person and his property there are two views and opinions. First opinion “The estate after death, prior to division, remains in the “hukm” of the property of the “Murith” (the deceased from home the heirs inherit).” And on the other hand, the other opinion is this that the ownership of the heirs is established and managed and also confirmed and promoted. Simultaneously with the death of the Murith. The wording and the statement of the Faqih is the following, “the right of the heirs is confirmed in the assets of the Murith from the inception of the (deceased’s) illness (Maradh-ul-Maut), hence he (The deceased is stopped from acting in two thirds’ (of his estate).” The Fuqaha’ do state that such type of ownership is devolve on to something but they are not saying so that the such type of property is ownerless. Giving the example of inheritance keeping under the debt, all the modern scholars establishes and furnishes that such type of property is ownerless and accepted as separate legal entity, so in other words it is also called limited liability. The meaning of this thing is so that any kind of creditor does not keep any chance to claim such type of their debt, but on the other side Islãm

896 Chaudhry, Zainab. "The Myth of Misogyny: A Reanalysis of Women's Inheritance in ISLMIC Law." Alb. L. Rev. 61 (1997): 511.

350 ______does not recognize this idea and concept and also explains that such type of debt devolves in to the Murith or towards the legal heirs. Such type of creditors keeps a claim over such type of property because their claim and demand arise at that time when such owner was alive but after his death this thing does not dissolve such right and they can also recover their debt. But if the heirs managed the distribution of the property without returning back the lone then in such condition this kind of act is not Batil,897 however if and when the creditors come to the side of heirs in this regard they are bound to repay and return the debt. There is some condition on the other side that when the creditors have definitely forgotten their debt or they are living in such place that is very far that the news of death is not surely reached near to them and the heirs have completely distributed the property proportionately, in this situation when it came and appear into the knowledge of the creditors then the heirs are bound to return the debt. So, now keeping in view the above discussion it can easily be stated that the inheritance under such debt do not keep separate entity, hence limited liability idea is not attracted, because under the teachings of Islãm the absolution of such debt theory is not reasonable and acceptable. The person that was under the burden of debt and passes away by living such property then this type of debt will be recovered at every cost from his property. 898  What is the reality of example of AL Mazoon given by the proponent?

A very popular and famous example is given by the proponent and supporter of the opinion of Abd-al-Mazoon.899 The supporters of this concept contents and discuss that the example of this type shows and explains that the idea of limited liability is itself existed and accepted in Islãm a very long time ago. Now-a-days what is considered by the concept of Abd-al-Mazoon, we can

897 Zandi, Gholamreza, Noraini Mohd Ariffin, and Alireza Shahabi. "Some issues on Murabahah practices in Iran and Malaysian ISLMIC banks." African Journal of Business Management 6, no. 24 (2012): 7066. 898 Loscalzo, Melissa L., Denise LM Goh, Bart Loeys, Kathleen C. Kent, Philip J. Spevak, and Harry C. Dietz. "Familial thoracic aortic dilation and bicommissural aortic valve: a prospective analysis of natural history and inheritance." American journal of medical genetics Part A 143, no. 17 (2007): 1960-1967. 899 Fuess, Albrecht, and Jan-Peter Hartung, eds. Court cultures in the Muslim world: seventh to nineteenth centuries. Routledge, 2014.

351 ______easily understand by quoting the following statement. The next point will also be cleared whether this example proves it existence of limited liability or not.900

"The slaves of those days were of two sorts. There was another sort of slaves who were permitted by their lords to exchange. A slave of this kind was called "Abd-e-Ma'ethoon".901 The underlying capital with the end goal of exchange was given to such a slave by his lord, however he was allowed to go into every single business exchange. The capital contributed by him absolutely has a place with his lord. The pay would likewise vest in him, and whatever the slave earned would go to the ace as his select property. In the event that over the span of exchange, the slave caused obligations, the same would be set of by the trade and stock present out the hands of the slave. In any case, if the measure of such money and stock would not be adequate to set of the considerable number of obligations, the loan boss had a privilege to offer the slave and settle their cases out of his cost. In any case, if their cases would not be fulfilled even subsequent to offering the slave, and the slave would pass on in that condition of in debtedness, the loan bosses couldn't approach his lord for whatever is left of their cases. Here the ace was really the proprietor of the entire business, the slave being only a delegate instrument to complete the business the slave claimed nothing from the business. In any case, the risk of the ace was constrained to the capital he has contributed including the estimation of the slave." 902

In this example, there is no special proof of the separate entity and for the principle of limited liability. Sight could not be lost from the fact and seen that the scholar has presented the principles and rules of limited liability with its consequence of automatic absolution of debt as the logical effect of such acceptance of the Juristical person. Without the existence of separate legal

900 Sayadi, Saeed, Azam Shafiee, Mohammad Javad Shahsavari, and Saeed Sayadi. "The Significance of Religious points in the Justice of Organisations." 901 Deffune, Gláucia, and Emerson Galvani. "Determinação do balanço hídrico de Maringá-PR: 1976-1992." Boletim de Geografia 12, no. 1: 28-71. 902 Grad, Frank P. "A Legislative History of the Comprehensive Environmental Response, Compensation and Liability (Superfund) Act of 1980." Colum. J. Envtl. L. 8 (1982): 1.

352 ______personality, there is no such basis for the principle of “Limited Liability.” In fact, such concept which is known as separate personality was especially introduced for such principle of limited liability. Now if we speak about the separate entity thing, such concept is totally irrelevant in this example because both the person namely the master and the slave are considered as human beings, and they are not considered some airy for non-existence things. Now as far as the notion of limited liability is concern, it can be stated again that such type of thing does not take place in such case. Why, because the original and genuine trader is Abd-al-Mazoon not the master, he is one of those who incurred debt, now all the creditors keep this right to recover their debt from the side of slaves even by the process of selling that slave or the creditors have the right to compel the slave to work for them until and unless all the types of debts are not cleared. They can also have the right to sell the salve to compensate their debt, but they cannot come and appear before master for the rest and left of their debt which is unable and impossible to recover from the slave. However, in this case the master is only responsible and answerable to the extent of the investment and the price of the slave beyond that he cannot be persuaded to pay at any cost. So, now it is clear that it is not because of the limited liability as the modern scholars says but it is really because of the “Taukeel”903 agency link which exists between master and slave in connection to the creditor or seller. the duty of payment is not considered the responsibility of the “Muakkil” (The principle), who had the right to appoint the “Wakeel” (agent).904 About this point, the Shariah narrates this principle as the following:

“the Huqooq (rights and obligations) of every transaction the wakeel relates to himself, e.g. selling, leasing, relate to the wakeel not with the Muakkil (the

903 Masood, Nausheen. "A Review of: “Man and the Universe: An ISLMIC Perspective” by Mostafa al-Badawi. Wakeel Books, 2002, revised and expanded edition, 162 pages, $14.95." (2006): 97-100. 904 Sallie, Sheikh Abdurraghiem. The book on Muslim marriage. ISLMIC Book Service, 2001.

353 ______principle). The wakeel is the actual transactor (Aaqid) in reality. Since he is the actual transactor, the Huqooq of the transaction apply to him.” 905

In another place, the next statement follows:

“He (the wakeel) is the transactor (or contractor), hence, the Huqooq (obligations) relate to him.” 906

The opponents of this concept and theory apply and use the rules of “Taukeel” in this example and argues that the slave was appointed and was given duty by the master to handle business on his behalf as an agent and that is why that agent is responsible for the debts before third person. The third person have the right to recover it from that agent appointed by the master, whatever he has in his hand in the shape of cash but if he is not able to recover then right of the creditors or the third party can be extended in “Qiyaamah”. But in this situation, he is not free from this duty; on the other hand, the master is actually responsible only to the amount of investment according to the rules which are applied on the Muakkil. Now it is also cleared that the principle of Taukeel (agency) is not fixed or confined only to his specific example of “Abd-al-Ma’thoon”. The very same principle is used and it also governs a “Shirkat”907 (partnership) and enterprise as wel l. In the type of partnership business for example as “Shirkat-e-Anaan”908 and “Shirkat-e- Wujooh”, 909the creditors have the right to demand the payment and also can peruse the actual partner who had transacted really and also had incurred the debt. In such type of Shirkat venture, each partner is called the wakeel910

905 Usmani, Muhammad Taqi. "The Principle of Limited Liability." Meezan Bank's (2002). 906 Usmani, Maulana Taqi. "Principles of Shariah governing ISLMIC investment funds." ISLMIC Mutual Funds as Faith-Based Funds in a Socially Responsible Context (2007). 907 Sarker, Md Abdul Awal. "ISLMIC business contracts, agency problem and the theory of the ISLMIC firm." International Journal of ISLMIC Financial Services 1, no. 2 (1999): 12-28. 908 Mughal, Justice R. Dr, and Munir Ahmad. "ISLMIC Concept of Partnership." (2011). 909 Usmani, Muhammad Taqi. "The concept of musharakah and its application as an ISLMIC method of financing." Arab Law Quarterly 14, no. 3 (1999): 203-220. 910 Archer, Simon, and Rifaat Ahmed Abdel Karim. "Profit-sharing investment accounts in ISLMIC banks: Regulatory problems and possible solutions." Journal of Banking Regulation 10, no. 4 (2009): 300-306.

354 ______of the other partner, but not the kafeel.911 Now in this example the Huqooq of the “Aqd”912 can only apply the transacting partner. This situation is considered very important in the Hanafi school of thought913 to discuss and argue this example. The fuqaha’ of the Hanafi school of thought states that, “If they (the creditors) wish, they may pursue the Abd (Abd-al-Ma’thoon) for the entire debt because the factor (or reason) of the obligation (of the debt) immerges from him in reality, and that is the transaction. And if after the Abd has been sold by the (creditors), there remains unsettled debt, this cannot be demanded from the master because there is no debt on him. The slave has to be persuaded after his emancipation to settle the debt because the whole of the debt is his liability.” 914

After the long and enough discussion and explanation, we can argue and say that the western concept and idea of “limited liability” is not attracted in this example and the view and thought that are held and kept by the modern scholars is totally and completely wrong and false or we can say with full confidence and bravery that it is totally against the basic principles and thought of Shariah.

 CONCLUSION AND FINDINGS

In Islãm, the system of “Shirka” is working and existing now-a-days and it is also according to my humble opinion, is enough and it can be used in a larger and bigger commercial level if we want to regulate it on the golden principle and rules of Shariah. And furthermore, there is no need and capacity to include and insert the concept and idea of limited liability in our legal system. In Shariah of Islãm there is a long and strong legal requirement that the both parties of the transaction must be human being at every cost. They must have the ability to understand and have the aspirations and desires to fulfil

911 Archer, Simon, and Rifaat Ahmed Abdel Karim. "Profit-sharing investment accounts in ISLMIC banks: Regulatory problems and possible solutions." Journal of Banking Regulation 10, no. 4 (2009): 300-306. 912 Mukhtar, Ghadah Fu'ad Majid. "Huquq Al-Marid Fi'Aqd Al-'Ilaj Al-Tibbi Fi Al- Qanun Al-Madani, Dirasah Muqaranah." (2011). 913 Meron, Ya'akov. "The Development of Legal Thought in Hanafi Texts." Studia ISLMICa 30 (1969): 73-118. 914 Rider, Mark, and Mark Rider. External debt and liabilities of industrial countries. Reserve Bank of Australia, 1994.

355 ______their duties, responsibilities and obligation and with this they should also know the consequences and results of the breach of any transaction. Now it is clear that it is just like a stone which is accepted and considered as a God in some religions. But in our Islãm, that is the complete code of life, there is no room for such situation in concept, idea and thought of limited liability. The findings on the issues discussed above are as follows:

 Firstly, the concept of limited liability is not known in Islãmic literature915 because Islãm and Shariah916 says this point that a person is liable till the time of his death and even if after the death of a person the debt will be recovered from him on the day judgement (day of Qiyaamah) at every cost.  Both of the ideas and concepts i.e. “separate legal personality” and “Limited liability” are connected and used in the western legal system, but Islãm rejects both the concepts and declared as invalid.  The Waqf, is the property that is dedicated by any human and the ownership and that property is called the property of ALLAH ALMIGHTY and the human being acts and works just as supervisor over it. The income of Waqf917 cannot be obtained and received from the public because it incurs some debt, the creditors can recover it from incomes of Waqf.  Bait-al-Mall is called the department of the Islãmic government which is controlled and managed by the Caliph. If the Caliph misappropriate the income of the Bait-al-Mall, he is really liable to the public in the office of court. If Bait-al-Mall obtains some debt from some person in case of deficiencies in the funds available in the Bail-ul-Mall, this debt is repaid to the person, on the nonpayment of the debt, the creditors have the right to enforce by filing a petition in a court.  When a person passes away and crosses the sticks and his property is not still distributed among all his heirs then it does not really mean that the

915 Roscoe, Will, and Stephen O. Murray, eds. ISLMIC homosexualities: Culture, history, and literature. NYU Press, 1997. 916 Khan, Mohammad Hameedullah. The Schools of ISLMIC Jurisprudence: A Comparative Study. Kitab Bhavan, 1991. 917 Harun, Rabitah, Zuraidah Mohamed Isa, and Norhidayah Ali. "Preliminary findings on Waqf management practices among Selected Muslim Countries." In International Conference on Economics Marketing and Management, Hongkong, pp. 5-7. 2012.

356 ______property of the deceased belongs to no one rather the such right of heirs establishes and manages once the mourtih918 is dead. And if such type of property is found under the debt and this property is already distributed among the heirs then it does not give and constitute the right of the creditors 919is abolished but in Islãm they can still claim it from the heirs.  The precedent and example of “Abd-al-Mazoon” does not give the proof in favor of the idea of limited liability because the rules and regulations “Taukeel” are used applied and only that person and individual who actually and really transact with other is only responsible.920 5.3.6 SOME BASIC DIFFERENCES BETWEEN NATURAL PERSON & LEGAL PERSON:

After a long discussion upon legal person and natural person, some toothsome, knowledgeable, considerable, copasetic, and hunky-dory differences are elucidated in the deduction. The epitome of the differences is as in the following: a) NATURAL PERSON  A natural person is really supposed a human being.  He has some characteristics of the power of some thought, speech and also choice.  A natural person is considered as real and living person too.  Slaves were also supposed natural persons in old ages.  The layman does not recognize idiot, company, corporation and idol etc. as persons.  The only natural persons are called really human beings.  He is also called a legal person.

918 Wan Noraini binti Mohd Salim. "The Principles of Mirath in Islam and Its Application in the Administration and Distribution of Muslim Intestate Estates in Peninsular Malaysia with Special Reference to the Group Settlement Land." PhD diss., International ISLMIC University Malaysia, 1993. 919 Rogers, James Steven. "The Impairment of Secured Creditors' Rights in Reorganization: A Study of the Relationship Between the Fifth Amendment and the Bankruptcy Clause." Harvard Law Review (1983): 973-1031. 920 Qureshi, Rashid Ahmed, and Syed Mir Muhammad Shah. "The legitimacy of Limited Liability in Islam."

357 ______ Natural persons can perform their functions and also can perform the function of legal persons.  Man is called the only natural person.  There is no such type of division in natural person.  Natural person can live for a limited and fixed period i.e. he cannot live more than 150 years. 921 b) LEGAL PERSON  A legal person is called the being or real or imaginary.  A legal person is anyone who is considered of capable of right or duties according to the law.  Legal persons are also considered and termed “Juristic”, “Fictitious”, “Moral” or “Artificial”.  In older law “slaves” were not accepted and recognized as person.  In law the idiots, dead man, unborn persons, corporations, companies, idols etc. are treated and considered as legal persons.  There are several and different categories of legal person recognized and accepted by law.  “Although all legal personality involves personification, the converse is not true.”  The legal persons perform their functions and duties only through natural persons.  There are different and several varieties if legal persons such as corporations, companies, universities, president, societies, municipalities and gramapanchayats, etc.  There are two classes of corporations, corporation sole and corporation aggregate.  The legal person can live more than 150 years. For example (a) the post of “American president” is a corporation, it was created at about 300 years ago and still it is also continuing and working. (b) “East India Company” was also established in 16th century in London and now it is still in existence and also working.922

921 Hart, Herbert LA. "Are there any natural rights?" The Philosophical Review 64, no. 2 (1955): 175-191. 922 Finnis, John. Natural law and natural rights. Oxford University Press, 2011.

358 ______5.4 DIFFERENT ASPECTS OF FRANCHISE & THEIR ISLÃMIC VALIDATION 5.4.1 PROLUSION

In this section, a knowledgeable and comprehensive discussion has been furnished on different aspects of real and ideal tools and instruments of Islãmic business and finance with comparison to the mechanism of franchise business. Some efforts will be exerted to prove the Islãmic validation of franchise business in the light of Islãmic Jurisprudence (Islãmic FIQH/Islãmic Law/Shariah).923 Following section of this thesis is meant for discussion upon Islãmic Perspective on the franchise business, which is the subject- matter of my thesis, especially of the chapter, under discussion.

With the trend of increasing expansion of all the global Islãmic finance especially in industry and also beyond its traditional control and also strong- holds, there is a slow and gradual increase especially in the global franchising opportunities and options in Islãmic finance. There should be arranged and managed a deep research on franchise business and its relevant factors also. There is a tremendous growth and increase in the franchise industry for many hours. In this research, it has been adopted a qualitative legal method to analyze the relevant and concern legislations and it would also discuss the Shariah rules that to what extent they are applicable to Shariah-Compliant Business of Islãmic Financial Institutions. This study will find that there is no special and specific framework for Shariah Compliant Business especially including Islãmic Finance Business. The purpose of this study is to examine the vital importance of the disputed management in all the cases of both kinds near and outright SUKUK defaults. So, with the case studies, these lines will examine all such cases about SUKUK defaults especially.924 This study will also show that how the debt restructuring can play a very important rule as a dispute.

923 Auda, Jasser. Maqasid al-Shariah as philosophy of ISLMIC law: a systems approach. International Institute of ISLMIC Thought (IIIT), 2008. 924 Khnifer, Mohammed. "When sukuk default–Asset priority of certificate-holder’s vis a vis creditor." Browser Download This Paper (2010).

359 ______With the concept of increasing significance of Islãmic Financial services in the market or global financial system, there is a special paradigm shift to sustainable dispute resolution practices for securing the ongoing business relationship. Some legal experts are also doing research and exploring that how the legal activities are doing work in franchise business and how can this system can accept the challenges arising out of the world. For this purpose, struggle has been made about the SUKUK structuring and its complexities. The method and process about FATWA925 has been examined. Then the people tried to argue about the effect on customer organization and trust in Islãmic finance products and the need for effective consumer production regulations in the Islãmic finance industry and also other business of franchising. The methodology adopted for this purpose is qualitative research. In short, we want to make and formulate the franchise business according to Islãmic law of Shariah. For this purpose, we will have to do some herculin’s tasks and also to cross over some difficult, delicate, and dangerous stages, to reach the destination of these objectives. The arrangements and organizations of the stages of such objects are stated in the following explanations.

Now after a long and lengthy discussion about the Islãmic perspective on franchise business, there is a need to identify and to explain the real and ideal Islãmic tools and instruments of business and finance. So, in light of the explanation and details of these tools and instruments,926 it may be easy to understand the validation of different aspects of the franchise business in accordance with the Islãmic law and Shariah. Those Islãmic tools and instruments are discussed in the following:

925 Gillespie, Piers. "Current issues in Indonesian Islam: analysing the 2005 Council of Indonesian Ulama Fatwa No. 7 opposing pluralism, liberalism and secularism." Journal of ISLMIC Studies18, no. 2 (2007): 202-240. 926 Hammour, Mohamad, Larry Kershner, and Harvey Weiner. "Computer-system for Shariah-compliant computer-aided method for securing a Shariah-compliant credit enhancement." U.S. Patent Application 10/680,474, filed October 7, 2003.

360 ______5.4.2 THE REAL AND THE IDEAL TOOLS AND INSRUMENTS OF ISLÃMIC FINANCE AND FRANCHISE BUSINESS

Here, it has been dared to establish such a school of technical and typical knowledge in which the Islãmic meaningful and historical tools and flexible and tractable instruments of Islãmic law, which are used as modes of Islãmic Banking and Finance, will be discussed and argued in detail. On the other side, the elements of the franchise business will be collected and gathered in a laboratory in the department of Franchise Business to examine and analyze the satisfaction of a reader to the results of hypothesis.927 After the establishment of such school on the ground of such knowledge, a comprehensive and knowledgeable epitome of the critical, analytical, economical, and also Islãmic phenomenon and mechanism will be entertained, and at the end, the list of final results will be displayed on the notice board of this school, so that every needy reader and researcher of this field may know the fact and reality without wasting time. The item wise list of such instruments and elements are being furnished in the following.

5.4.3 MUSHÃRAKAH

"MUSHÃRAKAH" is an expression of Arabic dialect. Exacting importance of this word is "Sharing" however in that unique circumstance and feeling of business and furthermore exchange and back, the significance of this word is "A joint undertaking in which every one of the accomplices share and disperse the benefit or loss of this joint wander." It is called and considered the perfect and genuine option for the term the intrigue base financing alongside expansive consequences for both side i.e. generation and appropriation. MUSHÃRAKAH is a term that is as often as possible alluded to in the sense and setting of Islãmic standards, devices and method of Islãmic financing. The meaning of the term of this word is almost no and constrained then the first term "Shirkah". It is all the more normally and frequently utilized as a part of the Islãmic Jurisprudence. With the end goal

927 Stamovlasis, Dimitrios. "The nonlinear dynamical hypothesis in science education problem solving: A catastrophe theory approach." Nonlinear Dynamics, Psychology and Life Science 10, no. 1 (2006): 37-70.

361 ______of leeway, clearness and clarification in the essential considerations and ideas, it is relevant to clarify and explain the significance of each term that are recognize and unique in relation to the next.

Truth be told, "Shirkah" having the importance of "sharing" and in the wording of Islãmic law and Islãmic FIQH, it can be isolated into two primary sorts: 928

 Shirkat-al-Milk 929

The importance of this term is "joint responsibility for or more individuals in a specific and particular property" and this kind and sort of "Shirkah" is viewed as appearing in two changed process and ways: Sometimes it comes into operation at the correct alternative of the gatherings. For instance: if at least two people or people buy or purchase a thing or a hardware, it will be proprietorship mutually by the them two and furthermore the connection between them with respect association with that property is called Shirkat- al-drain. Here is the point that this relationship has gone into the presence at their own choice and will since they themselves chose to choose and buy the worry hardware mutually.

Be that as it may, now and again, this sort of Shirkah entered naturally with no choice and activity of the gathering. For instance: after the passing of an individual or individual, every one of the beneficiaries acquire every one of his properties consequently come in the responsibility for beneficiaries.

928 Meera, Mydin, Ahamed Kameel, and Dzuljastri Abdul Razak. "ISLMIC home financing through Musharakah Mutanaqisah and Al-Bay’Bithaman Ajil contracts: A comparative analysis." Review of ISLMIC Economics 9, no. 2 (2005): 5-30. 929 Sadique, Muhammad Abdurrahman. Essentials of Musharakah and Mudarabah: ISLMIC texts on theory of partnership. IIUM Press, 2009.

362 ______ Shirkat-ul-Aqd930

This is the second kind of Shirkah and the importance of this term is "an organization affected by a shared contract." In short with the end goal of curtness it can be interpreted as "joint business undertaking"

Shirkat-ul-Aqd can be further divided into three kinds:

 SHIRKAT-UL-AMWAL 931

In this sort of Shirkah every one of the financial specialists and every one of the accomplices put some capital into the business undertaking.

 SHIRKAT-UL-A’MAL OR SIRKAT-UT-EAQABBUL OR SHIRKAT-US-SANA’I’ OR SHIRKAT-UL-ABDAN932 In this kind, every one of the accomplices all in all and mutually embrace to give and render a few administrations for every one of their clients. As per the assention they appropriate the expense as indicated by the proportion on which they are concurred and this expense is charged from the clients. This sort of Shirkah is additionally called Sirkat-ut-Eaqabbul or Shirkat-us- Sana'I' or Shirkat-ul-Abdan.  SHIRKAT-UL-AQD OR SHIRKAT-UL-WUJOOH933 In this kind, every one of the accomplices don't contribute even little cash. In any case, every one of the accomplices buy the products and things on a conceded cost and offer every one of the things at the spot. The benefit is dispersed by the proportion settled upon. Every one of the sorts of Shirkah

930 Sadique, Muhammad Abdurrahman. "FINANCING MICRO AND MEDIUM SIZED ENTERPRISES THROUGH DECREASING PARTNERSHIP (MUSHĀRAKAH MUTANĀQISAH): REFINING SHARĪ‛ AH AND BANKING ASPECTS FOR ENHANCED APPLICABILITY." ISLMIC Finance for Micro and Medium Enterprises (2008): 53. 931 Jalil, Abdullaah, and Hisham Sabri. "ISLMIC Equity Financing for SMEs Development." Kolej Universiti Islam Malaysia, 2007. 932 Tahir, Sayyid, and Atiquzzafar Khan. "ISLMIC Banking: Why Not Mushārakah Financing?" Journal of ISLMIC Business and Management Vol 6, no. 1 (2016). 933 Hamzah, Ahmad Aizuddin, Farah Shazwani Ruzaiman, and Iftekhar Amin Chowdhury. "THE CONTRACT OF MUDARABAH AND MUSYARAKAH IN ISLMIC COMMERCIAL LAW: A COMPARATIVE ANALYSIS." All rights reserved. No part of this publication may be reproduced, distributed, stored in a database or retrieval system, or transmitted, in any form or by any means, electronics, mechanical, graphic, recording or otherwise, without the prior written permission of Universiti Malaysia Sabah, except as permitted by Act 332, Malaysian Copyright Act of 1987. Permission of rights is subjected to royalty or honorarium payment. 7 (2013): 1054.

363 ______specified above are known as the sorts of Shirkah and the implications of different kinds in the wording in the Islãmic FIQH is "Sharing". Presently it is apparent and clear from the exchange that the term Shirkah has a significantly more extensive sense and much clearness as contrast with the term MUSHÃRAKAH. To put it plainly, it can be imagined that the term Musharkah is substantially more important and worried with the end goal of our discourse and it is extremely practically equivalent to Shirkat-ul-Amwal. Presently, every attempt and exertion would be tried occupied to stay upon it with the clarification and the conventional idea and thought of the kind of Shirkah and after that giving a concise record of all its application to the prospect of financing in the advanced idea. 934 a) THE BASIC RULES OF MUSHÃRAKAH  MUSHÃRAKAH or Shirkat-ul-Amwal is such a relationship, to the point that is built up by the gatherings with the activity of shared contract. In this way, it will abandon saying that all the fundamental elements of a substantial and unique contract must be exhibited in this kind of agreement.

Be that as it may, notwithstanding this there are some other certain fixings which are particular and impossible to miss to the idea of MUSHÃRAKAH and they are abridged in the accompanying lines: b) DISTRIBUTION OF PROFIT935  The extent of the benefit is to convey as per the assention at the season of the agreement.  The proportion of the benefit for each accomplice ought to be resolved in extent to the genuine benefit that is collected to the business and not in the extent to the first capital that is contributed by him.

934 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005. 935 Ahmed, El-Tegani A. "Distribution of profits in ISLMIC banking: a case study of Faysal ISLMIC Bank of Sudan (FIBS)." ISLMIC Economics 7, no. 1 (1995).

364 ______c) RATIO OF PROFIT936  About the proportion of the benefit a few Muslims Jurists have their sentiments with contrast that are in the accompanying:  Imam Malik and Imam Shafi'i, they say that in kind and legitimacy of MUSHÃRAKAH each accomplice must be given the benefit in the extent of the speculation.  On the opposite the Imam Ahmad say, the proportion of the benefit can be not the same as the proportion of the venture if the gatherings are concurred of their free assent.

Imam-Abu-Hanifah say, the proportion of benefit might be not the same as the proportion of interest in the typical conditions. Nonetheless, if an accomplice put ay express condition in any assention, for example, he will never work at all in sort of MUSHÃRAKAH and should likewise remain the resting accomplice all through the term of MUSHÃRAKAH, in this condition the offer of benefit won't be more than the genuine proportion of his venture. d) SHARING OF LOSS

In this association, all the Muslim Jurists are concurred and consistent on this point all the accomplice will endure the misfortune together as indicated by the first proportion of their speculation. This guideline of sharing of misfortune has been specified and expressed in the renowned Maxim:

"Benefit depends on understanding of the gatherings, yet misfortune is constantly subject to the proportion of venture" 937 e) THE NATURE OF THE CAPITAL

The vast majority of the Muslim researchers and Jurists have this feeling the capital that is put by each accomplice ought to be as fluid. In any case, there are contrasts of feeling that are in following lines.

936 Farooq, Mohammad Omar. "Partnership, equity-financing and ISLMIC finance: whither profit-loss sharing?" (2007). 937 Abdul-Rahman, Aisyah, Radziah Abdul Latif, Ruhaini Muda, and Muhammad Azmi Abdullah. "Failure and potential of profit-loss sharing contracts: A perspective of New Institutional, Economic (NIE) Theory." Pacific-Basin Finance Journal 28 (2014): 136-151.

365 ______Imam Malik says that the Liquid capital is not a condition for the validity of MUSHÃRAKAH.

Imam Shafi’I say, that the type of commodities is in two kinds.

Imam Malik says that the Liquid capital isn't a condition for the legitimacy of MUSHÃRAKAH.

Imam Abu Hanifah and Imam Ahmad Bin Hanbal they say, they have two viewpoints in this association. 1. The products of each accomplice ought to be constantly recognizable and not quite the same as the items of the other. 2. A number circumstance in the substance of MUSHÃRAKAH where every one of the accomplices need to redistribute of the offer capital of each accomplice.

Imam Shafi'i say, that the sort of products is in two sorts.

 Dhawat-ul-Amehal: it implies the wares that is demolished must be repaid with the comparative products in the amount and furthermore in quality, for example, wheat, rice and so on.  Dhawat-ul-Qeemah: it implies that the items that are not repaid with the comparable wares like the pot and so on. In this condition, he needs to pay the cost of each head of sheep or goat.

Presently after the discourse in detail, it can be deducted that the offer capital in the sort of MUSHÃRAKAH might be contributed either in the state of trade or out the shape or type of wares. What's more, in the later cases, the market estimation of the considerable number of items will decide the due offer of all the accomplice in the capital. f) MANAGEMENT OF MUSHÃRAKAH

The typical govern of MUSHÃRAKAH is this that each accomplice has same appropriate to partake in the administration and furthermore to work for it. Be that as it may, a few accomplices may concur on the condition that the administration might be completed by one of them and it is additionally chosen that no other accomplice will work for the MUSHÃRAKAH. In any case, it is mentionable point that for this situation that the resting accomplice

366 ______will be qualified for get benefit just from the cash of venture. On the opposite side, if every one of the accomplice’s consent to work together for this joint wander then the benefit will be disseminated similarly to each accomplice. 938 g) TERMINATION OF MUSHÃRAKAH

MUSHÃRAKAH can be terminated on account of the following reasons:

 Every partner has the full right to terminate and break the agreement of MUSHÃRAKAH any time after giving the notice to other partners.  If any partner dies during the time of currency of MUSHÃRAKAH then the MUSHÃRAKAH will automatically stands terminated.  If any partner of the company becomes insane or otherwise becomes incapable or unable of effecting the commercial transactions in this situation the MUSHÃRAKAH will also be terminated. 939 h) TERMINATION OF MUSHÃRAKAH WITHOUT CLOSING THE BUSINESS

In the event that anybody of the accomplices needs to end the assention of MUSHÃRAKAH, while his other accomplice or accomplices need to proceed with this business then in this circumstance the MUSHÃRAKAH understanding will be wiped out just by shared assention and on the accompanying conditions:

 By buying the offers of this accomplice.  The cost of the offer ought to be dictated by shared assent.  The living accomplice won't authorize to purchase or disseminate the benefits.

For this situation the vast majority of the conventional books of such issues of Islãmic FIQH really appear to be noiseless on such kind of question. Nonetheless, it appears there is no obstacle from the purpose of Shariah if

938 Febianto, Irawan. "Risk Management in Mudharabah And Musharakah Financing of ISLMIC Banks." (2009). 939 Yusoff, Remali, and Shaherah Abdul Malik. "THE CONTRACT OF SUKUK AL- MUSHARAKAH AND SUKUK AL-MUDHARABAH IN ISLAMC COMMERCIAL LAW: A COMPARATIVE AND APPLICATON ANALYSIS FOR WAQF."

367 ______the accomplices consent to follow up on the privilege or toward the start of MUSHÃRAKAH and it is allowed some submissively Jurists.

This condition might be in position of legitimization particularly in the cutting- edge circumstance that a large portion of the matter of such sort needs congruity for its prosperity and the circumstance of liquidation or the circumstance division at the occurrence of single accomplice just can make some unsalvageable harm the various accomplice. In this manner, in such condition it is defense and furthermore upheld by the general standard expressed by the Holy Prophet (P.P.U.H) in his popular Hadith:

حالال حرم او حراما احل شرطا اال شروطهم على املسلمون

"All the condition settled upon by the Muslims are maintained, aside from the condition which permits what is denied or denies what is legitimate."

The fundamental idea and idea of Shirkah-ul-Amwal or MUSHÃRAKAH in its unique and furthermore conventional sense are being abridged in the accompanying:

We are in a position to talk about some critical and essential issues engaged with the application to all the advanced conditions as an affirmed mode and technique for financing yet it is imperative to note and supposing it more correlated to examine these issues and issues in the wake of giving and dealing with an early because of MUDÃRABAH that is another sort and sort of Profit Sharing and furthermore regular method of financing. Along these lines, the standards and standards of business and financing in both the ways i.e. MUSHÃRAKAH and MUDÃRABAH are like each other. What's more, issues and issues that are engaged with MUSHÃRAKAH and MUDÃRABAH are entomb related, and hence it should be valuable and accommodating to examine and clarify the idea of MUDÃRABAH before setting out on these issues and issues.

368 ______i) SOME COMMENTS ABOUT THE FRANCHISE BUSINESS

After giving the details about Shirkah, a researcher will be able to say some knowledgeable points in connection with the comparison of Shirkah and Franchise Business. All kinds of Shirkah, its meaning, its procedure, working method, and all the mechanism are same as of the franchise business. The franchisor, the franchisee, the FDD, the agreement, and written terms and conditions etc. all are same in working as the Shirkah machinery. The basic rules of MUSHÃRAKAH, its terms and conditions, its nature, its way of distribution of profit, ratio of profit, sharing of loss, nature of the capital, its management, diminishing MUSHÃRAKAH, its way of termination, way of penalty and damages and its method of termination of its agreement without closing are nearly same in process and procedure to that of franchise business. Therefore, it is easy to say that the Shirkah business, according to MUFTI MUHAMMAD TAQI USMANI, is according to the Shariah Law. He has also discussed Shirkah in detail in his book, “AN INTRODUCTION TO THE Islãmic FINANCE.” Having an overview of this book; it seems advisable and reasonable to attach the connotation and also denotation of franchise business to the real meaning of Shirkah. 940

5.4.4 MUDÃRABAH

The inception of this word is likewise in Arabic dialect and the significance of MUDÃRABAH` is a sort of association in which just a single accomplice gives a few or more cash to other accomplice for motivation behind putting this cash in a business endeavor. The individual who gives the cash, is called "RABB-UL-MAL", while the individual who gets cash and he additionally deals with the business is called, "MUDARIB" 941

940 Belfield, Clive, Alison Bullock, Glenn Rikowski, and Hywel Thomas. "Franchising and the Funding Methodology in the FE Sector." Journal of Education and Work 13, no. 1 (2000): 25-39. 941 ABDUL RAHMAN, Abdul Rahim. "< ISLMIC Economics: Theoretical and Practical Perspectives in a Global Context> ISLMIC Microfinance: A Missing Component in ISLMIC Banking." (2007).

369 ______a) THE DIFFERENCE BETWEEN MUSHÃRAKAH AND MUDÃRABAH  The interest in MUSHÃRAKAH is originated from every one of the accomplices, while in the MUDÃRABAH just single individual give all the cash who is called `rabb-ul-mal`.  In MUSHÃRAKAH misfortune is shared by every one of the accomplices as per the proportion of their venture, while in MUDÃRABAH just single man bears this misfortune.  All the accomplices take part in the administration, while in MUDÃRABAH `rabb-ul-mal has no privilege or energy to take an interest in the administration.  The obligation of the considerable number of accomplices is typically viewed as boundless, while in MUDÃRABAH the risk of `rabb-ul-mal is confined and constrained just to his speculation.  In MUSHÃRAKAH, every one of the accomplices can get benefit as indicated by the proportion of their separate venture subsequent to stirring up their capital in a joint pool, regardless of whether the benefit isn't gathered through deals. In any case, in MUDÃRABAH, the `mudarib` can get his offer just in benefit. 942 b) BUSINESS OF THE MUDÃRABAH There two sorts of the matter of MUDÃRABAH;  Al-MUDÃRABAH al-muqayyadah (restricted MUDÃRABAH)

In this kind of business, the rabb-ul-mal specifies and determine the specific and extraordinary business. 943

 Al-MUDÃRABAH al-mutlaqah (unrestricted MUDÃRABAH);

In this sort, the rabb-ul-mal gives an open offer to the mudarib of his own will.944

942 Usmani, Muhammad Taqi. "The concept of musharakah and its application as an ISLMIC method of financing." Arab Law Quarterly 14, no. 3 (1999): 203-220. 943 Aziz, Asma, and Humauyun Abbas. "ISLMIC CONCEPT OF MUDHARABAH AND ITS PRACTICE IN ISLMIC BANKING." 944 Manzoor, Muhammad Mazhar, Muhammad Fahim, Sajid Ahmad Chauhan, Waseem Hasan Raja, and Jamshan Siddiqui. "Elimination of riba from banking by using ISLMIC

370 ______c) DISTRIBUTION OF THE PROFIT

In MUDÃRABAH, the Shariah has not settled or endorsed no specific extent for the gatherings and has left without anyone else on which they are settled upon at the season of starting. 945 d) TERMINATION OF MUDÃRABAH

The assention and the agreement of MUDÃRABAH be wiped out and ended whenever and by both of the two gatherings just by issuing the notice to each other.

In this association, the rule of Shariah is found in a well-known hadith;

"every one of the conditions settled upon by the Muslims are maintained, aside from a condition which permits what is precluded or restricts what is legal." 946 e) PROJECT FINANCING

There are two conventional technique for financing a task;

 If a solitary individual, who is known as the agent, needs to back the entire task, it goes under the MUDÃRABAH guideline.  If every one of the accomplices need to back the task, at that point it goes under the standards of MUSHÃRAKAH.947 f) DIMINISHING MUSHARKAH

The second delineation given above for diminishing MUSHÃRAKAH is the joint purchase of a taxi continue running for obtaining wage by using it as a utilized vehicle. This strategy includes the going with fixings:

financing methods." In Proc. 8th International Conference on Recent Advances in Statistics, Lahore, Pakistan, pp. 173-178. 2011. 945 Iqbal, Munawar, and David T. Llewellyn, eds. ISLMIC banking and finance: new perspectives on profit sharing and risk. Edward Elgar Publishing, 2002. 946 Ismal, Rifki. "< Special Feature" ISLMIC Finance at the Current Stage: Scopes and Issues"> How Do ISLMIC Banks Manage Liquidity Risk? An Empirical Survey on the Indonesian ISLMIC Banking Industry." (2010). 947 Bacha, Obiyathulla I. "Adapting mudarabah financing to contemporary realities: a proposed financing structure." (1997): 26-54.

371 ______ Creating joint proprietorship in a taxi as Shirkah al-Milk. As authoritatively communicated this is allowed in SHARI’AH.  MUSHÃRAKAH in the compensation made through the organizations of taxi. It is in like manner allowed as determined before in this segment.  Purchase of different units of the offer of the moneylender by the client. This is again subject to the conditions viably point by point because of House financing. In any case, there is a slight qualification between House financing and the game-plan prescribed in this second case. The taxi, when used as a utilized vehicle, consistently depreciates in an impetus after some time, along these lines, disintegration in the estimation of taxi must be recollected while choosing the cost of different units of the offer of the loan specialist.

The third instance of decreasing MUSHÃRAKAH as given above is that the loan specialist contributes 60% of the capital for driving a business of moment bits of garments, for example. This arrangement is made out of two fixings in a manner of speaking:

 In any case, the arrangement is basically a MUSHÃRAKAH whereby two accessories put different measures of capital in a joint wander. This is unmistakably acceptable subject to the conditions of MUSHÃRAKAH starting at now clarified before in this part.  Purchase of different units of the offer of the bank by the client. This may be as an alternate and self-governing certification by the client. The necessities of Shari'ah concerning this assurance are the same as elucidated by virtue of House financing with one basic difference. Here the cost of units of the loan specialist can't be settled in the assurance to purchase, in light of the fact that if the cost is settled before hand at the period of going into MUSHÃRAKAH, it will in every practical sense infer that the client has ensured the essential contributed by the operator with or without advantage, which is altogether blocked by virtue of MUSHÃRAKAH. Thusly, there are two decisions for the bank about settling the cost of his units to be gotten by the client. One decision is that he agrees to offer the units on the start of valuation of the business at the period of the purchase of each unit. If the estimation of the business has extended, the cost will be higher and in

372 ______case it has decreased the cost will be less. Such valuation may be finished according to the apparent measures through the pros, whose identity may be settled upon between the social events when the assurance is settled upon. The second option is that the bank empowers the client to pitch these units to some other individual at whatever esteem he can, yet meanwhile he offers a specific cost to the client, which implies in this way that if he finds a purchaser of that unit at a higher esteem, he may pitch it to him, yet if he needs to pitch it to the operator, the last will please to get it at the cost settled by him in advance.

Yet both these options are open as showed by the models of Shari'ah, the second decision does not have all the earmarks of being feasible for the specialist, since it would incite imbuing new assistants in the MUSHÃRAKAH which will bother the whole course of action and negate the purpose of diminishing MUSHÃRAKAH in which the loan specialist needs to recoup his money inside a predefined period. Therefore, remembering the true objective to execute the objective of diminishing MUSHÃRAKAH, simply the main decision is valuable.948 g) SOME COMMENTS ABOUT FRANCHISE BUSINESS

As during the time spent MUDÃRABAH, a man who puts his cash in some business endeavor, he is called Rabb-ul-Mall and the other individual and accomplice who gets cash for the venture he is called Mudarib and this procedure is called MUDÃRABAH. Much the same as this, in an establishment business a man who puts his cash in any business endeavor he is called franchisor and the other individual, gathering or accomplice who gets this cash or venture they are called franchisee or franchisee's and notwithstanding this the procedure and marvel on the two sides so the terms and conditions and all the composed concurrence on the two sides are same to each other. Along these lines, we can state the establishment business here and there is working simply like the procedure, business or arrangement of MUDÃRABAH. The procedure of the dispersion of the

948 Bilal, Qaisar, and Muhammad Rahim. "Diminishing Musharaka: A Mode of Financing in Interest Free Banks." Abasyn University Journal of Social Sciences 7, no. 1 (2014).

373 ______benefit is fundamentally the same as the procedure of MUDÃRABAH. The technique for end of the understanding of establishment business is much the same as the strategy for MUDÃRABAH and all now it is simple for each peruser that this shape and sort of establishment business has the similitude to the sort of MUDÃRABAH. As per Mufti Taqi Usmani who has talked about MUDÃRABAH in his book to be specific "A prologue to the Islãmic back" in detail. He has clarified every one of the terms and conditions in this book. As per the guidelines and control of Islãmic Shariah about the business that are specified in this book, it is certain that the establishment business in this sense is working as per the Islãmic Shariah till that time any of the terms and conditions might be changed that is in opposition to the principles and direction of the Islãmic Jurisprudence. 949

5.4.5 MURÃBAHAH

“MUARABAHAH”950 is, truth be told, an uncommon term utilized as a part of Islãmic `FIQH` in the feeling of a specific sort of offer and have nothing to do with the significance of `financing` in which the vast majority of the Islãmic Banks and monetary organizations are utilizing now-a-days. In the event that a vender is eager and concurred with his purchaser or buyer that he will give him a specific and particular product on a specific benefit with expansion to its cost, it is called ` MURÃBAHAH transaction`.951 The benefit might be gotten in single amount or on rate premise. Thus, the installment may likewise be conveyed at the spot or might be on any date and time settled upon. It is really, in its unique Islãmic meaning, thought about just and basically in the feeling of `Sale`. In any case, if a man needs to offer a ware on a single amount cost without minding its cost, it isn't called ` MURÃBAHAH` yet it will be named as `` MUSAWAMAH``.952 Then again, all

949 Kahf, Monzer. "ISLMIC Finance: Business as Usual." Avaliable from: http://www. monzer. kahf. com/papers/english (2005). 950 Dusuki, Asyraf Wajdi. "Commodity murabahah programme (CMP): An innovative approach to liquidity management." Journal of ISLMIC Economics, Banking and Finance 3, no. 1 (2007): 1-23. 951 Al-Meaither, Mansour A., and Chris J. Mitchell. "Extending EMV to support Murabaha transactions." In Proceedings of the 7th Nordic Workshop on Secure IT Systems (NordSec 2007), pp. 95-108. 2003. 952 Siddiqui, Shahid Hasan. "Instruments of ISLMIC banking in operation." (2008).

374 ______the Islãmic Banks and budgetary foundations are utilizing it as a method of financing now-a – days. a) SOME BASIC RULES OF SALE  The subject of the deal ought to exist at the season of offer.  The subject of the deal ought to be in the control and responsibility for dealer at the season of offer.  The subject of offer ought to be in the physical or valuable ownership at the season of offer.  The real deal ought to be moment and supreme.  The subject of offer ought to be a property of significant worth.  The subject of offer must not be a wonder such as this that is utilized just for ` HARAM purpose`, for example, pork, wine and so on.  The subject of offer ought to be known particularly and recognized to the buyer.  The conveyance of the sold thing or ware ought to be sure and beyond any doubt and should not rely upon a possibility or shot.  The sureness of the cost is extremely vital state of the legitimacy of an offer of the ware.  The deal ought to be unrestricted.953 b) BAI’-MU’AJJAL (SALE ON DEFFERED PAYMENT BASIS)

This is such kind of offer in which every one of the gatherings are conceded to this point the installment of cost should be conceded for quite a while. 954 c) CONCLUSIONS  It isn't a method of financing.  The item is its topic.  Overhead costs won't influence its exchange.  The product ought to be in possession.

953 Hassan, M. Kabir, Rasem N. Kayed, and Umar Aimhanosi Oseni. Introduction to ISLMIC banking and finance: principles and practice. Pearson Education Limited, 2013. 954 Khan, M. Akram. "Commodity exchange and stock exchange in ISLMIC economy." American Journal of ISLMIC Social Sciences 5, no. 1 (1988): 91.

375 ______ The lender should purchase the ware himself from the provider.  The lender can choose a specialist to purchase the product.  Cash and credit deals are permitted on this condition the cost ought not be expanded or diminished in late installment or prior installment.  The buyer will pay the cost instantly.  In instance of prior installment, no discount ought to be guaranteed by the customer. 955 d) SOME COMMENTS ABOUT FRANCHISE BUSINESS

As we probably are aware MURÃBAHAH is the method of Islãmic financing and all the Islãmic banks and money related establishments are utilizing this procedure in such sort of business. MURÃBAHAH in truth is a term of FIQH and this is a specific kind of offer in which a merchant guarantees to the buyer to give him particular thing or product on certain benefit with expansion to the cost. On the opposite side of establishment business, the name of this deal and process is called establishment and correspondingly if a franchisor guarantees and consents to give and give some item to his client or franchisee it is known as a similar procedure considered and acknowledged in MURÃBAHAH. In this way, along these lines in some cases the activity and process and wonder of MURÃBAHAH is utilized as a part of a same path as in the establishment business. In this way, it can be said with the assistance of contentions given in the Islãmic FIQH that occasionally the establishment business is working in various field of business simply like the matter of MURÃBAHAH. Notwithstanding this the procedure of the installment Lump whole or on the settled or time might be chosen the understanding from both the gatherings. Thusly, the essential highlights of establishment business and a few issues of establishment business money and credit deals, the utilization of loan fee as seat stamp, guarantee to the buy, securities against MURÃBAHAH value, assurance of MURÃBAHAH bargain, bounty in the event of default, No Role Over in the MURÃBAHAH, Rebate of Earlier Payment, computation of cost in MURÃBAHAH, topic of MURÃBAHAH, rescheduling of installments in MURÃBAHAH and

955 Hassan, M. Kabir, Rasem N. Kayed, and Umar Aimhanosi Oseni. Introduction to ISLMIC banking and finance: principles and practice. Pearson Education Limited, 2013.

376 ______securitization of MURÃBAHAH every one of these components are working simply like a machine during the time spent establishment business moreover. In this way, we can state as per the Islãmic books and Islãmic information that establishment business has the Islãmic touch and Islãmic route in his procedure. 956

5.4.6 IJÃRAH (LEASING) “IJÃRAH”957 might be characterized as a term of Islãmic FIQH, and lexically, the significance of this term is `to give something on lease. ` In the field of Islãmic Jurisprudence, IJÃRAH is utilized for two unique conditions and circumstances. In the principal circumstance and place, the importance of the term is, ` to utilize the administrations of a man on compensation given to him as a thought for his procured administrations. ` in this sense, the business is called, ` MUSTAJIR`, 958 while the representative is called, `AJIR. `959 It has connection with the usufructs of the benefits 960and furthermore properties and having nothing to do with the administrations of people. The significance of `IJÃRAH` in this sense is, ` to exchange the usufruct of the specific property to someone else in return for a lease asserted for him. ` In this sense Ijara is closely resembling the English expression, `Leasing`. Here in this importance the lessor is called ` MUJIR` while the tenant is called ` MUSTAJIR` and the lease that is payable to the lessor is called ` UJRAH`. 961

956 Taylor, J. Michael. "ISLMIC BANKING‐THE FEASIBILITY OF ESTABLISHING AN ISLMIC BANK IN THE UNITED STATES." American Business Law Journal 40, no. 2 (2002): 385-414. 957 Shariff, Ros Aniza Mohd, and Abdul Rahim Abdul Rahman. "An exploratory study of Ijarah accounting practices in Malaysian financial institutions." International Journal of ISLMIC Financial Services 5, no. 3 (2003): 1-15. 958 Naidu, N. Y. "Tribal Revolt in Parvatipuram Agency." Economic and Political Weekly (1972): 2337-2344. .(2012) ".(اجارة) Mughal, Justice R. Dr, and Munir Ahmad. "What is Ijarah 959 960 Welch, W. P. "The political feasibility of full ownership property rights: The cases of pollution and fisheries." Policy Sciences 16, no. 2 (1983): 165-180. 961 Hamid, Mohamad Abdul, and Mohd Sukki Othman. "A study on the level of knowledge and understanding among Muslims towards the concepts, Arabic and Shariah terms in ISLMIC Insurance (takaful)." European Journal of social sciences 10, no. 3 (2009): 468- 478.

377 ______a) BASIC RULES OF LEASING  Leasing is an agreement.  The subject of rent ought to be profitable utilize.  The corpus of the rented property stays in the responsibility for vender.  Liabilities about properties should be borne by the lessor, and about the utilization, the tenant will be capable.  The time of rent ought to be resolved and said in clear terms  The renter will undoubtedly utilize it as indicated by assention.  The resident is dependable and at risk for any damage to the rented resource.  A property mutually claimed can be rented out.  A joint proprietor can rent his proportionate offer to his co-sharer.  The rental ought to be resolved.  The lessor can't expand the lease singularly.  It will be ended on the fulfillment of composed period in the understanding. 962 b) TERMINATION OF LEASE In the event that the resident contradicts any of the term of assention, the lessor has this privilege and energy to end the rent contract singularly.963 c) INSURANCE OF THE ASSETS In the event that the property that is rented is guaranteed under the Islãmic strategy and method of "TAKAFUL",964 at that point it is considered to the detriment of the lessor, and it is additionally given and specified in the assention of the current "monetary leases". 965

962 Directive, Council. "Council Directive 85/374/EEC of 25 July 1985 on the approximation of the laws, regulations and administrative provisions of the Member States concerning liability for defective products." Official Journal L 210, no. 07/08 (1985): 0029-0033. 963 Fatima, Mateeha. "Differences and similarities between Ijara and conventional operating lease contracts." Market Forces 1, no. 4 (2016). 964 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005. 965 Kahf, Monzer. "The Use of Assets Ijara Bonds for Bridging the Budget Gap." ISLMIC Economic Studies 4, no. 2 (1997): 82.

378 ______d) SUB-LEASE It is decided that without the authorization of the lessor, the resident can't sub-rent the rented resource. 966 e) HEAD-LEASE As indicated by the Shariah, it is not permitted.967 f) SOME COMMENTS ABOUT FRANCHISE BUSINESS

In Islãmic FIQH this term is utilized all the time. Lexically the significance of this word is "to give something on lease". In Islãmic Jurisprudence, this term is utilized for two-unique circumstances and implications. On the primary spot, it used to utilize the administrations of the individual on the wages given to him as a thought of his procured administrations. The business is called "MUSTAJIR" while the representative is called "AJIR". Presently then again, in the system of establishment business the marvel is same. The individual who oversees something or working for lease or office for a man or anything for the lease, he is known as the proprietor or the franchisor and the individual to whom it was given, he will be known as the franchisee or rentee. As indicated by the phrasing of Islãmic law this procedure is called exceptionally close to the procedure of Islãmic establishment business. Furthermore, the wages that is paid to the AJIR is called "UJRAH" and in establishment business UJRAH is called "lease" and it is paid to the franchisor or proprietor that is fundamentally the same as AJIR. Presently plainly the hardware of establishment business is working simply like the apparatus of IJÃRAH in their own fields. On the second kind of IJÃRAH is this that the Usufructs of advantages and properties are given to the individual however not to the administrations of people. In this way, IJÃRAH is exceptionally practically equivalent to the English word "renting". Presently the individual who deals with the privilege of Usufructs of benefits, he is called "MUJIR" and in establishment business he is called "lessor". The individual who gets these rights is called "Renter" in establishment business

966 Moses, Leslie. "Distinction between a Sublease and an Assignment of a Mineral Lease in Louisiana." Tex. L. Rev. 18 (1939): 159. 967 Reiss, Brett. "Maximising non-aviation revenue for airports: Developing airport cities to optimise real estate and capitalise on land development opportunities." Journal of Airport Management1, no. 3 (2007): 284-293.

379 ______and in Arabic dialect the term IJÃRAH is called "MUSTAJIR". In the light of this talk we can state that sometimes the creatures and components of the establishment business are working simply like as the components of IJÃRAH as per the Islãmic standards and controls. Moreover, the initiation of the rent its tenets and controls, date and time and month, distinctive relations of the diverse gatherings, costs subsequent to possession, liabilities of the gatherings if there should arise an occurrence of lose to the benefit, variable rental in long haul leases, bounty for late installment of lease, end of rent and principles and direction of the end of rent, protection and surety of the advantages, the remaining estimation of the rented resource, the procedure of sub-renting and furthermore the allocating of rent every one of these terms and conditions and components are working in the same in the field of Franchise business. In this way, there are so much profound likenesses between the procedure of IJÃRAH and establishment business. 968 g) SALAM AND ISTISNÃ

It is one of the essential conditions for the legitimacy of a deal in Shariah that the thing is product (planned to be sold) ought to be in physical or helpful ownership of the merchant. There are three fixings in this condition:

 The ware ought to exist.  The merchant probably obtained the responsibility for ware or thing.  Mere proprietorship isn't sufficient. It probably come in the ownership of the vender.

There are just two special cases to this general manage and rule in Shariah one is called; SALAM; 969 and other is called; ISTISNÃ;970 These the two

968 Taylor, J. Michael. "ISLMIC BANKING‐THE FEASIBILITY OF ESTABLISHING AN ISLMIC BANK IN THE UNITED STATES." American Business Law Journal 40, no. 2 (2002): 385-414. 969 Muhammad, Mohd Zulkifli, and Rosita Chong. "The contract of bay Al-Salam and Istisna in ISLMIC commercial law: A comparative analysis." Labuan e-Journal of Muamalat and Society1 (2007): 21-28. 970 Zarqa, Muhammad Anas. "Istisna Financing of Infrastructure Projects." ISLMIC Economic Studies 4, no. 2 (1997): 69-70.

380 ______terms are called deals. In this way, it will be attempted to talk about in detail these two terms to finance in the accompany

5.4.7 SALAM

SALAM is a sort of offer in which the dealer guarantees to embrace the supply of some specific and particular products to the purchaser later on date and in the trading of cutting edge value 971that will be paid completely at the spot. In this deed, the cost is gotten in real money however the supply of the acquired972 or purchased products is conceded. In this sense, the purchaser is called (RABB-US-SALAM), the dealer is (MUSLAM ILAIH), the money cost is called (RAS-UL-MAL) and obtained item of thing is thought to be term as (MUSLAM FIH). 973 In any case, then again, with the end goal of effortlessness I should utilize the English equivalent word expressions of these terms. 974

SALAM truly was permitted by Holy Prophet (P.P.U.H) subject to certain condition. The fundamental reason and point of this deal was to address the issues and requests of the little agriculturists who needed cash to develop their yields and nourish their family till the time collect. At the point when the Holy Prophet (P.P.U.H) restricted RIBÃ they had left to take such advances. In this way, the Holy Prophet (P.P.U.H) enabled them to offer their horticulture items ahead of time position. 975

Additionally, every one of the merchants of Saudi Arabia used to send out their products for alternate nations and places and furthermore import a few merchandises for their own country. For this reason, they required cash for

971 El‐Gamal, Mahmoud A. "Mutuality as an antidote to rent‐seeking Shariah arbitrage in ISLMIC finance." Thunderbird International Business Review 49, no. 2 (2007): 187-202. 972 Archer, Simon, and Abdullah Haron. "Operational risk exposures of ISLMIC banks." ISLMIC finance: The regulatory challenge 394 (2007): 121. 973 Ajmal, Muhammad Mobeen, Abdul Rafay, and Ramla Sadiq. "Pricing of Bai Salam: An Analytical Perspective." (2017). 974 Dchieche, A., and R. Aboulaich. "New approach to model Salam contract for profit and loss sharing." International Journal of Applied Engineering Research 11, no. 2 (2016): 909-916. 975 Muhammad, Mohd Zulkifli, and Rosita Chong. "The contract of bay Al-Salam and Istisna in ISLMIC commercial law: A comparative analysis." Labuan e-Journal of Muamalat and Society1 (2007): 21-28.

381 ______undertaking this sort business so they were permitted to do this business with help of SALAM effortlessly.

In these conditions, SALAM was exceptionally advantageous to the merchant, since he got every one of the costs ahead of time and it was likewise valuable to the side of purchaser, in light of the fact that regularly the cost in the deed of SALAM used to be lower than the real cost in spot deals. a) CONDITIONS OF SALAM  It is exceptionally important for the approval of SALAM that the buyer should pay the maximum to vender at the season of affecting. It is additionally extremely fundamental on the grounds that in other case without full installment from the buyer, it ought to be commensurate to the offer of obligation against the obligation and it is disallowed by Holy Prophet (P.P.U.H). Imam Malik says in regards to this deal the vender may give a few days condition to the purchaser at the season of assention.  This kind of offer ought to be affected just in those wares whose quality and amount indicated precisely. For instance: valuable stones are not sold on the premise of SALAM in light of the fact that each bit of valuable stone is very surprising from the other and the quality and amount is likewise extraordinary.  SALAM can't be affected on the specific and particular ware or on a result of a specific field or homestead. For instance: if the vender needs to attempt to supply a wheat of a particular field or a product of specific tree in these cases the SALAM won't be substantial. A similar lead is executed and appropriate to each product the supply of which isn't sure.  It is likewise extremely mandatory that the nature of product ought to be indicated with no uncertainty.  The amount of the item ought to likewise be clarified in detail.  The correct and due date and place of conveyance ought to be determined and said in the agreement.

382 ______ If the things are not conveyed at the recognize the SALAM won't happens. In this association, there is extremely renowned Hadith specified in the accompanying:

"Whoever wishes to go into the agreement of SALAM he should influence the SALAM as indicated by the predefined measure and the predetermined weight and determined date of the conveyance."976

According to Hanafi School of thought the deed of SALAM stays accessible in the market from the date of agreement till the date of conveyance.

According to the School of thought of Shafi'i, Maliki, humble, i all these Islãmic Jurists say that the product ought to be available and accessible at the season of conveyance. b) SALAM AS A MODEL OF FINANCING

SALAM is extremely valuable and supportive method of financing in the season of Holy Prophet (P.P.U.H) and furthermore now-a-days. The vast majority of individuals are profiting from this method of financing. Numerous ranchers additionally getting profits by this technique and guideline in all the Islãmic banks SALAM is being received quickly to advance the office for individuals who require cash in various organizations. Furthermore, most critical thing is this it isn't denied in Shariah. 977 c) SOME RULES OF PARALLEL SALAM

The cutting edge Islãmic banks and budgetary organizations are utilizing the instruments and apparatuses of parallel SALAM. Along these lines, there are a few principles for the approval of this assention that are in the accompanying:

976 Kaleem, Ahmad. "APPLICATION OF ISLMIC BANKING INSTRUMENT (BAY [SALAM) FOR AGRICULTURE FINANCING IN PAKISTAN." ISLMIC FINANCE FOR MICRO AND MEDIUM ENTERPRISES (2008): 131. 977 Iqbal, Munawar, and David T. Llewellyn, eds. ISLMIC banking and finance: new perspectives on profit sharing and risk. Edward Elgar Publishing, 2002.

383 ______ In the course of action of the parallel SALAM every one of the banks go into two unique contracts. In this deed and understanding bank is known as the purchaser and the other condition the bank is known as the vender.  Parallel SALAM is likewise permitted and allowed with the outsider moreover.978 d) SOME COMMENTS ABOUT FRANCHISE BUSINESS

Truth be told, SALAM is a deal and the merchant should embrace to supply some specific products to the purchaser at the future and date in return and return of a propelled value that is completely paid at the spot. Presently here is the point that in this arrangement the cost is paid in real money and the supply of the bought things and merchandise is conceded. Along these lines, in the field of SALAM bargain the purchaser is called "RABB-US-SALAM" and this Islãmic expression is called "the franchisee or the client" in the field of establishment business and the vender is in SALAM field "MUSLAM ILAIH" and this Islãmic expression is called "the franchisor or proprietor" in the field of establishment business. The money cost is called "RAS-UL-MAL" and this Islãmic expression is called "the value; lease; propel cash" in the feeling of establishment business wonder. The obtained product is called "MUSLAM FIH" and this term is brought in the field of establishment business the main "item". In this way, in the light of discourse oversaw above we can state here and there the establishment business is working and assuming the part of Islãmic business simply like of SALAM in the diverse field of life and on the distinctive circumstances and places on consistent premise. Along these lines, as indicated by the discourse outfitted by the Islãmic Jurists in the diverse books of Islãmic business and fund the procedure, wonder and system are extremely same to each other. What's more, the states of SALAM, the SALAM as a method of financing and furthermore a few tenets of parallel SALAM are embracing in the establishment business

978 Haron, Abdullah, and John Lee Hin Hock. "Inherent risk: credit and market risks." ISLMIC finance: The regulatory challenge 2 (2007).

384 ______on better places and in the arrangements of business in light of Islãmic Jurisprudence and in the light of Islãmic Shariah. 979

5.4.8 ISTISNÃ980

ISTISNÃ is the second sort and sort of offer in which an item is executed before it appears. It implies that if a man arranges a maker for assembling the particular ware for the buyer. In the event that the producer is prepared to attempt the obligation to fabricate the merchandise for him with material from the maker, the exchange of such ISTISNÃ appears. In any case, the state of legitimacy of ISTISNÃ is this that the cost ought to be settled with assent and will of the gatherings with the vital determination of the ware. The assention and contract of ISTISNÃ makes an ethical commitment and obligation on the maker to produce the merchandise. a) DIFFERENCE BETWEEN ISTISNÃ AND SALAM  The subject of the deed of ISTISNÃ is constantly viewed as a thing that requirements producing while SALAM deed can be influenced (connected) on anything, regardless of whether it needs fabricating or not.  It is essential in SALAM deed that the cost ought to be forked over the required funds and ahead of time, while it isn't vital in ISTISNÃ.  In the state of SALAM, the understanding can't be wiped out singularly, while the opposite side the assention will be crossed out before the producer begins the work.  The time of conveyance is the imperative and basic piece of the offer of SALAM while it isn't essential in the deed of ISTISNÃ. 981 b) DIFFERENCE BETWEEN ISTISNÃ AND IJÃRAH

It is vital and fundamental contrast that the maker attempts the obligation to make and produce the required products with his own material. This

979 Sarker, Md Abdul Awal. "ISLMIC business contracts, agency problem and the theory of the ISLMIC firm." International Journal of ISLMIC Financial Services 1, no. 2 (1999): 12- 28. 980 Muhammad, Mohd Zulkifli, and Rosita Chong. "The contract of bay Al-Salam and Istisna in ISLMIC commercial law: A comparative analysis." Labuan e-Journal of Muamalat and Society1 (2007): 21-28. 981 Usmani, Maulana Taqi. "Salam and Istisna." Online publication by accountancy. com. pk (2005).

385 ______exchange clarifies and infers that the maker will acquire the material on the off chance that it isn't as of now with him. Be that as it may, for another situation, if the material is given by the client and the producer is just required to utilize his work and furthermore aptitude just than the exchange isn't ISTISNÃ. For this situation, the exchange will be considered as of IJÃRAH.982

In this association Imam Abu Hanifah says that "the buyer has the privilege to see that is called Option of seeing (Khiyar-ur-Ruyah)". 983

Imam Abu Yousaf 984says that "the gatherings ought to be settled upon the particulars of the ware at the season of the agreement and they have additionally ideal to see. This view has been favored by all the Jurist of Ottoman Empire and furthermore the Hanafi law." c) TIME OF DELIVERY

As per the tenets and law of the agreement of ISTISNÃ the time date and everything ought to be said in the assention. What's more, said and designated time of conveyance in the ISTISNÃ. d) ISTISNÃ IS THE MODE OF FINANCING

ISTISNÃ is exceptionally helpful mode for giving the office of financing in the specific and certain exchanges particularly in the field of house back area. In the event that the customer is the proprietor of the land and he additionally looks for financings for the development of a house, the lender may attempt the obligation to build the house on that open place and arrive on the premise of the deed of ISTISNÃ. Since the cost is paid ahead of time, it is extremely useful for the general population.

982 Archer, Simon, and Abdullah Haron. "Operational risk exposures of ISLMIC banks." ISLMIC finance: The regulatory challenge 394 (2007): 121. 983 Munawar-Shah, Syed, Mariani Abdul-Majid, and Zulkefly Abdul Karim. "Maqasid-al- Shari’ah and Debt Financing Contracts: Some Observations." In The Name of Allah, The most Beneficent, The most Merciful (2017): 78. 984 Yusoff, Remali, and Shaherah Abdul Malik. "THE CONTRACT OF BAY-AL-SALAM AND BAY-AL-ISTISNA IN ISLMIC COMMERCIAL LAW: A COMPARATIVE AND APPLICATION ANALYSIS FOR WAQF."

386 ______Then again, it isn't vital that the agent will undoubtedly build the house himself. He can go into field of parallel contract of ISTISNÃ, with the outsider.

The agent in such case is in charge of the development of the house as indicated by the composed direction in the assention. In this manner, the instrument of ISTISNÃ is utilized for the undertaking financing moreover. Correspondingly, the agreement of ISTISNÃ is utilized for building a scaffold or a kind of interstate.

In the cutting-edge techniques for BOT (Buy, Operate and Transfer) the understanding may likewise be for formalized on the premise of ISTISNÃ. Subsequently, if an administration needs to develop a parkway, it might go into the agreement and understanding of ISTISNÃ in the state of a developer. The cost of the deed of ISTISNÃ, for this situation is thought to be the privilege of the developer to work the thruway and gather tolls for a particular and specific timeframe. 985 e) SOME COMMENTS ABOUT FRANCHISE BUSINESS

ISTISNÃ is second kind and sort of offer in which the product or anything is executed before coming into the presence or on the stage. In this way, this procedure and arrangement of ISTISNÃ is regularly utilized as a part of the field of processing plant, industry or in the factories and so on. Along these lines, this procedure is embraced in the field and in the line establishment business. A franchisor is called that individual who executed and under take the guarantee to give some item of some particular kind. In this way, he should satisfy his guarantee at each cost. The contact of ISTISNÃ has the worry of Moral commitment on the maker, likewise on the opposite side this ethical anxiety and commitment on the franchisor in the matter of establishment sort. In this way, there is much likeness between the procedures of ISTISNÃ bargain and furthermore establishment bargain as per the Islãmic of Shariah. Notwithstanding this the procedure of cancelation the agreement, method for installment, principles of terminations, protection,

985 Ali, Salman Syed. "ISLMIC modes of finance and associated liquidity risks." In conference on Monetary Sector in Iran: Structure, Performance & Challenging Issues, February, Tehran, Iran. 2004.

387 ______security, insurance and every one of the tenets and controls utilized as a part of this arrangement, time of conveyance, ISTISNÃ as model of financing and the various things that establishment business. Along these lines, thusly the establishment business is thought to be near the procedure of ISTISNÃ as per the Islãmic and Shariah too. 986

5.5 FRANCHISE DISCLOSURE DOCUMENT (FDD) AND ISLÃMIC LAW OF BUSINESS 5.5.1 INTRODUCTION TO FDD;

A FRANCHISE DISCLOSURE DOCUMENT (FDD),987 is imperative authoritative report which is outfitted and displayed to the point of view and concerned purchasers and buyers of a few establishments in the pre-deal type of revelation process in the U.S.A. It was initially perceived and known as the UNIFORM FRANCHISE OFFERING CIRCULAR (UFOC) or otherwise called (Uniform Franchise Revelation Report), and preceding its amendments, it was made by the FEDERAL TRADE COMMISSION in the time of 2007. After this procedure, it was given over to the franchisors in July, 2008, for the consistence of the progressions.

The Federal Trade Commission lead of 1979 administers and runs the revelation of fundamental data of a wide range of offer of establishments to the general population which underlies the state FDDs and furthermore denies any private sort of right of activity for any infringement of the ordered exposure arrangements of the FDDs. At the end of the day, it implies that the state governments just have the privilege to sue and furthermore can arrange the assent orders and furthermore rescissions when every one of those franchisors that disregard such arrangements of the FTC establishment run the show. As per the government exchange commission there are at about and right around 15 states on the planet that require the franchisors to give and give FDD to the franchisees before the season of any establishment understanding is being marked on the grounds that all the

986 Taylor, J. Michael. "ISLMIC BANKING‐THE FEASIBILITY OF ESTABLISHING AN ISLMIC BANK IN THE UNITED STATES." American Business Law Journal 40, no. 2 (2002): 385-414. 987 Lederman, Howard Yale. "Franchising and Franchise Law." Mich. BJ 92 (2013): 34-35.

388 ______franchisors who purchase or buy they utilize and furthermore get advantage from the data that is contained and spared in the FDD about their establishment look into. So FDD is extremely thorough, significant and proficient records for every assention of establishment business988 a) ELEMENTS OF FRANCHISE BUISNESS

There are 23 components of establishment business that are taken after and overseen entirely in each arrangement and each understanding of establishment business. The names of 23 components of establishment business are specified in the accompanying:

 The Franchisor and Also the Parents, Predecessors and Also the Affiliates  The Identity and The Business Experience of The Key Persons  The History of Litigation  The Situation of Bankruptcy  The Initial Fee of The Franchise  The Other Fee and Also Explained Expenses  The Estimated Initial Investment of The Franchisee  Some Restrictions on The Sources of The Products and Also Services  The Obligations of Every Franchisee  The Detailed Financial Arrangements  The Obligations of Every Franchisor  The Territory  The Trademarks  The Patents, The Copyrights, And Also the Property  The Obligations of Every Franchisee for The Participation the Real and Actual Operation of Any Franchise Business  The Some Restrictions on The Goods and Also on Services by A Franchisee

988 Harif, Mohd Amy Azhar Hj Mohd, and Chee Hee Hoe. "The financial and non-financial elements in the franchise disclosure document for a new franchise system." World 1, no. 3 (2011): 16-28.

389 ______ The Renewal, The Termination, The Repurchase, The Modification, The Transfer, And Also the Resolution of The Dispute  The Public Figures  The Representations of The Financial Performance  The List of The Franchise Outlets  The Financial Statements  The Contracts Detail  The Acknowledgment of The Receipt 989 5.5.2 FDD AND ISLÃMIC LAW OF BUSINESS

Every one of the 23 components are incorporated into the FDD. The FDD is extremely far reaching archive document that involves all the 23 components of establishment business. That is the reason, I might endeavor to break down just the qualities and characteristics of the FDD in light of the fact that it incorporates all other 23 things and components of establishment business in it, and it will speak to the legitimate and Islãmic esteems and characteristics of the considerable number of components. Presently plainly when any individual needs to begin an establishment business, he will undoubtedly present, the composed assention, composed terms and conditions, sort and sort of business and standards and controls of end of business and so on to the next individual, at each cost, and every one of these things are found and accessible in the document of the FDD. Along these lines, here, I should contrast the FDD and the principles and directions of Islãmic law of Shariah in following lines: a) THE FDD IS IN WRITTEN FORM

It is in the written condition and so, for this reason, it is analogous to the Qurãn and Hadith, because the ALLAH ALMIGHYY says in the Qurãn: (2:282)

989 Eydt, George J., and Edward Levitt. "The Devil Is in the Details: How Canadian and US Franchise Legislation Differs." Franchise LJ 32 (2012): 237.

390 ______ٓ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن ٓواْۡإ ذَاۡتَدَايَنت مۡب دَۡي ٍنۡإ َل َٰٓىۡأَ َج ٖلۡ ُّم َس ٗ مىۡ َفۡٱ ۡكت ب و هۡ ۡ َوۡليَ ۡكت بۡبَّۡينَ ك ۡمۡ ۡ َكات ُۢ بۡبۡ ٱۡلعَ ۡد لۡۡ َو َلۡيَأ َبۡ َكات ٌبۡأَنۡيَ ۡكت َبۡ َك َماۡ َعلَّ َمه ۡٱ َّ ّۡلل ۡ َفۡليَ ۡكت ۡبۡ َوۡلي ۡم ل لۡٱلَّ ذيۡ ۡ ۡ ۡ َع َلۡي هۡٱل َح ُّقۡۡ َوليَتَّ قۡٱ َّّۡللَۡ َربَّهۡ ۥۡ َو َلۡيَۡب َخ ۡسۡ مۡنه ۡ َشۡيۡ اۡ َفإ نۡ َكا َنۡٱلَّ ذيۡ َعلَۡيۡ هۡۡٱل َح ُّقۡۡ َس في ًهاۡأَۡوۡ َض عيفًاۡأَۡوۡ َلۡيَ ۡستَ طي عۡأَنۡي م َّلۡ ه َوۡ َفۡلي ۡم ل ۡلۡ َو ليُّهۡ ۥۡبۡ ٱۡلعَ ۡد لۡۡ َوۡٱ ۡستَ ۡش هد واْۡۡ َش هيدَۡي نۡ منۡ ر َجا ل ك ۡهمۡ َفإ نۡلَّۡ ۡمۡۡيَ كونَاۡ َر ج َلۡي نۡ َف َر ج لۡ َوۡٱ ۡم َرأَتَا نۡۡ م َّمنۡتَ ۡر َض ۡو َنۡ ۡ م َنۡٱل ُّش َهدَآ ءۡۡأَنۡتَۡ ض َّلۡإ ۡحدََٰى ه َماۡ َفت ذَ ك َرۡإ ۡحدََٰى ه َماۡٱ ۡۡل ۡخ َر َٰ ىۡۡ َو َلۡيَأ َبۡٱل ُّش َهدَآ ءۡۡإ ذَۡاۡ َٰ َماۡد عواْۡ َو َلۡتَ ۡسۡ م ٓواْۡأَنۡتَ ۡكت ب وه ۡ َص غي ًراۡأَۡوۡ َكب ي ًراۡإ َل َٰٓىۡۡأَ َج ل هۡۦ ۡذَ ل ك ۡمۡأَۡق َس طۡ عۡندَۡ ٱ َّّلل ۡۡ َوأَۡق َو مۡ لل َّش ََٰهدَة ۡ َوأَ ۡدنَ َٰٓىۡأَ َّلۡۡتَ ۡرتَاب ٓواْۡإ َّ ٓلۡأَنۡتَ كو َنۡت ََٰج َرةًۡ َحا ض َر ٗةۡت دي رونَ َهاۡ بَۡينَ ك ۡمۡ َف َلۡي َسۡ َعلَۡي ك ۡمۡ جنَا ٌحۡأَ َّلۡتَ ۡكت ب و َه اۡ َوأَ ۡش هد ٓواْۡإ ذَاۡتَبَايَ ۡعتۡ ۡ مۡۡ َو َلۡي َضۡآ َّرۡ َكات بۡ ُۢ َو َلۡ َش هي دۡ َوإ نۡتَۡفعَل واْۡ َفإ نَّهۡ ۥۡف سو قۡب ك ۡ مۡ َوۡٱتَّق واْۡۡٱ َّهّۡللَۡ َوي عَ ل م ك مۡٱ َّ ّۡلل ۡ َوۡٱ َّّۡلل ۡب ك لۡ َش ۡي ٍءۡ َع لي م٢٢٢ۡۡ

O you who accept, when you execute an obligation payable at a predefined time, set it in motion, and let a copyist compose it between you with decency. A copyist ought not decline to compose as ALLAH has instructed him. He, thusly, ought to compose. The person who owes something ought to get it composed, yet he should fear ALLAH, his Lord, and he ought not overlook anything from it. On the off chance that the person who owes is dim witted or powerless or can't manage himself, at that point his gatekeeper should direct with reasonableness. Have two observers from among your men, and if two men are not there, at that point one man and two ladies from those witnesses whom you like, so that on the off chance that one of the two ladies fail, the other lady may remind her. The witnesses ought not reject when summoned. What's more, don't be fatigued of recording it, alongside its due date, regardless of whether the obligation is little or expansive. That is fairer in ALLAH 's sight, and steadier as proof, and more prone to influence you to free of uncertainty. Be that as it may, on the off chance that it is a spot exchange you are influencing between yourselves, there is no wrongdoing on you, should you not compose it. Have witnesses when you execute a

391 ______deal. Neither a copyist ought to be made to endure, nor a witness. On the off chance that you do (something hurtful to them), it is unquestionably a wrongdoing on your part, and dread ALLAH. ALLAH instructs you, and ALLAH is All-Knowing in regard of everything. (2:282)

b) NOT AMBIGUOUS

It is not ambiguous in its nature. It is clear, easy, transparent, and reasonable and also elicit for the readers. So, this is also the quality and virtue of the Shariah rules. ٓ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡٱتَّق واْۡۡٱ َّّۡللَۡ َوق ول واْۡ َقۡ ۡو ٗلۡ َس دي ٗدا٣١ۡۡ

O you who trust, fear ALLAH, and talk in clear words. (33:70)

لَّ َق ۡدۡۡأَن َزۡلنَآۡ َءا َٰيَ ٖتۡ ُّمبَي َٰنَ ٖتۡ َوۡٱ َّّۡلل ۡيَ ۡه ديۡ َمنۡيَ َشآ ءۡإ َل َٰىۡ ص ََٰر ٖطۡ ُّم ۡستَ قيٖم٤٢ۡۡ

We have most likely sent down edifying verses, and ALLAH guides whom He wills to the straight way. (24:46)

c) FACILITATOR; It facilitates the people according to the Islãmic Law. ۡ ق ۡلۡأَ َر َءۡيت ۡمۡإ ۡنۡأَ ۡصبَ َحۡ َمآ ؤ ك ۡمۡ َغ ۡو ٗراۡ َف َمنۡيَأت ي كمۡب َمآ ٖءۡ َّم عي ُۢ ن٣١ۡۡ

Say: Tell me, should your water vanish into the earth, who will present to you a streaming (stream of) water? (67:30) The Holy Prophet (P.P.U.H) said: “you should initiate and do things. Everyone shall be facilitated toward that for which he was created” (Al- Bukhari and Muslim) d) NOT HARMFUL; It does not harm and injure the people and this is the aspiration of Shariah. ۡ ۡ ۡ ۡ ق ۡلۡۡإ نَّ َماۡ َح َّر َمۡ َرب َيۡٱل َف ََٰو ح َشۡۡ َماۡ َظ َه َرۡ مۡن َهاۡ َو َماۡبَ َط َنۡ َوۡٱ ۡلث َمۡۡ َوۡٱلبَ ۡغ َيۡۡب َغۡي رۡ َٰ ٱۡل َح ۡقۡ َوأَنۡت ۡش ر كواْۡبۡ ٱ َّ ّللۡۡ َماۡ َل ۡمۡي نَ ز ۡلۡب هۡۦۡ سۡل َطٗنۡاۡ َوأَنۡتَق ول واْۡ َع َلىۡٱ َّ ّللۡۡ َماۡ َلۡ تَ ۡع َل مو َن٣٣ۡۡ

392 ______Say: My Lord has precluded just the dishonorable demonstrations, regardless of whether open or mystery, and (each) corrupt demonstration, and uncalled-for animosity, and that you connect with ALLAH anything for which He has not sent any specialist, and that you credit to ALLAH anything about which you don't have beyond any doubt information. (7:33) َٰ ۡ ۡ َوذَ رواْۡ ۡ َظ ه َر ۡٱ ۡ ۡلث مۡ ۡ َوبَا طنَهۡ ۥٓۡ ۡإ َّن ۡٱلَّ ذي َنۡ ۡيَ ۡك سب و َن ۡٱ ۡ ۡلث َمۡ ۡ َسي ۡج َز ۡو َن ۡب َما ۡ َكۡان و ْاۡ يَ ۡقتَ رف و َن١٢١ۡ

Leave outward sin and internal sin. Most likely, the individuals who confer sin might be rebuffed for what they used to submit. (6:120)

e) LITIGATION RIGHT; (JUDICIAL RIGHTS AND DUTIES)

It is composed in the FDD regardless of treachery, damage and imbalance, both the gathering can bid and enlist the body of evidence against each other. This is additionally as indicated by the Islãmic Shariah on the grounds that Islãmic law give the rights to the affectee to go to the court against the oppressor. Along these lines, in this circumstance the FDD has a similarity with the Islãmic touch and nature.

َوأَ نۡۡٱ ۡح كمۡبَۡينَ همۡب َمآۡأَن َز َلۡٱ َّّۡلل ۡ َو َلۡتَتَّب ۡعۡأَ ۡه َوآ َء ه ۡمۡۡ َوۡٱ ۡحذَ ۡر ه ۡمۡۡأَنۡيَ ۡفت ن و َكۡ َع ُۢنۡ بَ ۡع ضۡ َمآۡأَن َز َلۡٱ َّّۡلل ۡإ لَۡي هَكۡ َفإ نۡتَ َولَّ ۡواْۡ َفۡٱ ۡع َل ۡمۡۡأَنَّ َماۡي ريد ۡٱ َّّۡلل ۡأَنۡي صيبَ همۡبۡ بَ ۡع ضۡ ذ ن وب ه ۡ مۡ َوإ َّنۡ َكث ي ٗراۡ م َنۡٱلنَّا سۡۡ َل ََٰف سق و َن٤٣ۡۡ

We arrange you to judge between them as indicated by what ALLAH has sent down. Try not to take after their wants, and be careful with them, keeping in mind that they should dismiss you from some of what ALLAH has sent down to you. On the off chance that they dismiss, be guaranteed that ALLAH plans to influence them to languish over some of their wrongdoings. Unquestionably, huge numbers of the general population are miscreants. (5:49)

393 ______َف َالۡۡ َو َرب َكۡ َلۡي ۡؤ من و َنۡ َحتَّ َٰىۡي َح ك مو َكۡف ي َماۡ َش َج َرۡبَۡينَ ه ۡمۡث َّمۡ َلۡيَ جد واْۡف ٓيۡأَنف س ه ۡمۡ َح َر ٗجاۡ م َّماۡ َق َضۡي َتۡ َوي َس ل مواْۡتَ ۡس لي ٗما٢٥ۡۡ

Thus, never by your Lord! Never should they move toward becoming adherents, unless they make you the judge in the question that emerge between them, at that point discover no inconvenience in their souls against what you have chosen, and surrender to it in all out accommodation. (4:65)

f) LIMITATIONS AND RESTRICTIONS; (HUDOODS)

As indicated by FDD there are a few constraints and a few confinements on both the gatherings inside the cutoff points they need to live and work and not permitted to cross these impediments and limitations. Additionally, the Shariah has likewise defined a few impediments and limits among which a Muslim and a typical is considered to do their obligations and not cross these constraints. Along these lines, both side of the business and learning are near each other. ۡ ۡ َٰ ۡ َ ت ل َكۡۡ حد ود ۡٱ َّ ّللۡۡ َو َمنۡي طع ۡٱ َّّۡللَۡ َو َر سو َلهۡ ۥۡي ۡد خله ۡ َجنَّ ٖتۡتَ ۡج ريۡ منۡتَ ۡحت َهاۡٱۡلۡۡن ََٰه رۡۡ َٰ ََٰخ ل دي َنۡف ي َه اۡ َوذَ ل َكۡٱۡل َف ۡو زۡۡٱۡلعَ ظي م١٣ۡۡۡ

These are the points of confinement set by ALLAH. Whoever obeys ALLAH and His Messenger, He will concede him to gardens underneath which waterways stream, where he will live until the end of time. That is an incredible achievement. (4:13) ۡ َو َمنۡيَ ۡع صۡٱ َّّۡللَۡ َو َر سو َلهۡ ۥۡ َويَتَعَدَّۡ حد ودَهۡ ۥۡي ۡد خله ۡنَا ًراۡ ََٰخ ل ٗداۡفۡ ي َهاۡ َو َلهۡ ۥۡ َعذَا بۡ ُّم هي ن١٤ۡۡ

Whoever ignores ALLAH and His Messenger and transgresses the cutoff points set by Him, He might concede him to the Fire, where he will remain until the end of time. For him there is a mortifying discipline. (4:14)

394 ______g) DUTIES AND OBLIGATIONS;

It imposes some duties and obligations on both the parties which they have to do and perform and same thing is mentioned in Shariah that every man has some duties and some obligations. So, there is also a very near difference between both side of the knowledge and statement. َٰ َوإ َل َٰىۡۡ َم ۡديَ َنۡأَ َخا ه ۡمۡ شعَۡيٗب اۡ َقا َلۡ َٰيَ َق ۡو مۡٱ ۡعب د واْۡۡٱ َّّۡللَۡ َماۡ َل كمۡ م ۡنۡإ َل ٍهۡ َغۡي رهۡ ۥهۡ َقۡ ۡدۡ َجۡآ َء ۡت كمۡ بَي نَ ةۡ منۡ َّرب ك ۡهمۡ َفأَۡوف واْۡٱۡل َكۡي َلۡۡ َوۡٱۡل مي َزا َنۡۡ َو َلۡتَۡب َخ سواْۡٱلنَّا َسۡۡأَ ۡشيَآ َء ه ۡمۡ َو َلۡۡت ۡف سد واْۡ َٰ َٰ ف يۡٱ ۡۡلَۡ ۡر ضۡبَ ۡعدَۡإ ۡص َل ح َه اۡذَ ل ك ۡمۡ َخۡي رۡلَّ ك ۡمۡإ نۡ كنت مۡ ُّم ۡؤ من ي َن٢٥ۡۡ

What's more, to Madyan (We sent) their sibling Shu'aib. He stated: O my kin, adore ALLAH. You have no god other than Him. There has come to you an unmistakable sign from your Lord. Give the measure and weight in full, and don't influence individuals to shy of their things, and don't make fiendishness on the earth after it has been set all together. That is beneficial for you, on the off chance that you are devotees. (7:85)

h) PROMISE MAKING;

It is also written in the FDD that every party is bound to fulfil their promise. And this thing also stated in the Holy Qurãn as ALLAH says in the Holy Qurãn: ۡ ۡ َو َلۡۡتَۡق َرب واْۡ َما َلۡٱليَت ي مۡۡإ َّلۡبۡ ٱلَّت يۡ ه َيۡأَ ۡح َس نۡ َحتَّ َٰىۡيَۡبل َغۡأَ شدَّهۡ ۥ ۡ َوأَۡوف واْۡبۡ ٱلعَ ۡه ه ۡدۡ إ َّنۡٱۡلعَ ۡهدَۡۡ َكا َنۡ َم ۡسۡو ٗل٣٤ۡۡ

Try not to go close to the property of a vagrant, with the exception of in a way that is great, until the point that he goes to his development. What's more, satisfy the agreement. Clearly, the contract might be gotten some information about (on the Day of Reckoning). (17:34)

i) RIGHT OF TERMINATION;

It gives the right to every party that in any case of emergency or in bad conditions they have the right to terminate the agreement according to the

395 ______terms and conditions written in the FDD. On the other side, Islãmic law also gives the same right to both the parties in all the agreement of business in any adverse condition. So, we can say the franchise business is analogous also to the Islãmic rules and laws stated about the business.

“The Holy Prophet (P.P.U.H) said, “all the conditions agreed upon by the Muslims are upheld, except a condition which allows what is prohibited and prohibits what is lawful”

j) RIGHT OF RENEWAL; ETC.

The FDD also gives the right to both the parties to renew their business, agreement and any type of deal of business if they are willing to do so. The same thing is written in the Islãmic law in any kind of business such as Shirkah, MUDÃRABAH and MURÃBAHAH etc. So, according to this point there is a very close sameness between the franchise business rules and also Islãmic business rule. ۡ ۡ َش ۡه رۡ ۡ َر َم َضا َن ۡٱلَّ ذ ٓيۡ ۡأ ن ز َل ۡف ي ه ۡٱلق ۡر َءا نۡ ۡ ه ٗدى ۡ ل لنَّا س ۡ َوبَي َٰنَ ٖت ۡ م َن ۡٱل هدَ َٰىۡۡ ه َوۡٱۡلف ۡر َقا ۡنۡ َف َمنۡ َش هدَۡ من ك مۡٱل َّش ۡه َرۡۡ َفۡليَ ص ۡمه ۡ َو َمنۡ َكا َنۡ َم ري ًضاۡأَۡوۡ َع َل َٰىۡ َس َف ٖرۡ َف عدَّ ةۡ م ۡنۡأَيَّا ٍمۡأ َخ َرۡي ريد ۡٱ َّّۡلل ۡب ك مۡٱۡلي ۡس َرۡۡ َو َلۡي ريد ۡب ك مۡٱۡلع ۡس َرۡۡ َو لت ۡك ملۡ واْۡٱۡل عدَّةَۡۡ َو لت َكب رواْۡٱ َّّۡللَۡ َع َل َٰىۡ َماۡ َهدََٰى ك ۡمۡۡ َو َلعَلَّ ك ۡمۡتَ ۡش ك رو َن١٢٥ۡۡ

The period of Ramadan is the one in which the Qurãn was uncovered as direction for humankind, and as clear signs that demonstrate the correct way and recognize good and bad. So those of you who witness the month should quick in it. In any case, the person who is wiped out, or is on an excursion (should quick) as much from different days (as he missed). ALLAH expects (to give) ease for you and does not mean (to make) hardship for you. This is so you may finish the number (of fasts as recommended) and announce the Takbir of ALLAH for having guided you, and (so) that you might be appreciative. (2:185) 990

990 Elsaman, Radwa Salah. Toward an Egyptian franchising law based on a comparative study of the laws of the United States, China, and Malaysia. American University, 2012.

396 ______5.5.3 LEGAL JUSTIFICATIONS OF FRANCHISE BUSINESS IN ISLÃMIC SHARIAH A) RULES OF FRANCHISE BUSINESS IN ISLÃMIC LAW

Basically, franchise business is considered just like Shirkah that is considered according to the Islãmic law. Shirkah is very important item in Islãmic law that is synonym and analogous to franchise business and there are three important kind of Shirkah that are following:

 SHIRKAH IBAHAH In this type, the fellow-ship is allowed the right of every one to enjoy and get the benefit that does not exist under the role of one in a physical state.991  SHIRKAH AMLAK (PROPERTY) According to this kind there is an agreement and also alliance between the two or more people to have and hold an object.992  SHIRKAH CONTRACT (AGREEMENT)993 This is such type of Shirkah in which two or more persons are including in the agreement. Furthermore, there are four types of Shirkah Contract that are in the following:  SHIRKAH AMWAL This is an agreement and alliance between two or more people in the capital; property.  SHIRKAH AMAL In this agreement and alliance two or more people accept some job from a third party that will be undertaken jointly with wage provision are divided into two.

991 Hafeez, Dr, and Malik Muhammad. "An Analysis of Corporate Entity and Limited Liability in ISLMIC and Western Perspectives of Corporate Governance." Browser Download This Paper (2016). 992 Zahrowati; Borahima, Anwar; Said, Nurfaidah; Hasbir. "The Essence of Property Obtained between Husband and Wife during Marriage." JL Pol'y & Globalization 53 (2016): 121. 993 Wahyudi, Imam. "Commitment and trust in achieving financial goals of strategic alliance: Case in ISLMIC microfinance." International Journal of ISLMIC and Middle Eastern Finance and Management 7, no. 4 (2014): 421-442.

397 ______ SHIRKAH WUJUH In this agreement, two or more people included with capital assets from outside parties.  SHIRKAH MUDARABA (PARTNERSHIP) This partnership is between power and wealth. It means a supplier gives his property to another party that is called manager which is used for business, provided that the profit earned will be divided by agreement of both parties.

The franchise business considerable benefits play a major role in increasing small business development. In terms of franchise positive thinking are according to Islãm. There is some indication in above discussion that the franchise business transaction is permitted by Islãmic law. Because the franchise agreement including the form (Shirkah). It also gives special rights and power to the recipient so franchising is a reciprocal agreement because in this agreement both the parties care for each other benefits. But in spite of these after a lengthy explanation about the franchise there are some similarities and also differences in franchise according to the Islãmic and positive law. Similarly, the similarities are the following:

 The franchise business is basically corporation (Shirkah) mutual benefit; it means it can be easily understand that the franchise business is considered in the category of Shirkah according to the Islãmic law.  There is an achievement and progress especially for the franchisee and it is very same just as Mudarba (Shirkah Muqayyadah).  In franchise business there are goods, important services and also personnel who comply with one kind of Shirkah. So, it is also a category of Shirkah.  There are two people or more are included in the franchise business when they do some transaction, some agreement, some certain terms, written and recorded and also by some specific causes in accordance with contract terms and conditions. And this type is also considered just as Shirkah Mudarbah.994

994 Alam, Jahangir, and Mohammad Akter Hossan. "Linking Between Franchising Networks for Entrepreneurship and Economic Development-Looking for a New Model." In EMNet-

398 ______There are some differences in franchise business that are contrary to the Islãmic law are the following:

 In Shirkah Mudarba, capital must be in the form of money goods should not. While the franchise may be assisted at every cost by the franchisor especially capital, goods, money are professionals.  There is a franchise help and corporation especially in the field of intellectual property right, and that is a trade mark. And on the other side, in Islãmic law it includes Shirkah Amlak (property right).  Do not advance corporation in selling the illicit, while the positive law there is no such restriction to it for example transaction unclean and also heady stuff just as pork and alcohol. B) ISLÃMIC LAW PERSPECTIVE ON FRANCHISE BUSINESS a) INTRODUCTION

Franchise business is such type of modern businesses that provides, offers and also promises profits. On the one hand, there are also legal provisions which are issued by the government authorities to regulate and also formulate franchise business activities. On the other hand, to protect the people from the injustice and irregularity, it is necessary to study the clarity and meaning of franchise business as viewed from the perspective of Islãmic law. Ijtihad, which is considered the third source of Islãmic law, provides the opportunity for the promotions and developments of Muslims, “idea in the phase of all problems in globalization era.” It also determines and includes the law of franchise business which is based on Islãmic law.

Islãmic law is the law of the God who created whole universe and every creation therein. There is clear statement in the Holy Qurãn and there are also implicit ones behind the written law in the Qurãn. In addition to this, after the explicit and implicit ones, there are all the laws of God that are hidden in the Qurãn. The hidden law that is called the implicit are needed to be sought or explode and also discovered by the qualified and learned human beings with the help of their reasoning. The Explicit laws are such type of law whose

Conference on" Economics and Management of Franchising Networks" Vienna, Austria. 2003.

399 ______nature is called “Zhanni” (The words or phrases which denote more than one meaning and which may be explained and interpreted by different people in different meanings) in Al-Qurãn and Al-Hadith. So, the laws of God which are supposed to employ and hidden behind “Lafz” or the words in Al-Qurãn and Al-Hadith are the human Ijtihad that are eligible to contribute without the limits to follow and direct the development of human society, to fix and determined the laws and address and solve the various issues which arise as a result of created time, science and also technology.

Ijtihad995 is the thought process of human mind who qualifies to struggle, to strike and also endeavor with all the capacity available already in him; to understand and comprehend the fundamental rules of the laws that are contained in the Qurãn and also the rules of common laws that are contained in the Sunnah and then also to formulate them into the outlines and sketch of law that can be implemented and applied in the particular case are in those that the settings are not contained in the two main sources of Islãmic law (Qurãn and Hadith).

Ijtihad provides much opportunities for the development and promotion of Muslim thoughts and ideas in the phase of all the problems on the platform of globalization. There are so many different types of business have emerged and also separate around the world including Pakistan also. A very modern and new type of business that also promises to offer and provide multiple profits in the business that is called “Franchise”. 996

According to the law of the government the definition of Franchise is as “A binding in which one party is given the write to utilize and are use the intellectual property write or inventions or Hallmark of the business owned

995 Saeed, Abdullah. "Ijtihad and innovation in neo‐modernist ISLMIC thought in Indonesia." Islam and Christian‐Muslim Relations 8, no. 3 (1997): 279-295. 996 Turner, John. "From cottage industry to international organisation: the evolution of Salafi-Jihadism and the emergence of the Al Qaeda ideology." Terrorism and Political Violence 22, no. 4 (2010): 541-558.

400 ______by another party to reward based on the requirements set by the other party in the provision and sales of goods or services.”997

Meanwhile in general sense, “A franchise contract is the granting of writes by a franchisor to a franchisee to use the business peculiarities or identifiers in trade; services in the form of products and cultivated forms including corporate identity (Logo, brand, company design, the use of marketing plans, providing an extensive assistance, the time; moment; operating ours, Apparel, and employ appearance) so the business distinguishing characteristics or identifies of the trade; service owned by the franchisee are the same as those owned by the franchisor.”998

From the two definitions mentioned above, they clearly show that there are two parties in franchise contract one is franchisor and other is franchisee. In fact, franchisor is a party or the parties who gives and grants the permission to another party that is called franchisee to use his/her business specifications and also peculiarities (characteristics identifier). On the other hand, the franchisee is such a party who gets and received the permission or the license as a franchisee from the franchisor to use the business peculiarities or such specifications of the franchisor.

Basically, franchise business is called and contract on the method and process of good and service that were distributed to consumers. The franchisor licenses and gives permission to conduct business in the distributions of goods and services under the using the name and identity of the franchisor in a particular and specific area within a certain period. The business must be completed and executed in accordance with the procedures, methods and ways that are set forth by the franchisor. It is also the responsibility of franchisor to provide and manage assistance to the

997 Ngo, Anh D., Dana L. Alden, Nguyen Hang, and Nhuan Dinh. "Developing and launching the government social franchise model of reproductive health care service delivery in Vietnam." Social Marketing Quarterly 15, no. 1 (2009): 71-89. 998 Tauber, Edward M. "Brand franchise extension: new product benefits from existing brand names." Business Horizons 24, no. 2 (1981): 36-41.

401 ______franchisee. As a result of return, the franchisee pays the same amount of money in the form of the initial fee and royalty also.999 b) DISCUSSION

Basically, there are three major components and elements in the franchise system; first, franchisor as the party has the system or methods in his hand in running or a current business; second, franchisee that is called such a party who gets franchise or the system from franchisor so that he will be able to use the right to run and promote the business in developed and specific ways; third, franchise that is called the system of method of business. It is also the business knowledge or specification of franchisor that is sold to franchisee.

Franchise can be distinguished in two forms; product and trade 1000 franchise and business format franchise.1001

Products and trade franchise is called the simplest form of franchise.

Business format franchise is really granting a license or permission by one person to another party. Actually, the business format franchise comprises and consist of:

 Comprehensive business concept of the franchisor.  The start-up method and process and training on all aspects of business management.  Continuous help and assistance and also guidance from the franchisor and in addition to these following items are very necessary from franchisor to franchisee in a franchise business.  Brand name, it includes Logos, equipment and other.

999 Goodwin, Bernard. "Franchising in the Economy: The Franchise Agreement as a Security Under Securities Acts, Including 10b-5 Considerations." Bus. Law. 24 (1968): 1311. 1000 Litz, Reginald A., and Alice C. Stewart. "Research note: trade name franchise membership as a human resource management strategy: does buying group training deliver'true value'for small retailers?" Entrepreneurship: Theory and Practice 25, no. 1 (2000): 125-125. 1001 Tikoo, Surinder. "Franchisor use of influence and conflict in a business format franchise system." International Journal of Retail & Distribution Management 33, no. 5 (2005): 329-342.

402 ______ Business operation and manual.  Support in operation.  Monitoring (from franchisor).  The incorporation of promotion; joint promotion.  Supply  Name of franchisor, name of business activities, name and address of place of business & the name and address of franchisor etc.  The intellectual property rights or inventions.  The requirements must be fulfilled by the franchisee.  The assistance or facilities must be provided from the franchisor.  The rights and obligations of franchisor and franchisee.  Termination, cancellation and extension of franchise contract.1002 c) THE CONCEPT OF ISLÃMIC ECONOMIC SYSTEM

In the sense of an Islãmic system, there are some different and several subsystems such as production, consumption, distribution and support; intermediaries. In the Muslims, it is considered very appropriate that the Islãmic Shariah law and law norms colours the interactions and also transactions only within and also between the subsystems so that they formulate an Islãmic economic system. There are laws and norms which are referred to the above two main principles from which these rules and norms are extracted from the provisions of the Holy Qurãn and also the Hadith of Prophet Muhammad (P.P.U.H). The mains points of the Islãmic Economic System are the following:

 The Islãmic view of treasure and economy:  The teachings of Islãmic Shariah have the view about treasure as trust from God Almighty, as jewellery of life as the test of faith and as a provision for worship.  Treasure should be obtained and get from lawful business and in a manner and process that is lawful. Islãm also forbids the search of treasure

1002 Michael, Steven C. "To franchise or not to franchise: An analysis of decision rights and organizational form shares." Journal of Business Venturing 11, no. 1 (1996): 57-71.

403 ______that can forget about death, zikr Ullah, Salat (Prayer) and Zakat (Charity) and to concentrate the wealth only to be rich.  Islãm also prohibits and forbids illicit business such as RIBÃ (Usury), gambling, trading illicit goods, stealing, robbery, cheating in measurers and weights, vanity and harmful waves and bribery.1003  The values of Islãmic economy:  Islãm encourages its followers to fight and struggles for treasurers in various and different ways that are mentioned lawful in the Qurãn and Hadith and also forbids to use the way of vanity to harm others, use of RIBÃ, maysir (Speculation), GHARAR (Manipulation) etc.  Islãm encourages its followers to work day and night and prohibits the begging.  Each or every individual will get his rights and do not take the others people rights.  Economic disparities must be overcome and removed in every respect.  Individual freedom is accepted and recognized in the large interests of the social life. Islãmic economic system has the basic sense and knowledge that is based on Islãmic Shariah law and norms and there are so many definitions have been given and managed on the economics of Islãm. All the definitions are not totally different from each other’s but they are same in some extent. 1004The most important and comprehensive definition is the following that is stated and narrated by Muhammad Abdullah Al-Arabi:

“Islãmic economics is a set of general economic fundamentals concluding by the Qurãn and sunnah, and is an economic building built on the foundation according to each environment and period”1005

The advantage of Islãmic economic system that the spiritual foundation is always be an integral part of all the practices of the interactions and also transactions between the individuals and also institutions of economic

1003 Choudhury, Masudul Alam. "Principles of ISLMIC economics." ISLMIC Studies 21, no. 2 (1982): 89-107. 1004 Chapra, Dr M. Umar. "Monetary policy in an ISLMIC economy." Money and Banking in Islam. International Centre for Research in ISLMIC Economics, King Abdul Aziz University, Jeddah (1983). 1005 Henry, Clement M., and Rodney Wilson, eds. The politics of ISLMIC finance. Edinburgh: Edinburgh University Press, 2004.

404 ______actors. The issue of this system will take place at that time when the values and norms of Islãm are not fully implemented are only partially implemented in some area.

The system and mechanism and workings of this system is handed over to the economic actors. The basis of this system is on the principle of MUAMALAH. When any muamalah is not prohibited prominently in the Holy Qurãn and also in Hadith, then it is allowed to adopt. The Principle of muamalah are not liked in the area of worship. Similarly, when there is no option and no provisions in the Holy Qurãn and also in Hadith, it is called “BID’AH” and it is strictly prohibited in Islãm and on the basis of this principle, all the practices of economic activities will be filtered in accordance with Islãmic provisions which are stipulated and fixed in the Qurãn and Hadith.1006

Now, if we consider about the franchise element `the contract`, it can easily be stated and elaborated with the help of this argument that the contract is actually and really the development of the forms and shapes of cooperation (Shirkah). and it is taken place and caused with the presence of the franchise contract. Therefore, the franchisor and the franchisee automatically make a simple cooperative relationship for a particular and specific time (according to the contract). Such cooperation and relationship are considered to intend to gain and obtain some profits for both the parties.

Actually, franchise is such type of the contract with some contents that grant and give specific and special rights, power and authority to the franchisee. Furthermore, the franchise is a reciprocal kind of contract for the parties; the franchisee and the franchisor, and they are bound and obliged to fulfill the certain and specific achievements. In such kind of contract, the franchise demands and requires the basic principles of the openness and also prudence. And this agreement is exact in accordance with main pillars and terms of contract very according to the Islãmic Law, i.e.; the Subject of Binding (AL-Àqidain), Object of Binding (MahallulÀqd), Objective of Binding (Maudhuùl Aqd), it makes clear that it is called Ijab and Kabul (Sighat al-

1006 Faizal, P. R. M., A. A. M. Ridhwan, and A. W. Kalsom. "The entrepreneur’s characteristic from al-Quran and al-Hadis." International Journal of Trade, Economics and Finance 4, no. 4 (2013): 191.

405 ______`Aqd), and it denotes the prohibition of the GHARAR Transactions (lack of clarity).1007

A franchise contract is often considered a formal contract because the Franchise Contract is demanded and required to be in writing. This is very compulsory and necessary as a form and symbol of protection for both the parties that are involved and joined in a Franchise Contract. And this is truly in accordance with the basic principle of Qurãn and Sunna, and is called the principle of written (kitabah) mentioned and stated in the Qurãn ٓ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن ٓواْۡإ ذَاۡتَدَايَنت مۡب دَۡي ٍنۡإ َل َٰٓىۡأَ َج ٖلۡ ُّم َس ٗ مىۡ َفۡٱ ۡكت ب و هۡ ۡ َوۡليَ ۡكت بۡبَّۡينَ ك ۡمۡ ۡ َكات ُۢ بۡبۡ ٱۡلعَ ۡد لۡۡ َو َلۡيَأ َبۡ َكات ٌبۡأَنۡيَ ۡكت َبۡ َك َماۡ َعلَّ َمه ۡٱ َّ ّۡلل ۡ َفۡليَ ۡكت ۡبۡ َوۡلي ۡم ل لۡٱلَّ ذيۡ ۡ ۡ ۡ َع َلۡي هۡٱل َح ُّقۡۡ َوليَتَّ قۡٱ َّّۡللَۡ َربَّهۡ ۥۡ َو َلۡيَۡب َخ ۡسۡ مۡنه ۡ َشۡيۡ اۡ َفإ نۡ َكا َنۡٱلَّ ذيۡ َعلَۡي هۡٱل َح ُّقۡۡ َس في ًهاۡأَۡوۡ َض عيفًاۡأَۡوۡ َلۡيَ ۡستَ طي عۡأَنۡي م َّلۡ ه َوۡ َفۡلي ۡم ل ۡلۡ َو ليُّهۡ ۥۡبۡ ٱۡلعَ ۡد لۡۡ َوۡٱ ۡستَ ۡش هد واْۡۡ َش هيدَۡي نۡ منۡ ر َجا ل ك ۡهمۡ َفإ نۡلَّۡ ۡمۡۡيَ كونَاۡ َر ج َلۡي نۡ َف َر ج لۡ َوۡٱ ۡم َرأَتَا نۡۡ م َّمنۡتَ ۡر َض ۡو َنۡ ۡ م َنۡٱل ُّش َهدَآ ءۡۡأَنۡتَ ض َّلۡإ ۡحدََٰى ه َماۡ َفت ذَ ك َرۡإ ۡحدََٰى ه َماۡٱ ۡۡل ۡخ َر َٰ ىۡۡ َو َلۡيَأ َبۡٱل ُّش َهدَآ ءۡۡإ ذَۡاۡ َٰ َماۡد عواْۡ َو َلۡتَ ۡسۡ م ٓواْۡأَنۡتَ ۡكت ب وه ۡ َص غي ًراۡأَۡوۡ َكب ي ًراۡإ َل َٰٓىۡۡأَ َج ل هۡۦ ۡذَ ل كۡ ۡمۡأَۡق َس طۡ عۡندَۡ ٱ َّّلل ۡۡ َوأَۡق َو مۡ لل َّش ََٰهدَة ۡ َوأَ ۡدنَ َٰٓىۡأَ َّلۡتَ ۡرتَاب ٓواْۡإ َّ ٓلۡأَنۡتَ كو َنۡت ََٰج َرةًۡ َحا ض َر ٗةۡت دي رونَ َهاۡ بَۡينَ ك ۡمۡ َف َلۡي َسۡ َعلَۡي ك ۡمۡ جنَا ٌحۡأَ َّلۡتَ ۡكت ب و َه اۡ َوأَ ۡش هد ٓواْۡإ ذَاۡتَبَايَ ۡعتۡ ۡ مۡۡ َو َلۡي َضۡآ َّرۡ َكاتۡ بۡ ُۢ َو َلۡ َش هي دۡ َوإ نۡتَۡفعَل واْۡ َفإ نَّهۡ ۥۡف سو قۡب ك ۡ مۡ َوۡٱتَّق واْۡۡٱ َّهّۡللَۡ َوي عَ ل م ك مۡٱ َّ ّۡلل ۡ َوۡٱ َّّۡلل ۡب ك لۡ َش ۡي ٍءۡ َع لي م٢٢٢ۡۡ

1007 Rosly, Saiful Azhar. Critical issues on ISLMIC banking and financial markets: ISLMIC economics, banking and finance, investments, Takaful and Financial Planning. Dinamas Publishing, 2005.

406 ______anything from it. On the off chance that the person who owes is dim witted or powerless or can't manage himself, at that point his gatekeeper should direct with reasonableness. Have two observers from among your men, and if two men are not there, at that point one man and two ladies from those witnesses whom you like, so that on the off chance that one of the two ladies fail, the other lady may remind her. The witnesses ought not reject when summoned. What's more, don't be fatigued of recording it, alongside its due date, regardless of whether the obligation is little or expansive. That is fairer in ALLAH’s sight, and steadier as proof, and more prone to influence you to free of uncertainty. Be that as it may, on the off chance that it is a spot exchange you are influencing between yourselves, there is no wrongdoing on you, should you not compose it. Have witnesses when you execute a deal. Neither a copyist ought to be made to endure, nor a witness. On the off chance that you do (something hurtful to them), it is unquestionably a wrongdoing on your part, and dread ALLAH. ALLAH instructs you, and ALLAH is All-Knowing in regard of everything. (2:282)

In fact, the franchise really involves the rights to utilize and or also the use of intellectual property rights or invention or typical business or franchise reward granted by itself that is based on the basic requirements and or sale of the goods or the services. This principle is exact in accordance with the principle of respect for cooperation and partnership (Shirkah) in basic principles of Islãmic Civil Law.1008

So, now, it can be argued and explained that the system and method of franchise does not conflict and vary with the Islãmic Law as long as or till that time the object of Franchise Contract is not something like that is prohibited and forbidden in Islãmic L aw (e.g.: the business of purchasing and selling of unlawful or forbidden food items or some kinds of beverages). Then in this situation, the Franchise Contract, shall automatically null and void according to the basic Islãmic Law because it totally against the spirit of Islãmic Law and contrary to the Principles of Islãmic Economics.

1008 Merryman, John Henry, and Rogelio Pérez-Perdomo. The civil law tradition: an introduction to the legal systems of Europe and Latin America. Stanford University Press, 2007.

407 ______Besides, this business has so many other benefits in different forms which play very major and important roles in promoting and enhancing the small and also medium enterprises in Pakistan, both the parties can use the goods and items of domestic production to introduce in the market and also to carry out such activities on this condition that they would not harm and not waste the benefits and interests of all such employers of the small and also the medium enterprises. So, for this reason, in sense and terms of the benefits and interests, franchise business and its agreement has also a positive value and importance for the people. On this basis, this business can be argued and justified according to the Islãmic Law in the light of QURÃN and SUNNA. SO, basically, the system of franchise business is very conducive, helpful, good and advantageous especially for the Franchisees, in that condition especially when they shall be able to be free from the franchisors successfully and run and establish their business independently.

In short, to establish and to create an Islãmic FRANCHISE SYSTEM, it is necessary to implement and to require THE Shariah VALUE SYSTEM as a model as `a business moral filter` that will aim to avoid distortions of the business moral (moral hazard). Actually, the filter is a commitment and promise to be away and stay away from the seven abstinence (Maghrib), i.e.; i. MASIR, all forms of the speculation and also gambling that is supposed to terminate the real sector and also unproductive.

۞يَ ۡسۡل ونَ َكۡ َع نۡٱۡل َخ ۡم رۡۡ َوۡٱۡل َمۡي س ه رۡۡق ۡلۡف ي ه َمآۡإ ۡث مۡ َكب ي رۡ َو َم َٰنَ ف عۡ للنَّا سۡ َوإ ۡث م ه َمآۡ َٰ أَ ۡكبَ رۡ منۡنَّ ۡف ع ه َم اۡۡ َويَ ۡسۡل ونَ َكۡ َماذَاۡي ن فق و هَنۡق لۡٱۡلعَ ۡف َۡوۡ َكذَ ل َكۡي بَي نۡٱ َّّۡلل ۡ َلۡ ك مۡٱ ۡۡلَٰٓيَ تۡۡ َلعَلَّ ك ۡمۡتَتَ َفۡ َّك رو َن٢١٣ۡۡۡ

They get some information about wine and betting. Say, in both there is extraordinary sin, and a few advantages for individuals. Furthermore, their transgression is more noteworthy than their advantage. Furthermore, they ask you with respect to what they ought to spend. Say, The overflow. This is the means by which ALLAH Almighty influences His verses to clear to you, with the goal that you may consider. (2:219)

408 ______

ii) SACRILEGIOUS; the violation in business practices in the form of the decency and also social norms. ۡ ۡ ٱ ۡ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

Read with the name of your Lord who made (everything). He made man from a coagulation of blood. Read, and your Lord is the most benevolent. who conferred learning by methods for the pen. He showed man what he didn't have a clue. (96:1-5) َٰ َوٱتَّبَع واْۡۡ َماۡتَۡتل واْۡٱل َّش َٰيَ طي نۡۡ َع َل َٰىۡ مۡل كۡ سلَۡي ََٰم هَنۡ َو َماۡ َك َف َرۡ س َلۡي ََٰم نۡ َو َل ك َّنۡٱل َّش َٰيَ طي َنۡۡ َك َف رواْۡي عَ ل مو َنۡٱلنَّا َسۡۡٱل س ۡح َرۡۡ َو َمآۡأ ن ز َلۡ َع َلىۡٱۡل َم َل َكۡي نۡۡب بَاب َلۡ ََٰه رۡو َتۡ َو ََٰم رو َتۡ َو َماۡي عَ ل َما نۡ م ۡنۡأَ َحۡ ٍدۡۡ َحتَّ َٰىۡيَق و َ ٓلۡإ نَّ َماۡنَ ۡح نۡف ۡتنَ ةۡ َف َالۡتَ ۡكف ۡهرۡ َفيَتَعَلَّ مو َنۡ مۡن ه َماۡ َماۡ ي َف رق و َنۡب هۡۦۡبَۡي َنۡٱۡل َم ۡر ءۡۡ َو َز ۡو ج هۡۦ ۡ َو َماۡ همۡب َضآ ري َنۡب هۡۦۡ م ۡنۡأَ َح ٍدۡإ َّلۡب إ ۡذ نۡٱ َّ ّللۡۡ َويَۡتَعَلَّ مو َنۡ َماۡيَ ض ُّر ه ۡمۡ َو َلۡيَن َفع هۡ ۡ مۡۡ َو َل َق ۡدۡ َع ل مواْۡ َل َم نۡٱ ۡشتَ َر َٰىهۡ ۡ َماۡ َلهۡ ۥۡف يۡٱ ۡۡلٓ خ َر ةۡۡ َٰ م ۡنۡ َخ َل ٖقۡ َو َلب ۡئ َسۡ َماۡ َش َر ۡواْۡب هۡۦٓۡأَنف َس ه ۡ مۡ َل ۡوۡ َكان واْۡيَ ۡع َل مو َن١١٢ۡۡ

They followed what the devils used to recite in the reign of Sulaiman (Solomon); and it was not Sulaiman who became an infidel, but the devils did become infidels,

Teaching people magic, and what had been sent down to the two angels, Harut and Marut, in Babylon. And these two did not teach anyone without first having said (to him), we are but a trial, so do not go infidel. Then, they used to learn from them that with which they could cause separation between a man and his wife. But they were not to bring harm through it to anyone without the will of ALLAH. They used to learn what harmed them and did no good to them; and they certainly knew that he who buys it has no share in the Hereafter. And, indeed, vile is the thing for which they sold themselves away. If only they knew! (2:102)

409 ______ۡ َٰ ه ۡ ٱ ۡت لۡۡ َمآۡأو ح َيۡإ َلۡيۡ َكۡ م َنۡٱل كتَ بۡۡ َوأَق مۡٱل َّص َل َٰوۡةَۡإ َّنۡٱل َّص َل َٰوةَۡۡتَۡن َه َٰىۡ َع نۡٱل َف ۡح َشۡآ ءۡۡ َوۡٱۡل من َك رۡۡ َو َل ذ ۡك رۡٱ َّ ّللۡۡأَ ۡكبَ رۡ َوۡٱ َّّۡلل ۡيَ ۡع َل مۡ َماۡتَ ۡصنَع و َن٤٥ۡۡ

Discuss (O Prophet) what is uncovered to you of the Book, and build up Salah. Most likely Salah limits one from despicable and fiendish acts. Without a doubt, recognition of ALLAH is the best of all things. ALLAH recognizes what you do. (29:45)

iii) GHARAR; all types of the deals and transactions that are not clear and transparent and it is unclear and easy to potentially harm one or both of the parties. ۡ ۡ َو َلۡۡتَأ كل ٓواْۡأَ ۡم ََٰو َل كمۡبَۡينَ كمۡبۡ ٱۡل َٰبَ ط لۡۡ َوت ۡدل واْۡب َهآۡإ َلىۡٱۡل ح َّكا مۡۡ لتَأ كل واْۡ َف ري ٗقاۡ م ۡنۡ أَ ۡم ََٰو لۡٱلنَّا سۡۡبۡ ٱ ۡ ۡل ۡث مۡۡ َوأَنت ۡمۡتَ ۡع َل مو َن١٢٢ۡۡ

Try not to gobble up each other 's property by false means, nor approach with it the experts to gobble up a bit of the property of the general population wickedly, while you know (that you are treacherous in doing as such). (2:188)

iv) HARAM; all the items and objects that are forbidden in Shariah.

۞يَ ۡسۡل ونَ َكۡ َع نۡٱۡل َخ ۡم رۡۡ َوۡٱۡل َمۡي س ه رۡۡق ۡلۡف ي ه َمآۡإ ۡث مۡ َكب ي رۡ َو َم َٰنَ ف عۡ للنَّا سۡ َوإ ۡث م ه َمآۡ َٰ أَ ۡكبَ رۡ منۡنَّ ۡف ع ه َم اۡ َويَ ۡسۡل ونَ َكۡ َماذَاۡي ن فق و هَنۡق لۡٱۡلعَ ۡف َۡوۡ َكذَ ل َكۡي بَي نۡٱ َّّۡلل ۡ َلۡ ك مۡٱ ۡۡلَٰٓۡيَ تۡۡ َلعَلَّ ك ۡمۡتَتَ َفۡ َّك رو َن٢١٣ۡۡۡ

They get some information about wine and betting. Say: In both there is extraordinary sin, and a few advantages for individuals. What's more, their transgression is more prominent than their advantage. Furthermore, they ask you in the matter of what they ought to spend. Say: The overflow. This is the manner by which ALLAH influences His verses to clear to you, so you may consider. (2:219) ۡ ۡ إ نَّ َماۡ َح َّر َمۡ َع َلۡي ك مۡٱل َمۡيتَةَۡۡ َوۡٱلدَّ َمۡۡ َو َل ۡح َمۡٱل خن زي رۡۡ َو َمآۡأ ه َّلۡب هۡۦۡ ل َغۡي رۡٱ َّ ه ّللۡۡ َف َمۡ نۡ ۡ ٱ ۡضط َّرۡۡ َغۡي َرۡبَا ٖغۡ َو َلۡ َعا ٖدۡ َف َ ٓالۡإ ث َمۡ َع َلۡي هۡإ َّنۡٱ َّّۡللَۡ َغف و رۡ َّر حي ٌم١٣٣ۡۡ

410 ______He has precluded for you carcass, blood, the substance of swine and that whereupon a name of somebody other than 'ALLAH has been conjured. At that point, whoever is constrained by need, neither looking for delight nor transgressing, there is no wrongdoing on him. Verily, ALLAH is Most- Forgiving, Very-Merciful. (2:173) ۡ َو َماۡ َل ك ۡمۡأَ َّلۡتَأ كل واْۡ م َّماۡذ ك َرۡٱ ۡس مۡۡٱ َّ ّللۡۡ َع َلۡي هۡ َوقَ ۡدۡ َف َّص َلۡ َل كمۡ َّماۡ َح َّر َمۡ َع َلۡي ك ۡمۡإ َّلۡ َماۡٱ ۡض ط ر ۡرت ۡمۡۡإ َلۡي هۡ َوإ َّنۡ َكث ي ٗراۡلَّي ضلُّو َنۡب أَ ۡه َوآئ همۡب َغۡي رۡ عۡل ٍمۡإ َّنۡ َربَّ َكۡ ه َوۡأَ ۡع َل مۡ بۡ ٱۡل م ۡعتَ دي َن١١٣ۡۡ

What should make you abstain from eating of that whereupon the name of ALLAH has been summoned, while He has explained to all of you that He has made unlawful for you, aside from that to which you are constrained by outrageous need? Most likely, there are numerous who mislead individuals on the premise of their wants without having information. Most likely, your Lord is the best knower of the individuals who cross the cutoff points. (6:119)

v) RIBÃ; it about all kinds of currency distortions that are really the commodities by the practice of charging extra and additional amount of money called interest on the credit or in loan transactions. ۡ َٰ ٱلَّ ذي َنۡۡيَأ كل و َنۡٱل ربَ َٰواْۡۡ َلۡيَق و مو َنۡإ َّلۡ َك َماۡيَق و مۡٱلَّ ذيۡيَتَ َخبَّ طه ۡٱل َّشۡي َط نۡۡ مۡ َنۡ ۡ َٰ ۡ ۡ ۡ ٱل َم سۡۡذَ ل َكۡب أَنَّ ه ۡمۡ َقال ٓواْۡإ نَّ َماۡٱلبَۡۡي عۡۡ مث لۡٱل ربَ َٰواْۡۡ َوأَ َح َّلۡٱ َّّۡلل ۡٱلبَۡي َعۡۡ َو َح َّر َمۡٱل ربَ َٰواْۡۡ َف َمنۡ َجآ َءهۡ ۥۡ َم ۡو ع َظ ةۡ منۡ َّرب هۡۦۡ َفۡٱنتَ َه َٰىۡۡ َف َلهۡ ۥۡ َماۡ َس َل َفۡ َوأَ ۡم رهۡ ۥٓۡإ َلىۡٱ َّ ه ّللۡۡ َو َم ۡنۡ َعادَۡ َٰٓ َفأ ْو َلئ َكۡأَ ۡص ََٰح بۡٱلنَّا ه رۡۡ ه ۡمۡف ي َهاۡ ََٰخ لد و َن٢٣٥ۡۡ

The individuals who take RIBÃ (usury or intrigue) won't stand however as stands the one whom the evil presence has made insane by his touch. That is on the grounds that they have stated: Sale is however similar to RIBÃ. while ALLAH has allowed deal, and disallowed RIBÃ. In this way, whoever gets an exhortation from his Lord and ceases (from enjoying RIBÃ), at that point what has passed is took into account him, and his issue is dependent

411 ______upon ALLAH. With respect to the ones who return, those are the general population of Fire. There they will remain until the end of time. (2:275) َٰ يَ ۡم َح قۡۡٱ َّّۡلل ۡٱل ربَ َٰواْۡۡ َوي ۡرب يۡٱل َّصدَ َق تۡۡ َوۡٱ َّّۡلل ۡ َلۡي ح ُّبۡ ك َّلۡ َكفَّا ٍرۡأَث ي ٍم٢٣٢ۡۡ

ALLAH annihilates RIBÃ and supports philanthropies, and ALLAH dislikes any evil doubter. (2:276) vi) IHTIKAR; the practice of hoarding of the goods and services and hold monopoly for increasing the prices.

“whoever hoards are a sinner” (Muslim) vii) DANGEROUS; the such kinds of business transactions that are harmful to the individuals and also to communities as well as against the benefits and contrary to the Islãmic Shariah. viii) Narrated by Abu Hurayrah (radiyALLAHu ‘anhu), ALLAH’s Messenger (salALLAHu ‘alayhi wa sallam) said: ‘While a man was going on a way, he saw a thorny branch and removed it from the way and ALLAH became pleased by his action and forgave him for that.’ Then, the Prophet said, ‘Five are martyrs: One who dies of plague, one who dies of an abdominal disease, one who dies of drowning, one who is buried alive (and) dies, and one who is killed in ALLAH’s cause.’ [Al-Bukhari; the Book of the Adhaan]

Abu Hurayrah reported ALLAH’s Messenger (salALLAHu ‘alayhi wa sallam) as saying: While a person was going along the path, he found a thorny branch upon it. He pushed it to a side and ALLAH approved (this action) of his and (as a mark of appreciation) granted him pardon. [Muslim; The Book of Righteousness, Manners and Joining the Ties of Kinship]

Abu Hurayrah reported ALLAH’s Messenger as saying that he saw a person enjoying himself in Paradise because of the tree that he cut from the path which was a source of inconvenience to the people. [Muslim]

412 ______vi) IHTIKAR; the act of storing of the merchandise and ventures and hold restraining infrastructure at expanding the costs.

"Whoever crowds are a miscreant" (Muslim) vii) Dangerous; the sorts of business exchanges that are hurtful to the people and furthermore to groups and additionally against the advantages and in opposition to the Islãmic Shariah. viii) Narrated by Abu Hurayrah (radiyALLAHu 'anhu), ALLAH's Messenger (salALLAHu 'alayhi wa sallam) stated: 'While a man was going on a way, he saw a prickly branch and expelled it from the way and ALLAH ended up plainly satisfied by his activity and excused him for that.' Then, the Prophet stated, 'Five are saints: One who kicks the bucket of torment, one who bites the dust of a stomach sickness, one who passes on of suffocating, one who is covered alive (and) bites the dust, and one who is murdered in ALLAH's motivation.' [Al-Bukhari; the Book of the Adhaan]

Abu Hurayrah revealed ALLAH's Messenger (salALLAHu 'alayhi wa sallam) as saying: While a man was coming the way, he found a prickly branch upon it. He pushed it to a side and ALLAH endorsed (this activity) of his and (as a characteristic of gratefulness) conceded him exonerate. [Muslim; the Book of Righteousness, Manners and Joining the Ties of Kinship]

Abu Hurayrah detailed ALLAH's Messenger as saying that he saw a man having fun in Paradise in light of the tree that he cut from the way which was a wellspring of bother to the general population. [Muslim

5.6 GLIMPSES (ADSPECTUS) OF THE CHAPTER  Interdigitated the meaning, nature, feature and significance of Rights.  Deciphered the Natural and Moral Rights.  Identified the Legal Rights.  Elucidated the Intellectual Property Rights and its concept.  Justified the types of Intellectual Property Rights.

413 ______ Interpreted the difference between a Legal Person and an Artificial Person.  Interlinked the theoretical and historical perspective of Legal Person.  Enhanced the value of legal person in Shariah.  Augmented the book review of MUFTI TAQI USMANI and IMRAN EHSAN KHAN NIAZI in connection with Shariah and Franchise Business.  Presented an analysis report of different problems and issues about Shariah and franchise business.  Enumerated the differences between Legal Person and Natural Person.  Interlocked the different aspects of franchise business with Shariah.  Comprehended the Islãmic Validation of Franchise Business.  Undrilled and practiced the Islãmic Instruments and Tools of finance and business especially with reference to MUSHÃRAKAH, MUDÃRABAH, MURÃBAHAH, SALAM, ISTISNÃ, and IJÃRAH.  Compared the elements of franchise business with Islãmic Economic Rules.  Deducted the Islãmic Perspective from franchise business methods and rules.  Idealized the concept of Islãmic Economics in theoretical and empirical sense of Franchise Business.

414 ______5.7 FINAL CONCLUSION

Choice has been made that this conclusion might not rehash the exchange included in the past sections of this proposition. Or maybe, I will utilize this conclusion to mirror some of my contemplations on the present practices of Islãmic saving money and back in the light of Shariah standards and sorts of agreements and assentions that have been talked about in Franchise Business some time recently. It will be repeated the significance of Shariah in Islãmic managing an account and back at the beginning. It is not only the foundation of present day Islãmic back practices. It is the true Islãmic back, without which, Islãmic fund would not have called Islãmic or Shariah consistent, or whatever terms that may mean grasping the statutes of Shariah. So. the way toward assessing the present practices of ordinary managing an account and endeavoring to discover answers for those financing models, in a way that they consent to the standards of Shariah is seen by some as not simply Islãmic. Since a few people term this as Shariah agreeable items. In any case, over the span of proposing new model of Islãmic monetary instruments, another term has been begat, that is called as Shariah based items. In spite of the fact that no unmistakable depiction has been given to the term`` Shariah compliance``, yet this term might be alluded to Islãmic budgetary items which have been organized with customary items as a source of perspective. At that point Islãmic contracts and understandings in business and particularly in establishment business (may be single or half and half) will be utilized to structure an Islãmically acknowledged item which may carry on (in term of its outcome) also to its ``original`` traditional item. Some term this as replication or impersonation of customary money related items. In the course of the most recent couple of decades, the Muslims have been attempting to rebuild their lives on the premise of Islãmic standards. They unequivocally feel that the political and monetary strength of the West, amid past hundreds of years, has denied them of the celestial direction, particularly in the financial fields. Along these lines, in the wake of gaining political flexibility, the majority are making progress toward the restoration of

415 ______their Islãmic personality to arrange their aggregate life as per the Islãmic lessons. In the monetary field, it was the greatest test for such Muslims to change their money related organizations to get them congruity with the manages of SHARI’AH. In a situation where the whole monetary framework depended on intrigue, it was a considerable assignment to structure the money related organizations on a premium free premise. The general population not familiar with the standards of Shari'ah and its monetary logic some of the time trust that annulling enthusiasm from the banks and budgetary establishments would make them altruistic, as opposed to business, concerns which offer money related administrations without an arrival. Clearly, this is absolutely a wrong suspicion. As indicated by Shari'ah, intrigue free advances are implied for helpful and magnanimous exercises, and not typically for business exchanges, aside from in an extremely constrained range. So far as business financing is concerned, the Islãmic Shari'ah has an alternate set-up for that reason. The Rule is that the individual stretching out cash to someone else must choose whether he wishes to help the inverse party or he needs to share his benefits. On the off chance that he needs to help the borrower, he should repeal from any claim to any extra sum. His main will be secured and ensured, yet no arrival well beyond the vital sum is honest to goodness. Be that as it may, on the off chance that he is propelling cash to share the benefits earned by the other party, he can assert a stipulated extent of benefit really earned by him, and must share his misfortune additionally, in the event that he endures a misfortune. It is subsequently clear that rejection of enthusiasm from money related exercises does not really imply that the agent can't gain a benefit. On the off chance that financing is implied for a business reason, it can be founded on the idea of benefit and misfortune sharing, for which MUSHÃRAKAH and MUDÃRABAH have been outlined since the very commencement of the Islãmic business law. There are, be that as it may, a few segments where financing on the premise of MUSHÃRAKAH or MUDÃRABAH isn't workable or attainable for some

416 ______reason. For such divisions the contemporary researchers have proposed some different instruments which can be utilized with the end goal of financing, as MURÃBAHAH, IJÃRAH, SALAM or ISTISNÃ. Since most recent two decades, these methods of financing are being utilized by the Islãmic banks and money related foundations. Be that as it may, every one of these instruments are not the substitutes of enthusiasm for the strict sense, and it will not be right to assume that they might be utilized precisely in an indistinguishable manner from intrigue is utilized. They have their own arrangement of standards, theory and conditions without which it isn't permitted in Shari'ah to utilize them as methods of financing. Subsequently the obliviousness of their essential idea and pertinent points of interest may prompt befuddling the Islãmic financing with the traditional framework in light of intrigue. The present proposal is a composed gathering of my examination of various Islãmic books and articles that went for giving fundamental data about the standards and statutes of Islãmic back, with unique reference to the methods of financing utilized by the Islãmic banks and non-saving money monetary establishments. It has been endeavored to clarify the fundamental idea basic these instruments, the vital prerequisites for their worthiness from the Shari'ah angle, and the right strategy for their application. I have likewise managed the down to earth issues associated with the utilization of these instruments and their conceivable arrangements in the light of SHARI’AH. Being a researcher and having a thirst in my brain, I examined profoundly the procedure of Islãmic banks in various parts of the world. I likewise went over the purposes of shortcoming in their operations caused predominantly by the absence of clear impression of the pertinent standards and standards of SHARI’AH. This experience and research underscored the requirement for the present proposal in which I have endeavored to talk about the important subject essentially which might be effectively comprehended by a typical peruser and specialist who had no chances to consider the Islãmic monetary standards inside and out. This modest exertion, I trust, will encourage to comprehend the fundamental standards of Islãmic back and the primary purposes of distinction amongst customary and

417 ______Islãmic saving money. May ALLAH Ta'ala acknowledge this modest exertion, respect it with His pleasure and make it helpful for the perusers. This postulation is wanted to be of help to those perusers and analysts who wish to find the Shariah contracts, exchanges, assentions and strategies for organizing the current Islãmic budgetary items and instruments through embracing either a current Islãmic contract or by consolidating at least two thereof. With respect to franchisors, franchisees, representatives, proprietors, coordinators, boss coordinators and business people, this proposal is tried to be direction for maintaining their establishment organizations as indicated by the standards and standards of Islãmic Economics and Shariah. With respect to understudies and addresses, this can should be a reference for Islãmic keeping money and fund related courses. It can likewise be a reference to the general individuals from people in general who are intrigued to find out about the essential standards in the Islãmic contracts and understandings and to acquire a general thought regarding the Islãmic managing an account and money related items. All perusers may understood, that the principal part has quickly examined the definition, which means, engaging, and recorded investigation of business and furthermore establishment business. In second part, the hypothetical, relative and basic overview of establishment laws in Pakistan, Malaysia, and Dubai, its suggestions, and arrangements has been illustrated, talked about and clarified. Also, in third part, the exact and verifiable improvement in Pakistan in the segments o training, sustenance, industry, pieces of clothing, pharmaceuticals, PC programming can be seen and analyzed in detail. Every one of the researchers and specialists of this field may found out, that the fourth part has explained and portrayed the nitty gritty prologue to RIBÃ, its structures, standards of Islãmic exchange, methods of Islãmic saving money and fund, idea of Shariah consistence, and benefits and negative marks of Islãmic Economic System. Part fifth can be considered as portal to the information of Rights, its sorts, nature, highlight, idea of lawful and regular individual, apparatuses and instruments of Islãmic managing an account and back, components of establishment business, and Islãmic point of view upon establishment business. The primary motivation behind this postulation is to talk about the procedure, technique and instrument of establishment

418 ______business and furthermore its components, at that point to Islãmize all the arrangement of establishment, keeping in see the act of Islãmic components (devices, for example, MUSHÃRAKAH, MUDÃRABAH, Murahabah, SALAM, ISTISNÃ, and IJÃRAH. By and by the fundamental and imperative discourse on Shariah, Principles of Islãmic Economics, Principles of Franchise Business and the method of law-production process is accepted to be adequately canvassed in this proposal. May all acclaim be to ALLAH as befits His Majesty and the enormity of His energy; and may favors and peace be upon His Messenger, Muhammad and upon his relatives. Keeping in view the long discussion in above lines, it is clear that `Franchise Contract` is really the development of SHIRKAH`(cooperation), kitoba (principle of writing) as a shape of protection for both the parties. And on the other side, SHIRKAH (principle of appreciation) as a symbol and form of respect and regard for the intellectual property rights and also in accordance with the prohibition and preservation of GHARAR Transactions (lack of clarity) such as the presence of the principles of openness and prudence. Therefore, in the light of detailed discussion, we can easily conclude that the system and method of Franchise Business and also Franchise Agreement is not against the Islãmic Shariah and also not contrary to the Islãmic Law as long as the field or Franchise Business, the systems, the methods, and the mechanism of the cooperation are in accordance with Shariah PRINCIPLES and similarly the absence of any kind of Shariah abstinence in Franchise Business or in Franchise Agreement.

Islãmic principles that are explained and stated above are very balanced and advisable way to ensure the security and welfare of both the employee and the employer on the sound basis of honesty and justice. On one side, the Employer’s investment and money and on the other side, the employee’s labor, both together bring lot of facilities and benefits for other many people and the mass also. Let us examine and take an example of a Chemical Industry or Food Industry. On the one side, The Employer invest his money to establish and make a Chemical Industry or Food Industry, on the other side, the workers get earn their livelihood and also get the salary and the

419 ______other people can easily get their food and the eatables. Everybody is facilitated and benefitted. Setting up an Industry is a social and economic welfare job, because thousands of people can save them from hunger and many other difficulties by getting their salary from the Industry. Similarly, working in a Factory is also considered very helpful and beneficial and also better for Welfare, it helps the people to earn and get money for their self and for their family. Ultimately, with the help of franchisors and employer, two hands of the workers and employees can make something for themselves and for the people. How great and wonderful is this! Only needs a sincere and pure mind and pious and pure intention, Intention and thinking to serve mankind. If it is considered and practiced so, no one is harmed and tortured, everyone is facilitated and benefitted. These benefits are accepted not only for the Muslims but enhanced for all. So, I am of this opinion that it is the duty and responsibility of the Muslim Ummah and Muslim Nation to do such welfare and benefit for the other entire humanity maybe they are Muslims or non-Muslims. As the ALLAH ALMIGHTY says in the Holy Qurãn: ۡ كنت ۡمۡ ۡ َخۡي َر ۡأ َّم ٍة ۡأ ۡخ ر َج ۡت ۡ للنَّا س ۡتَأ م رو َن ۡبۡ ٱۡل َم ۡع رو فۡ ۡ َوتَۡن َه ۡو َن ۡ َع ن ۡٱۡل من َك رۡۡ َوت ۡؤ من و َنۡبۡ ٱ َّ ّللۡۡ َو َل ۡوۡ َءا َم َنۡأَ ۡه لۡٱۡل ك َٰتَ بۡۡ َل َكا َنۡ َخۡي ٗراۡلَّ ه مۡ مۡن ه مۡٱۡل م ۡؤ من و َنۡۡ َوأَ ۡكثَۡ ر ه مۡ ٱۡل ََٰف سق و َن١١١ۡۡۡ

You are the great nation. You are created for the welfare of mankind. You order people to do the right and stop wrong doing. (3: 110)

420 ______5.8 SUGGESTIONS AND RECOMMENDATIONS

For the protection of the right of the people and for the modifications of the rules of franchise business according to the perspective of Islãmic economic rules and laws of Shariah, following suggestions and recommendations are very reasonable, recognizable and feasible:

 The Franchise business activities should be referred to the provisions of the general laws issued from the office of the government authorities.  The Franchise business activities must run in accordance with the provisions of Islãmic economic rules and laws of Shariah.  The Franchise business activities must adopt the values of Islãmic economic laws. The franchise business should adopt the rule “Don’t harm and not to be harmed”. The Shariah supervisory board should work and watch actively the activities of Franchise business in all the associations companies etc.  The ulemas and Islãmic scholars of different schools\ of thought should introduce the Islãmic knowledge especially rules and regulation of Business to such institutions about the mechanism and philosophy of Islãm towards the dealings, deeds and matters of franchise business.  The federal Shariah Court should also play an important role to issue some decision of Islãmic economic rules to formulate the franchise business and it activities according to the perspective of Islãmic Shariah.  The franchise business should maintain the balance between profit and loss.  The franchise business should shake the balance between the franchisor and franchisee’s activities.  The franchise business terms and conditions should be in written form.  The franchise business rules and regulations should be very clear and lucid.  The franchise business agreement should be according to the Islãmic economic law.  The Franchise business termination rules should be self-explanatory.  The franchise business FDD should not be ambiguous and vague.

421 ______ In the dealing of Franchise business all the terms and conditions should be according to the teachings and spirit of Islãm. As ALLAH says in the Holy Qurãn: ۡ ۡ َو َلۡۡتَۡق َرب واْۡ َما َلۡٱليَت ي مۡۡإ َّلۡبۡ ٱلَّت يۡ ه َيۡأَ ۡح َس نۡ َحتَّ َٰىۡيَۡبل َغۡأَ شدَّهۡ ۥ ۡ َوأَۡوف واْۡبۡ ٱلعَ ۡه ه ۡدۡ إ َّنۡٱۡلعَ ۡهدَۡۡ َكا َنۡ َم ۡسۡو ٗل٣٤ۡۡ

Do not go near the property of an orphan, except in a manner that is good, until he comes to his maturity. And fulfill the covenant. Surely, the covenant shall be asked about (on the Day of Reckoning). (17:34) ٓ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن ٓواْۡأَۡوف واْۡبۡ ٱۡلع ق و ۡدۡأ حلَّ ۡتۡ َل كمۡبَ هي َمة ۡٱ ۡۡلَۡن َٰعَ مۡۡإ َّلۡ َماۡي ۡتلَۡ َٰىۡۡ َع َلۡي ك ۡمۡ َغۡي َرۡ م ح ل يۡٱل َّصۡي دۡۡ َوأَنت ۡمۡ ح ر ٌمۡإ َّنۡٱ َّّۡللَۡيَ ۡح ك مۡ َماۡي ريد ١ۡۡ

O you who believe, fulfill the contracts. The animals from the cattle have been made lawful for you, except that which shall be read over to you, provided that you do not treat hunting as lawful while you are in Ihram. Surely, ALLAH ordains what He wills. (5:1)

The Holy Prophet (P.P.U.H) said, “Muslim must abide by their agreement” (Al-Tirmidi)

 All the employers, all the employees and all the staff members and workers work according to the scheme and plan of Islãmic business rule and that is to consult with one another. Every matter, issue and problem etc. with other parties.

َوٱلَّ ذي َنۡۡٱ ۡستَ َجاب واْۡۡ ل َرب ه ۡمۡ َوأَ َقا مواْۡٱل َّص َل َٰوةَۡۡ َوأَ ۡم ر ه ۡمۡ شو َر َٰىۡبَۡيۡنَ ه ۡمۡ َو م َّماۡ َر َز ۡق َٰنَ ه ۡمۡۡ ي ن فق و َن٣٢ۡۡ

and those who have responded to their Lord (in submission to Him), and have established Salah, and whose affairs are (settled) with mutual consultation between them, and who spend out of what We have given to them. (42:38) ۡ إ نَّ َماۡٱل م ۡؤ من و َنۡۡإ ۡخ َو ةۡ َفأَ ۡص ل حواْۡبَۡي َنۡأَ َخ َوۡي ك ۡ مۡ َوۡٱتَّق واْۡۡٱ َّّۡللَۡ َلعَلَّ ك ۡمۡت ۡر َح مو َن١١ۡۡ

422 ______All believers are but brothers, therefore seek reconciliation between your two brothers, and fear ALLAH, so that you may be blessed with mercy. (49:10)

 The owners of the companies, franchisors and entrepreneurs must care for the wages and the security of Jobs for their workers at every cost. And the same response is requiring from the workers keeping in view the basic theme in Islãm. ۡ ْ َٰ ۡ َّ َ ۡ ۡ َفليَ ۡعب د واۡ َر َّبۡ َهذَاۡٱلبَۡي ت٣ۡۡۡٱل ذ ٓيۡۡأطعَ َم همۡ منۡ جو ٖعۡ َو َءا َمنَ همۡ م ۡنۡ َخ ۡو ُۢ ف٤ۡۡ

They must worship the Lord of this House. (106:3) who gave them food against hunger, and gave them security against fear. (106:4)

 All the owners, franchisors, company owners, factory owners, employees, franchisees and their workers must be honest in their duties and obligations according to the teaching of the Islãm in the field of business and should not cheat and deceive one another.

َوۡي لۡۡ ل ۡلۡ م َط ف في َن١ۡۡۡٱلَّ ذي َنۡۡإ ذَاۡٱ ۡكتَال واْۡۡ َع َلىۡٱلنَّا سۡۡيَ ۡستَۡوف و َن٢ۡۡۡ َوإ ذَاۡ َكال و ه ۡمۡأَوۡ َٰٓ َّو َزن و ه ۡمۡي ۡخ س رو َن٣ۡۡۡأَ َلۡيَ ظ ُّنۡأ ْولَئ َكۡأَنَّ همۡ َّمۡبع وث و َن٤ۡۡ ليَ ۡو ٍمۡۡ َع ظيٖم٥ۡۡۡيَ ۡو َمۡ ۡ ۡ يَق و مۡٱلنَّا سۡۡ ل َر بۡٱل َٰعَ َل مي َن٢ۡۡۡ َك َّ ٓالۡۡإ َّنۡ ك َٰتَ َبۡٱلف َّجا رۡۡ َل فيۡ س جي ٖن٣ۡۡ

Woe to the curtailers. who, when they measure something to receive from people, take it in full. and when they measure or weigh something to give it to them, give less than due. Do they not think that they have to be raised up? On a Great Day, the Day when all the people will stand before the Lord of the worlds? Never! (i.e. they should never act in such a way.) Indeed, the record of deeds of the sinners is in Sijjin. (83:1-7)

The Holy Prophet (P.P.U.H) said, “whoever cheats us is not of us.” (Muslim, Tirmidi, Abu Dawood"

 All the employers, owners and managers of the different organizations must be careful about the wages of the employees and workers on the exact and fixed time as the Islãmic business rules teaches us.

423 ______As the Holy Prophet (P.P.U.H) said, “Gives the wages of employ before it sweat dry.” (ibn Majah Hadith no. 2468).

 At the stages and platform of Franchise business, it should be kept in mind that the right amount of the wages of the workers should be paid so that it should easily modified into the prospect of Islãmic Shariah. َٰ َوإ َل َٰىۡۡ َم ۡديَ َنۡأَ َخا ه ۡمۡ شعَۡيٗب اۡ َقا َلۡۡ َٰيَ َق ۡو مۡٱ ۡعب د واْۡۡٱ َّّۡللَۡ َماۡ َل كمۡ م ۡنۡإ َل ٍهۡ َغۡي رهۡ ۥهۡ َق ۡدۡ َجۡآ َء ۡت كمۡ بَي نَ ةۡ منۡ َّرب ك ۡهمۡ َفأَۡوف واْۡٱۡل َكۡي َلۡۡ َوۡٱۡل مي َزا َنۡۡ َو َلۡتَۡب َخ سواْۡٱلنَّا َسۡۡأَ ۡشيَآ َء ه ۡمۡ َو َلۡۡت ۡف سد واْۡ َٰ َٰ ف يۡٱ ۡۡلَۡ ۡر ضۡبَ ۡعدَۡإ ۡص َل ح َه اۡذَ ل ك ۡمۡ َخۡي رۡۡلَّ ك ۡمۡإ نۡ كنت مۡ ُّم ۡؤ من ي َن٢٥ۡۡ

And to Madyan (We sent) their brother Shu'aib. He said, O my people, worship ALLAH. You have no god other than Him. There has come to you a clear sign from your Lord. Give the measure and weight in full, and do not make people short of their things, and do not make mischief on the earth after it has been set in order. That is good for you, if you are believers. (7:85)

The Holy Prophet (P.P.U.H) said, “I am the adversary of a man who employs a worker but does not pay rightful wages.” (Bukhari Hadith no. 2114)

 The principle of Islãmic economic rule of not giving work load more than the ability of the worker should be familiarized among the workers and also people in the dealings of franchise business.

As the Holy Prophet (P.P.U.H) said, “Do not give them (workers) workload more than their ability. If workload is heavy then help them.” (Targib & Tarhib, Ibn Habban)

 According to the Islãmic tools and instruments the Franchisors should make the work of their workers easy with help of providing training arranging tools and managing equipment’s in their field of business.

As the Holy Prophet (P.P.U.H) said, “the more you make work easy for your employ, the more you will be rewarded by ALLAH.” (Targib & Tarhib, Ibn Habban)

424 ______ All the owners and workers adopt the good behavior in the dealing of business at every place at every corner.

As the Holy Prophet (P.P.U.H) said, “one of the actions that will be beneficial in your life is your good behavior with people working under you.” (Ahmad, Ibn Majah, Tirmidi)

 The principle of Islãm and Islãmic business that is general welfare of the employs should be kept in mind in the dealing of franchise business and think that it is the moral responsibility of the employers. ۡ ٱلَّ ذي َنۡۡيَۡب َخل و َنۡ َويَأ م رو َنۡٱلنَّا َسۡۡبۡ ٱۡلب ۡخ لۡۡ َويَ ۡكت مو َنۡ َمآۡ َءاتََٰى ه مۡٱ َّّۡلل ۡ منۡ َفۡ ۡض ل هۡ ۡۦ ۡ َوأَ ۡعتَ ۡدنَاۡ لۡل ََٰك ف ري َنۡ َعذَاٗباۡ ُّم هيٗنا٣٣ۡۡ

Those who are miserly and bid people to be miserly, and conceal what ALLAH has given them of His grace — and We have prepared for the disbelievers a humiliating punishment. (4:37)

 All the workers and employs should do their work and duty and earn their livelihood with great struggle and effort with the considerations “Work” as worship because it is basic teachings of Islãmic business rule and also of Islãm.

َفإ ذَاۡق ضيَ تۡٱل َّص َل َٰوةۡ ۡ َفۡٱنتَ ش رواْۡۡف يۡٱ ۡۡلَ ۡر ضۡۡ َوۡٱۡبتَغ واْۡۡ منۡ َف ۡض لۡٱ َّ ّللۡۡ َوۡٱ ۡذ ك رواْۡۡ ٱ َّّللَۡۡ َكث ي ٗراۡلَّعَلَّ ك ۡمۡتۡ ۡف ل حو َن١١ۡۡ

Then once the Salah is over, disperse in the land, and seek the grace of ALLAH, and remember ALLAH abundantly, so that you may be successful. (62:10)

As Holy Prophet (P.P.U.H) said, “Best earning is what is earned by the labor of hand with sincerity.” (Ahmad, Hadith no. 8393)

 In all the companies and associations, it should be taught and make known to the employ and workers to be loyal to their employer and owner also. According to the Islãmic Shariah.

425 ______As Holy Prophet (P.P.U.H) said, “when an employ look to the welfare of the employers and worship ALLAH, he has two rewards for him” (Muslim. Book 15, chapter 11, Hadith no 4097)

 All the employs and workers should not neglect their duties and work, not they should harm their employer whether they see or not. As ALLAH says in Qurãn:

َوق لۡۡٱ ۡع َمل واْۡۡ َف َسيَ َرىۡٱ َّّۡلل ۡ َع َم َل ك ۡمۡ َو َر سول هۡ ۥۡ َوۡٱۡل م ۡؤ من و هَۡنۡ َو َست َردُّو َنۡإ َل َٰىۡ ََٰع ل مۡ ٱۡل َغۡي بۡۡ َوۡٱل َّش ََٰهدَةۡ ۡ َفي نَب ئ كمۡب َماۡ كنت ۡمۡتَ ۡع َمل و َن١١٥ۡۡ

Say: Do (what you do); ALLAH will see your deed, as will the Messenger and the believers. And you shall be returned to the Knower of the Seen and the Unseen, then He will tell you what you have been doing. (9:105)

 To teach the people the real spirit of Islãmic teaching philosophy of Islãmic business and the phenomenon of Islãmic rule and rational and justification of the perspective of Islãmic system of business as a model and sample for the franchise business. The rule of arbitration and to make peace between the parties’ employers, workers, managers and all others in different field of life should be adopted with references to the verses of Holy Qurãn which are given in the following:

َوإ نۡ َطآئ َفتَا نۡ م َنۡٱۡل م ۡؤ من ي َنۡۡٱ ۡقتَتَل واْۡۡ َفأَ ۡص ل حواْۡبَۡينَ ه َم هاۡ َفإ ُۢنۡبَ َغ ۡتۡإ ۡحدََٰۡىۡ ه َماۡ َع َلىۡ َٰ ٱ ۡۡل ۡخ َر َٰىۡۡ َف َقت ل واْۡٱلَّت يۡتَۡب غيۡ َحتَّ َٰىۡتَ ف ٓي َءۡإ َل َٰٓىۡأَ ۡم رۡٱ َّ ّللۡۡ َفإ نۡ َفآ َء ۡتۡ َفأَ ۡص لۡ حواْۡبَۡينَ ه َماۡ ۡ ه ۡ بۡ ٱلعَ ۡد لۡۡ َوأَۡقۡ س ط ٓواْۡۡإ َّنۡٱ َّّۡللَۡي ح ُّبۡٱل م ۡق س طي َن٣ۡۡۡ

If two groups of the believers fight each other, seek reconciliation between them. And if one of them commits aggression against the other, fight the one that commits aggression until it comes back to ALLAH‘s command. So, if it comes back, seek reconciliation between them with fairness, and maintain justice. Surely ALLAH loves those who maintain justice. (49:9)

426 ______َوأَ نۡۡٱ ۡح كمۡبَۡينَ همۡب َمآۡأَن َز َلۡٱ َّّۡلل ۡ َو َلۡتَتَّب ۡعۡأَ ۡه َوآ َء ه ۡمۡ َوۡٱ ۡحذَ ۡر ه ۡمۡۡأَنۡيَ ۡفۡت ن و َكۡ َع ُۢنۡۡ بَ ۡع ضۡ َمآۡأَن َز َلۡٱ َّّۡلل ۡإ لَۡي هَكۡ َفإ نۡتَ َولَّ ۡواْۡ َفۡٱ ۡع َل ۡمۡۡأَنَّ َماۡي ريد ۡٱ َّّۡلل ۡأَنۡي صيبَ همۡبۡ بَ ۡع ضۡ ذ ن وب ه ۡ مۡ َوإ َّنۡ َكث ي ٗراۡ م َنۡٱلنَّا سۡۡ َل ََٰف سق و َن٤٣ۡۡ

We order you to judge between them according to what ALLAH has sent down. Do not follow their desires, and beware of them, lest they should turn you away from some of what ALLAH has sent down to you. If they turn away, be assured that ALLAH intends to make them suffer for some of their sins. Surely, many of the people are sinners. (5:49) ۡ ۡ َو َلۡۡتَأ كل ٓواْۡأَ ۡم ََٰو َل كمۡبَۡينَ كمۡبۡ ٱۡل َٰبَ ط لۡۡ َوت ۡدل واْۡب َهآۡإ َلىۡٱۡل ح َّكا مۡۡ لتَأ كل واْۡ َف ري ٗقاۡ م ۡنۡ أَ ۡم ََٰو لۡٱلنَّا سۡۡبۡ ٱ ۡ ۡل ۡث مۡۡ َوأَنت ۡمۡتَ ۡع َل مو َن١٢٢ۡۡ

Do not eat up each other ‘s property by false means, nor approach with it the authorities to eat up a portion of the property of the people sinfully, while you know (that you are unjust in doing so). (2:188) ٓ ۞ َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡ كون واْۡ َق ََّٰو مي َنۡبۡ ٱۡل ق ۡس طۡۡ ش َهدَآ َءۡ َّّلل ۡ َو َل ۡوۡ َع َل َٰٓىۡأَنفۡ سۡ ك ۡمۡأَ وۡ ٱۡل ََٰو لدَۡي نۡۡ َوۡٱ ۡۡلَۡق َرب ي َۡنۡإ نۡيَ ك ۡنۡ َغن يًّاۡأَۡوۡ َف قي ٗراۡ َفۡٱ َّّۡلل ۡأَۡو َل َٰىۡب ه َم هاۡ َف َالۡتَتَّب ع واْۡٱۡل َه َو َٰٓىۡۡ ۡ أَنۡتَ ۡع دلۡ واْۡۡ َوإ نۡتَل وۡۥٓاْۡۡأَۡوۡت ۡع ر ضواْۡ َفإ َّنۡٱ َّّۡللَۡ َكا َنۡب َماۡتَ ۡع َمل و َنۡ َخب ي ٗرا١٣٥ۡۡ

O you who believe, be upholders of justice - witnesses for ALLAH, even though against (the interest of) your selves or the parents, and the kinsmen. One may be rich or poor, ALLAH is better caretaker of both. So, do not follow desires, lest you should swerve. If you twist or avoid (the evidence), then, ALLAH is all-aware of what you do. (4:135)

In this connection the Holy Prophet (P.P.U.H) also said, “The people before you were destroyed because they use to inflict the legal punishment on the poor and forgive the rich.” (Al-Bukhari Vol. 8, Book 88, No 778)

 The sense of God-conscious (God fearing) also known in Arabic as (Taqwah) should be introduced and instilled into the minds of the franchisors, franchisee’s, owners, entrepreneurs, supervisors, managers etc. for the

427 ______adaptation of the Islãmic perspective in the field of franchise business in the all walks of life. Such as political, economic, ethical and social etc. because the Taqwah is the basis of every of Goodness and virtues, according to the Qurãn and Hadith and all the school of thoughts. As ALLAH says in Qurãn:

َفإ ذَاۡبَ َل ۡغ َنۡأَ َج َل ه َّنۡ َفأَ ۡم س كو ه َّنۡب َم ۡع رو ٍفۡأَۡوۡ َفا رق و ه َّنۡب َم ۡع رو ٖفۡ َوأَ ۡش هد واْۡذَ َو ۡيۡ َٰ َع ۡد ٖلۡۡ من ك ۡمۡ َوأَق ي مواْۡٱل َّش ََٰهدَةَۡۡ َّ ّللۡذَ ل ك ۡمۡي و َع ظۡب هۡۦۡ َمنۡ َكا َنۡي ۡؤ م نۡبۡ ٱ َّ ّللۡۡ َوۡٱۡليَ ۡوۡ مۡۡ ٱ ۡۡلٓ خ رۡۡ َو َمنۡيَتَّ قۡٱ َّّۡللَۡيَ ۡجعَلۡلَّهۡ ۥۡ َم ۡخ َر ٗجا٢ۡۡ َويَ ۡر ز ۡقهۡ ۡ م ۡنۡ َحۡي ثۡ َلۡيَ ۡحتَ س بۡ َو َمنۡ يَتَ َو َّك ۡلۡ َع َلىۡٱ َّ ّللۡۡ َف ه َوۡ َح ۡسبۡ هۡ ۥٓۡۡإ َّنۡٱ َّّۡللَۡ َٰبَ ل غۡأَ ۡم ر هۡۦ ۡ َق ۡدۡ َجعَ َلۡٱ َّّۡلل ۡ ل ك لۡ َش ۡي ٖءۡ َقۡ ۡد ٗراۡ َٰ ٣ۡذَ ل َكۡۡأَ ۡم رۡٱ َّ ّللۡۡأَن َز َلهۡ ۥٓۡإ َلۡي ك ۡ مۡ َو َمنۡيَتَّ قۡٱ َّّۡللَۡي َك ف ۡرۡ َعۡنه ۡ َسۡي ات هۡۦۡ َوي ۡع ظ ۡمۡ َلۡهۡ ۥٓۡأَ ۡج ًراۡ ٥ۡ

So, when they (the divorced women) have (almost) reached their term, then either retain them with fairness, or part with them with fairness. And make two just men from among you witnesses (of your either decision). And (O witnesses,) keep your testimony upright for the sake of ALLAH. That is what anyone who believes in ALLAH and the Last Day is exhorted to do. Whoever fears ALLAH, He brings forth a way out for him. and provides him (with what he needs) from where he does not even imagine. And whoever places his trust in ALLAH, He is sufficient for him. Surely ALLAH is to accomplish His purpose. ALLAH has set a measure for everything. This is the command of ALLAH that He has sent down to you. And whoever fears ALLAH, He will write off his evil deeds, and will give him a huge reward. (65:2,3,5)

428 ______

BIBLIOGRAPHY

429 ______BIBLIOGRAPHY

BOOKS & ARTICLES

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 Ann Dugan, Franchising One Hundred One, Association of Small Business Development Centre, US, 1998  Anttonen, Noora, Mika Tuunanen, Ilan Alon (2005), "The International Business Environments of Franchising in Russia," Academy of Marketing Science Review, (5), 1-18.  B. Kissikov "Franchising in Kazakhstan", Central-Asian Association of Franchising and Licensing-Association/Franchise-laws-in-India- n863929  Brief History (Franchise)

 Clive Sawyer, How to Franchise Your Business, UK, 2011

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 EM Tauber, Brand Franchise Extension: New Product Benefits from Existing Brand Names, Elsevier, Vol. 24, Issue2, 1981, Netherlands  Erwin J. Keup & Peter E. Keup, Franchise Bible, Entrepreneur Press, 2012  EU Franchise Disclosure peralaw.com  Fox, W.F., and M.N. Murray. 2004. "Do Economic Effects Justify the Use of Fiscal Incentives?" Southern Economic Journal, vol. 71, no. 1, pp. 78-92.  Franchise disclosure in Europe ffw.com  Franchising Code of Conduct

 Harold Kestonbaum & Adina M. Genn, So You Want to Franchise Your Business, Jere L. Calmes, Publisher, USA, 2008  Healeas, S., Purdy, D., Stanworth, C., Watson, A.2004. Franchising as small business growth strategy: A resource based view organisational development: International small business journal,22(6), pp 539-599  Hope, John B., and Patrick C. Mackin. "The Relationship Between Employee Turnover and Employee Compensation in Small

433 ______Business." Small Business Research Summary 308 (2007): 1-44. Web. 21 Mar. 2012.  Howard, T. (1996). "Howard Johnson: Initiator of franchised restaurants".Nation's Restaurant News 30 (2): 85–86.  However, the recent Pappa Johns case shows that the courts will expect clear disclosure of relevant facts by the franchisor before the franchisee signs up and the recent Yam Seng case clearly establishes that the franchise relationship involves a duty of good faith. The Trading Schemes Act also regulates Multi tier franchises Franchise agreements subject to European Code of ethics (blog)  Issie Lapowsky (May 13, 2010). "How to Start a Home-Based Franchise". Inc. (magazine) (Mansueto Ventures). Retrieved August 13, 2012.

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434 ______ March 2015.

 Micheal Seid & Dave Thomas, Franchising for Dummies, Wiley Publishing Inc, 2010  N Anttonen, M Tuunanen, I Alon, The International Business Environment of Franchising in Russia, Academy of Marketing, 2005, USA  Needham, Dave (1996). Business for Higher Awards. Heinemann.  Patterns of Internationalization for Developing Country Enterprises (Alliances and Joint Ventures) United Nations Industrial Development Organization, Vienna, 2008,ISBN 978-92-1-106443-8, pp 65  Patterns of Internationalization for Developing Country Enterprises (Alliances and Joint Ventures) United Nations Industrial Development Organization, Vienna, 2008,ISBN 978-92-1-106443-8,  Richbell, S. M., Wardle, P., and Watts, H. D., 2006. Owner-managers and Business Planning in the Small Firm. International Small Business Journal, 24 (5), pp.496-514.

 Rick Bisio, The Educated Franchisee, Bascom Hill Publisher, US, 2011  RS Thompson, The Franchise Life Cycle and The Penrose Effect, Journal of Economic Behaviour & Organization, Vol 24, Issue2, 1994, Netherlands  S Tikoo, Franchisor Use of Influence and Conflict in A Business Format Franchise System, International Journal of Retail & Distribution Management, 1990, USA  See also Spain Chapter of Getting the Deal Through. Franchise 2011 byIgnacio Alonso  Senior, Norah. "Small businesses need to see exporting as a viable option and 'think global'". The Guardian. Retrieved 2014-07-11.  Shailer, G. Capitalists and Entrepreneurs in Owner-managed Firms. International Small Business Journal 12(3) April-June 1994: 33–41.

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DICTIONARIES AND ENCYCLOPEDIAS

 A Dictionary of the English Language by Samuel Johnson  Black's Law Dictionary, a law dictionary  Brewer's Dictionary of Phrase and Fable  Canadian Oxford Dictionary  Century Dictionary  Chambers Dictionary

436 ______ Collins English Dictionary  Concise Oxford English Dictionary  Encyclopedia 07 Social Sciences Vol3; The Macnillan Company, New York, Print in USA  Encyclopedia Brittanica, Vol7. ED. 17687; E.B. Ltd.London  Encyclopedia of Islãm, Vol.ll; Durrani, F.K. Khan.1936  Encyclopedia of Religion and Ethics; Hasring’s  EncyclopediaBiblica; Cheyne and Blake.London  Jamal-ud-Din bin Muhammad al-Misri. Lisan-ul-Arab  Logman Dictionary of Contemporary English, 2nd Ediition; Summers, D. London: Logman, 1987  Logman Pronunciation Dictionary, 2nd Edition; Wells, J.C. London; First published in 1990  Longman Dictionary of Contemporary English / Longman  Macmillan Dictionary  Macquarie Dictionary, a dictionary of Australian English  Merriam-Webster, a dictionary of American English  New Oxford Dictionary of English  Oxford Dictionary of English  Oxford English Dictionary  Random House Dictionary of the English Language  The American Heritage Dictionary of the English Language  The Cambridge international Dictionary of English.Proctor, P. Cambridge: Cambridge University Press, 1995  The American College Dictionary by Clarence L. Barnhart

NEWS PAPERS

 Business Recorder  Daily dawn  Daily times  Financial Times  International herald tribune  Metro London

437 ______ Middle East observer  New York Times, February  Pakistan Times  The Atlantic Online  The frontier posts  The Morning Star Daily  The Nation  The News  The Post  The Province  The Sunday Time  The Toronto Star  The Vancouver Sun  Toronto Star  USA Today

MAGAZINES AND JOURNALS

 American Economic Journal  American Economic Review  Business Economics  Computational Economics  European Political Economy Review  Explorations in Economic History  Imperialism  International journals on Multicultural societies(IJMS), Unesco  Journal of Comparative Economics  Journal of Development Economics  Land Economics  Macroeconomic Dynamics  Middle east review of international Affairs  Monthly impact International  National Institute Economic Review  Policy perspective

438 ______ Post-Communist Economies  Quarterly Journal of Economics  Review of Austrian Economics  Science and Society  The Economist

WEBSITES:

 http://media.proquest.com/media/pq/classic/doc/3121621781/f mt/pi/rep/NONE?hl=&cit%3Aauth=Armstrong%2C+Craig+E&cit %3Atitle=Competence+or+flexibility%3F+Survival+and+growth +implications+of+...&cit%3Apub=Journal+of+Strategy+and+Ma nagement&cit%3Avol=6&cit%3Aiss=4&cit%3Apg=377&cit%3A date=2013&ic=true&cit%3Aprod=ABI%2FINFORM+Complete& _a=ChgyMDE1MDQxNTAyMjcwOTIzMzo1NDg4NjYSBTk1MzI 3GgpPTkVfU0VBUkNIIg0xNDMuMjAwLjEzLjMxKgUzOTMxMzI KMTQ0OTM5OTkxODoNRG9jdW1lbnRJbWFnZUIBMFIGT25s aW5lWgJGVGIDUEZUagoyMDEzLzEwLzAxcgoyMDEzLzEyLz MxegCCASlQLTEwMDAwMDEtMjk1MTgtQ1VTVE9NRVItMTA wMDAwMDgtMTExMDczNpIBBk9ubGluZcoBdk1vemlsbGEvN S4wIChNYWNpbnRvc2g7IEludGVsIE1hYyBPUyBYIDEwXzEw XzIpIEFwcGxlV2ViS2l0LzYwMC4zLjE4IChLSFRNTCwgbGlrZ SBHZWNrbykgVmVyc2lvbi84LjAuMyBTYWZhcmkvNjAwLjMu MTjSARJTY2hvbGFybHkgSm91cm5hbHOaAgdQcmVQYWlkq gIoT1M6RU1TLVBkZkRvY1ZpZXdCYXNlLWdldE1lZGlhVXJsR m9ySXRlbcoCD0FydGljbGV8RmVhdHVyZdICAVniAgFO8gIA &_s=isTHBF%2B8fhiXE4YF6oLH5yZLbn0%3D#statusbar=1&z oom=110  http://works.bepress.com  http://www.allbusiness.com/legal/international-law/8887771- 1.html  http://www.articles.washington.com  http://www.businessdictionary.com  http://www.census.gov/econ/sbo/getdata.html

439 ______ http://www.duhaime.org  http://www.echr.org  http://www.eurofranchiselawyers.com/pdf/Comparative_Table_ 08_06_09%20printable.pdfEuroFranchiseLawyers.com  http://www.franchise.org/franchise-news- detail.aspx?id=33190franchise.org  http://www.humanrights.is  http://www.iachr.org  http://www.Islãmhouse.com  http://www.kentlaw.iit.edu  http://www.maslynlaw.com/wp- content/uploads/2011/09/Supplier-Paper.pdf  http://www.mubashirnazir.org  http://www.newworldencyclopedia.org  http://www.nolo.com/legal-encyclopedia/article- 29512.htmlnolo.com  http://www.ourcivilisation.com  http://www.sba.gov/community/blogs/guest-blogs/industry- word/what-franchise-broker  http://www.searchtruth.com  http://www.un.org  http://www.usconstitution.net  www.alhassanain.com  www.diis.dk  www.iclars.org  www.oic-oci.org  www.usc.edu

440 ______

APPENDIX

441 ______INDEX

LIST OF AYAT

SURAH NAME VERSE PAGE NO. OF TEXT NO. THESIS َو َلۡۡت ۡؤت واْۡٱل ُّس َف َهآ َءۡۡأَ ۡم ََٰو َل ك مۡ... SURAH Al-NISA (04) 05 4 َفإذَاۡق ضيتۡٱلص َلوةۡ ... SURAH Al-JUMAH 10 4 َ َّ َٰ (62) ۡ SURAH Al-NOOR (24) 37 4,267 ر َجا لۡۡ َّلۡت ل هي ه ۡمۡت ََٰج َر ةۡ... ۡ SURAH 275 252,263,410 ٱلَّ ذي َنۡۡيَأ كل و َنۡٱل ربَ َٰواْۡۡ َلۡ... AL-BAKARAH (02) يَ ۡم َح قۡۡٱ َّّۡلل ۡٱل ربَ َٰواْۡۡ َوي ۡرب ي... 252,411 276

َٰٓيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡٱتَّق واْۡ... 253 278

SURAH AL-IMRAN 130 َٰٓ َ َّ ْ َ 253 يَأيُّ َهاۡٱل ذي َنۡۡ َءا َمنواۡلۡ... (03)

SURAH Al-NISA (04) 161 َوأَ ۡخ ذ ه مۡۡٱل ربَ َٰواْۡۡ َو َق ۡدۡن هواْۡ... 253 SURAN AL-ROM (30) 39 َو َماۡٓۡ َءاتَۡيت مۡ منۡ رٗباۡ ل يَ ۡرب... 253 SURAH AL-BAKARAH 29 َّ َ َ 263,268 ه َوۡۡٱل ذيۡ َخل َقۡلكمۡ َّماۡف ي... (02)

SURAH AL-ZUKHRUF 13 ۡ ْ َ 264 لتَستَ وۥاۡۡ َعل َٰىۡظ هو ر هۡۦۡث َّمۡ... (43)

SURAH AL-AN’AM 164 ۡ َ ۡ َۡ ٗ 264 قلۡۡأ َغي َرۡٱ َّ ّللۡۡأب غيۡ َرب ا... (06) ٓ SURAH AL-NISA (04) 135 265 َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡ كون و... SURAH AL-AN’AM 115 ۡ َ 265 َوتَ َّمتۡۡك ل َم تۡ َرب َكۡ... (06) ۡ SURAH AL-HUD (11) 85 265,423 َو َٰيَ َق ۡو مۡۡأَۡوف واْۡٱل م ۡكيَا َلۡ... ٓ SURAH AL-NISA (04) 29 265 َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡ َلۡ...

442 ______

SURAH Al-JUMAH 11 وإذَاۡرأَۡواْۡت َٰجرةًۡأَۡوۡلَ ۡهوا… 266 َ َ َ َ ً (62)

SURAH AL-ALBYA 51 َ َ ۡ ۡ ٓ ۡ َٰ 267 َولقدۡ َءاتَينَاۡإ ب َر هي َمۡ... (21)

SURAH AL-BAKARAH 168 َٰٓ َ َّ ْ 267 يَأيُّ َهاۡٱلنا سۡۡكلواۡ م َّمۡ... (02)

SURAH AL-HUJURAT 13 َٰٓ َ َّ َّ َ ۡ َٰ 268 يَأيُّ َهاۡٱلنا سۡۡإ ناۡ َخلقنَكم... (49)

SURAH AL-BAKARAH 280 ۡ 269 َوإ نۡ َكا َنۡذوۡ عس َر ٖةۡ... (02) ۡ ۡ SURAH AL- ISRA (17) 35 270 َوأَۡوف واْۡۡٱل َكۡي َلۡۡإ ذَاۡ كلت ۡمۡ... SURAH AL-REHMAN 09 َ ْ ۡ ۡ ۡ ۡ 270 َوأق ي مواۡۡٱل َوز َنۡۡبۡ ٱل قس طۡ... (55)

SURAH AL- 1-3 ۡ ۡ َ َّ َ 271 َويلۡۡ لل مط ف في َن١ۡۡۡٱل ذي َنۡۡإ ذا... (MUTAFFIFIN (83

SURAH AL-BAKARAH 282 َٰٓ َ َّ ْ 405 يَأيُّ َهاۡٱل ذي َنۡۡ َءا َمن ٓواۡ... (02) ٓ SURAH AL-AZAB (33) 70 391 َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡٱتَّق واْۡ... ۡ SURAH ALNUR-(24) 46 391 لَّ َق ۡدۡۡأَن َزلنَآۡ َءا َٰيَ ٖتۡ ُّمبَي َٰنَ ٖتۡ... SURAH AL-MULK (67) 30 ق ۡلۡأَ َر َءۡيت ۡمۡإ ۡنۡأَ ۡصبَ َحۡ... 391 ۡ SURAH AL-A’RAF (07) 33 391 ق ۡلۡۡإ نَّ َماۡ َح َّر َمۡ َرب َيۡٱل َف ََٰو ح َشۡ… َٰ ۡ SURAH AL-ANAM (06) 120 392 َوذَ رواْۡۡ َظ ه َرۡٱ ۡ ۡلث مۡۡ َوبَا طنَهۡ ۥۡٓ… SURAH AL-MAIDAH 49 َ ۡ ۡ ٓ … 392 َوأ نۡۡٱحكمۡبَينَ همۡب َماۡ (05)

SURAH AL-NISA (04) 65 َف َالۡۡ َو َرب َكۡ َلۡي ۡؤ من و َنۡ... 393 ۡ SURAH AL-NISA (04) 13-14 393 ت ل َكۡۡ حد ود ۡٱ َّ ّللۡۡ َو َمن... SURAH AL-A’RAF (07) 85 َوإ َل َٰىۡۡ َم ۡديَ َنۡأَ َخا ه ۡمۡ شعَۡيٗب اۡ… 394,423 ۡ SURAH AL- ISRA (17) 34 394,421 َو َلۡۡتَۡق َرب واْۡ َما َلۡٱليَت ي مۡ... SURAH AL-BAKARAH 185 َّ 395 َش ۡه رۡۡ َر َم َضا َنۡٱل ذي... (02)

443 ______

SURAH AL-BAKARAH 219 ۡ ۡ 407,409 يَسۡلونَ َكۡ َع نۡٱل َخ ۡم رۡ... (02)

ۡ SURAH AL-ALAQ (96) 1-5 408 ٱ ۡق َرأۡۡبۡ ٱ ۡس مۡۡ َرب َكۡٱلَّ ذي... SURAH AL-BAKARAH 102 َّ ْ ۡ ْ َّ َٰ 408 َوٱتبَع واۡۡ َماۡتَتلواۡٱلشيَ طينۡ... (02)

SURAH AL-ANKABUT 45 ۡ ٓ َۡ 409 ٱتلۡۡ َماۡأو ح َيۡإ لي َكۡ... (29)

SURAH AL-BAKARAH 188 َ ۡ ْ َ َٰ َ 409,426 َولۡۡتَأكل ٓواۡأ ۡم َولكم... (02)

SURAH AL-BAKARAH 173 409 َّ َۡ ۡ ۡ َ َ إ ن َماۡ َح َّر َمۡ َعليك مۡٱل َميتةۡ... (02)

SURAH AL-AN’AM َ َ َّ ۡ ْ 410 119 َو َماۡلك ۡمۡألۡتَأكلواۡ م َّما... (06)

SURAH AL-IMRAN ۡ ۡ ۡ 419 110 كنت ۡمۡۡ َخي َرۡأ َّم ٍةۡأخ ر َجتۡ... (03)

SURAH AL-MAIDAH َٰٓ َ َّ ْ َ 421 01 يَأيُّ َهاۡٱل ذي َنۡۡ َءا َمن ٓواۡأ ۡوفو... (05)

SURAH AL-SHURAA َّ ۡ ْ 421 38 َوٱل ذي َنۡۡٱستَ َجاب واۡۡ ل َرب ه ۡمۡ... (42)

SURAH AL-HUJURAT َّ ۡ ۡ ۡ 421 10 إ ن َماۡٱل مؤ منو َنۡۡإ خ َوةۡ... (49)

SURAH AL-QURAYSH َۡ ْ َٰ َ 422 3-4 فليَ ۡعب د واۡ َر َّبۡ َهذا... (106)

SURAH AL- ۡ ۡ َ َّ َ 422 1-7 َويلۡۡ لل مط ف في َن١ۡۡۡٱل ذي َنۡۡإ ذا... (MUTAFFIFIN (83 ۡ SURAH AL-NISA (04) 37 424 ٱلَّ ذي َنۡۡيَۡب َخل و َنۡ َويَأ م رو َنۡ... SURAH Al-JUMAH 10 424 َفإذَاۡق ضيتۡٱلص َلوةۡ ... َ َّ َٰ (62)

SURAH AL-TAWBAH ۡ ْ َ 425 105 َوق لۡۡٱع َملواۡۡف َسيَ َرىۡٱ َّّۡلل ... (09)

SURAH AL-HUJURAT َ ٓ َ ۡ ۡ 425 09 َوإ نۡطائ فتَا نۡ م َنۡٱل مؤ من ي َنۡ... (49)

SURAH AL-MAIDAH 49 َ ۡ ۡ 426 َوأ نۡۡٱحكمۡبَينَ هم... (05) ٓ SURAH AL-NISA (04) 135 426 َٰيَأَيُّ َهاۡٱلَّ ذي َنۡۡ َءا َمن واْۡ كون وا...

444 ______

SURAH AL-TALAQ 2 َ َ َ ۡ َ َ َّ 427 فإ ذاۡبَلغ َنۡأ َجل هنۡ... (65)

3 َويَ ۡر ز ۡقهۡ ۡ م ۡنۡ َحۡي ثۡ َلۡ... 427

َٰ 427 5 ذَ ل َكۡۡأَ ۡم رۡٱ َّ ّللۡۡأَن َز َلهۡ ۥ...

LIST OF A HADITH

 From Jabir: The Prophet, may reviled the ………… indistinguishable [in guilt]." (Muslim, Kitab al-Musaqat, Bab la'ni akili al-RIBÃ wa mu'kilihi; likewise, in Tirmidhi and Musnad Ahmad);pg-253  Jabir ibn 'Abdallah, giving a give ………… accumulating to 'Abbas ibn 'Abd al-Muttalib [the Prophet's uncle]; it is being wiped out totally." (Muslim, Kitab al-Hajj, Bab Hajjati al-Nabi, may likewise in Musnad Ahmad);pg-254  From 'Abdallah ibn Hatzalah: The Prophet, stated: "A dirham of RIBÃ …...... thirty-six times" (Mishkat al-Masabih, Kitab al-Buyu', Bab al-RIBÃ, on the expert of Ahmad and Daraqutni). Bayhaqi has likewise detailed the above hadith in Shu'ab al-iman with the expansion that "Hellfire befits him whose substance has been fed by the unlawful." ;pg-254  From Abu Hurayrah: The Prophet, stated: "the evening ……… had gotten intrigue." (Ibn Majah, Kitab al-Tijarat, Bab al-taghlizi fi al-RIBÃ; additionally, in Musnad Ahmad); pg-254  From Abu Hurayrah: The Prophet, stated: "RIBÃ has ……… infidelity with his own mom." (Ibn Majah) ;pg-254  From Abu Hurayrah: The Prophet, stated: "There will ………..will contact him." (Abu Dawood, Kitab al-Buyu', Bab fi ijtinabi al-shubuhat; likewise, in Ibn Majah); pg-254  From Abu Hurayrah: The Prophet, stated: "God would …….. to his folks." (Mustadrak al-Hakim, Kitab al-Buyu');pg-254  From Usama ibn Zayd: The Prophet, stated: "There is no RIBÃ with the exception of in Nasiyah [waiting]." (Bukhari, Kitab al-Buyu', Bab Bay' al- denarii bi al-dinar nasa'an; likewise, Muslim and Musnad Ahmad) "There is

445 ______no RIBÃ close by to-hand [spot] exchanges." (Muslim, Kitab al-Musaqat, Bah bay'i al-ta'ami mithlan bi mithlin; additionally, in Nasa'i) ;pg-255  From Ibn Masoud: The Prophet, stated: "Notwithstanding …….. into immateriality." (Ibn Majah, Kitab al-Tijarat, Bab al-taghlizi fi al-RIBÃ; additionally, in Musnad Ahmad);pg-255  From Anas ibn Malik: The Prophet, stated: "When one ……….. Such supports commonly." (Sunna al-Bayhaqi, Kitab al-Buyu', Bab kulli qardin jarra manfa'atan fa huwa RIBÃN);pg-255  From Anas ibn Malik: The Prophet, stated: "If a man ………..a blessing." (Mishkat, on the specialist of Bukhara's Tarikh and Ibn Taymiyyah's al-Muntaqa); pg-255  From Abu Burdah ibn Abi Musa: I came to Madinah and met 'Abdallah ibn SALAM who stated, "You live …………it for it is RIBÃ." (Mishkat, given an account of the expert of Bukhari); pg-255  Fadalah ibn 'Ubaid said that "The advantage ……. of RIBÃ." (Sunan al-Bayhaqi) ;pg-255  From 'Umar ibn al-Khattab: The last verse ………... legitimate ness]. (Ibn Majah,); pg-256  The Prophet, stated, "Offer gold …………it is hand-to-hand (spot).";pg-256  From Abu Sa'id al-Khudri: The Prophet, stated: "Don't offer ……… for what is prepared." (Bukhari, Kitab al-Buyu', Bab bay'i al-fiddati bi al-fiddah; additionally, Muslim, Tirmidhi, Nasa'i and Musnad Ahmad); pg-256  From 'Ubada ibn al-Samit: The Prophet, stated: "Gold for gold, ……..trade is hand-to-hand." (Muslim, Kitab al-Musaqat, Bab al-sarfi wa bay'i al-dhahabi bi al-waraqi naqdan; likewise, in Tirmidhi) ;pg-256  From Abu Sa'id al-Khudri: The Prophet, stated: "Gold for gold,…….are similar [in guilt]." (Muslim, in the same place; and Musnad Ahmad);pg-256  From Abu Sa'id and Abu Hurayrah: A man utilized by the Prophet, in Khaybar brought …….. equivalent in weight." (Bukhari, Kitab al-Buyu', Bab idha arada bay'a tamrin bi tamrin khayrun minhu; additionally, Muslim and Nasa'i);pg-257

446 ______ From Abu Sa'id: Bilal conveyed to the Prophet, a few barni ………..with the value you get." (Muslim, Kitab al-Musaqat, Bab al-ta'ami mithlan bi mithlin; additionally, Musnad Ahmad); pg-257  From Fadalah ibn 'Ubayd al-Ansari: upon the ……… esteemed independently." (Muslim, Kitab al-Musaqat, Bab bay'i al-qiladah fiha khara- zun wa dhahab; likewise, in Tirmidhi and Nasa'i);pg-257  From Abu Umamah: The Prophet, stated: "Whoever makes a ……….vast doors." (Bulugh al-Maram, Kitab al-Buyu', Bab al-RIBÃ, covered the expert of Ahmad and Abu Dawood); pg-257  From Anas ibn Malik: The Prophet, stated: "Misdirecting a ……….is RIBÃ." (Suyuti, al-Jami' al-Saghir, under the word ghabn; Kanz al-'Ummal, Kitab al-Buyu', al-Bab al-thani, al-fasl al-thani, on the specialist of Sunan al- Bayhaqi) ;pg-257  From 'Abdallah ibn Abi Awfa: The Prophet, stated: "A najish …………a reviled taker of RIBÃ." (Cited by Ibn Hajar al-'Asqalani in his analysis on Al-Bukhari called Fath al-Bari, Kitab al-Buyu', Bab al-najsh; likewise, in Suyuti, al-Jami al-Saghir, under the word al-najish and Kanz al- 'Ummal, operation. cit., both on the specialist of Tabarani's al-Kabir).;pg-258  The Holy Prophet (P.P.U.H) said: “you s…….. was created” (Al-Bukhari and Muslim) ;pg-391  Narrated by Abu Hurayrah (radiyALLAHu ‘anhu), ALLAH’s Messenger (salALLAHu ‘alayhi wa sallam) said: ‘While a man was going on a way,…… buried alive (and) dies, and one who is killed in ALLAH’s cause.’ [Al-Bukhari; the Book of the Adhaan];pg-411  Abu Hurayrah reported ALLAH’s Messenger (salALLAHu ‘alayhi wa sallam) as saying: While a person was going along the …….. granted him pardon. [Muslim; The Book of Righteousness, Manners and Joining the Ties of Kinship];pg-411  Abu Hurayrah reported ALLAH’s Messenger as saying that he……. which was a source of inconvenience to the people. [Muslim] ;pg-411  "whoever crowds are a miscreant" (Muslim);pg-412  Narrated by Abu Hurayrah (radiyALLAHu 'anhu), ALLAH's Messenger (salALLAHu 'alayhi wa sallam) stated: 'While a man……….. who is

447 ______murdered in ALLAH's motivation.' [Al-Bukhari; the Book of the Adhaan];pg-412  Abu Hurayrah revealed ALLAH's Messenger (salALLAHu 'alayhi wa sallam) as saying: While a man was coming ……. exonerate. [Muslim;412  The Book of Righteousness, Manners and Joining the Ties of Kinship];pg- 412  Abu Hurayrah detailed ALLAH's Messenger as saying that he saw a ………. wellspring of bother to the general population. [Muslim;pg-412  The Holy Prophet (P.P.U.H) said, “Muslim must abide by their agreement” (Al-Tirmidi);pg-421  The Holy Prophet (P.P.U.H) said, “whoever cheats us is not of us.” (Muslim, Tirmidi, Abu Dawood";pg-422  As the Holy Prophet (P.P.U.H) said, “Gives the wages of employ before it sweat dry.” (ibn Majah Hadith no. 2468).;pg-423  The Holy Prophet (P.P.U.H) said, “I am the adversary of a man who employs a worker but does not pay rightful wages.” (Bukhari Hadith no. 2114);pg-423  As the Holy Prophet (P.P.U.H) said, “the more you make work easy for your employ, the more you will be rewarded by ALLAH.” (Targib & Tarhib, Ibn Habban);pg-423  As Holy Prophet (P.P.U.H) said, “Best earning is what is earned by the labor of hand with sincerity.” (Ahmad, Hadith no. 8393);pg-424  In this connection the Holy Prophet (P.P.U.H) also said, “The……….. the poor and forgive the rich.” (Al-Bukhari Vol. 8, Book 88, No 778);pg-426

448 ______LIST OF COUNTRIES

 Pakistan 177,187,205  New Zealand 90,321,333  Dubai 134,145,149  Malaysia 71, 91,132  Saudi Arabia 71,88,158  France 27,85,94  Germany 47,91,102  China 75,222,338  America 155,181,195  Italy 91,94,339  Brazil 91,92,338  Britain 27,28,223  United States 98,214,215  Europe 86,98,173  Iran 72,88,90  Spain 94  Australia 55,96,158  Canada 157,158,159  Hong kong 76,285

449 ______LIST OF PERSONALITIES  Robber Baron 26  Al Fred D Chandler 26  Peter Rolf Lutzeier 37  Damaso Alonso 37  Dr. Samuel Johnson 36  Noah Webster 36  Ghil'ad Zuckermann 37  Roland Barthes 37  William Metzger 48  H.O. kohller 48  Henry ford 49  Ray krac 49  Isaac singer 49  Main Amir Mahmud 190  Mufti Taqi Usmani 413,342  Muhammad Najatullah Siddiqui 291  Ahmad al-Naggar 282  Mehmood Shaltut 279  Syed Ahmad Khan 279  Fazal Al-Rehman, 279  Muhammad Syyid Tantawy 279  Yusuf Al-Qaradawi 279  Imam Malik 364,265,381  Imam Shafi'I 364,365  Imam-Abu-Hanifah 364  Imam Ahmad Bin Hanbal 365