One way to modernize product distribution system is to develop large and chain stores  which will not happen without spending high costs and   having specialized knowledge. Using the capacity of foreign investors is an approach to accelerate reaching developmental goals. The purpose of this article is to study foreign investment especially joint investment in developing large and chain stores. Results show that despite country's demand to develop such stores, Iran is not ranked among the first 30 attractive countries for foreign direct investment in this area. Therefore, in order to make this market attractive for foreign investors, it is vital that related organization focus on some important proceeds such as supply and allocation of land for establishment of  joint venture stores, preparation of contracts with foreign parties in terms of the transfer of key components of management knowledge, technology, human resource training, Arrangements for the registration of independent companies with mutual cooperation and expedite the process of obtaining permits to build single window approach, setting incentive packages and cooperations to  utilize existing cacapcities (Exemptions or tax breaks, foreign exchange facilities) in order to attract foreign investment.