Franchise Law

Unless otherwise provided for in the franchise agreement, a franchisee seeking to renew or extend the franchise agreement shall notify the franchisor in writing within a period not less than 180 days prior to its expiration. The franchise agreement may be renewed or extended for a term similar to the term originally agreed upon and under the same terms and conditions, except in the following cases: 1. If the franchisor and franchisee agree on new terms and conditions. 2. If any of the cases provided in Article 18 of this Law occurs. 3. If the franchisee fails to pay amounts due under the franchise agreement. 4. If, prior to the expiry of the agreement, the franchisor approves the franchisee's assignment of the franchise agreement and franchised business to a third party who fulfills the franchisor’s criteria for granting the franchise. 5. If the franchisor ceases to engage in franchising or in granting franchises in the Kingdom. 6. If the franchisee does not conclude the franchise renewal or extension agreement prior to the 60 days preceding the expiration of the franchise agreement despite the franchisor’s reasonable requirements. Franchise Law Chapter 9: Termination or Expiry of the Franchise Agreement