Franchise Law

The franchisor may not terminate the franchise agreement prior to its expiration without the franchisee’s written approval, except in the following cases: 1. If the franchisee fails to fulfill his fundamental obligations under the franchise agreement and does not rectify the situation within a period not exceeding 14 days from the date of the franchisor’s written notice. 2. If the franchisee is liquidated or dissolved, or if he assigns the franchised business or its usufruct to his creditors, or disposes of the assets of the franchised business for the benefit of a third party. 3. If the franchisee abandons or voluntarily discontinues to operate the franchised business for more than 90 consecutive days. 4. If the franchisee repeatedly fails to abide by the terms and conditions of the franchise agreement or any other franchise-related agreement concluded with the franchisor or franchisor’s associates despite being notified in writing by the franchisor to fulfill his obligations. 5. If the franchisee's operation of the franchised business poses a threat to public health and safety. Franchise Law 6. If the franchisee loses any of the licenses necessary for operating the franchised business. 7. If the franchisee commits a substantial violation of any of the laws in force in the Kingdom which undermines the reputation of the franchised business. 8. If the franchisee commits a fraudulent act while operating the franchised business. 9. If the franchisee infringes upon the franchisor's intellectual property rights during the validity of the franchise agreement. 10. Any other case the franchise agreement deems a valid reason for termination. Chapter 10: Compensation