Alqanoni

Franchise Law

Art. 8
Status unknownSaudi ArabiaRegulation

Issued by Ministry of Investment (misa.gov.sa)

Unless otherwise agreed in writing with the franchisee, the franchisor shall: 1. determine the rights granted to the franchisee with respect to the franchise; 2. specify the franchise business model in detail, including the criteria and instructions the franchisee must follow in order to operate and manage the franchised business, as well as Franchise Law provide the franchisee with operation manuals; 3. train the franchisee’s personnel; 4. provide technical and marketing expertise and any other expertise required by the nature of the granted franchise; 5. provide the franchisee, whether directly or through a third party, with the franchise goods or services during the validity of the franchise agreement, except for goods and services the franchisee is permitted to purchase from a third party; 6. maintain the confidentiality of the accounting and financial information and data relating to the franchisee's business; 7. provide the franchisee, upon request, with details on amounts paid or to be paid with respect to operating the franchised business; and 8. refrain from establishing any establishment that engages in a business activity similar to that of the franchisee within the geographical area defined in the franchise agreement, or granting a third party the right to do the same, during the validity of the franchise agreement.

The Arabic text is the legally binding version. The English translation is provided for guidance only.

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