FRANCHISE LAW

HIGHLIGHTS OF FRANCHISE LAW:

• Regulation of Franchise Agreements: Governs the establishment, operation, and termination of franchise agreements.
• Legal Standards and Protections: Ensures compliance with legal requirements and safeguards the rights and interests of both franchisors and franchisees.
• Oversight of Collaborative Business Ventures: Provides a framework for collaborative business ventures and promotes fairness in franchising relationships.

ISSUER OF FRANCHISE LAW:

Franchising activities in the country are governed by various regulations and authorities. The Ministry of Commerce plays a significant role in regulating commercial activities in the country, including franchising. Additionally, the Ministry of Investment Saudi Arabia (MISA) is responsible for promoting and regulating foreign investment in the Kingdom, which can include franchising arrangements.

WHO IS SUBJECT TO FRANCHISE LAW:

• Applicable to both franchisors and franchisees engaged in franchise agreements.
• Franchisors are responsible for complying with franchise disclosure and registration requirements.
• Franchisees are bound by the terms and conditions outlined in franchise agreements and are entitled to legal protections under the Franchise Law.