The Saudi Council of Ministers approved the Commercial Franchise Law and the law is now published in official gazette as of October 08, 2019. This law will become effective after 180 days from the date of publication.

After application of Franchise Law, the franchise arrangement between franchisor and franchisee will be governed under this law. Prior to this law, there was no standalone law regulating franchise arrangements. The agency law of Saudi Arabia was covering franchise contractual arrangement.

This law clearly makes distinction between subject matters covered under franchise agreement and agency law.

The rights and obligations of Franchisor and franchisee are clearly provided in the law.

The franchise agreement must be registered.

Implementing regulations will be issued within 180 days of publication of this law.

For further details, please contact us:

09 Oct 2019

IP Decisions KSA