Commercial Franchise Law

نظام الامتياز التجاري

The Commercial Franchise Law was approved by Royal Decree No. M/22 dated 9/2/1441 AH, following Council of Ministers Resolution No. 122 dated 9/2/1441 AH. Articles 5, 6, 7, paragraph 2 of Article 8, paragraph 2 of Article 9, and Articles 11, 17, and 19 of the law do not apply to franchise contracts concluded before its entry into force, and the Council of Ministers may decide that certain requirements do not apply to certain categories of franchise grantors or holders, based on criteria proposed by the Minister of Commerce and Investment. The resolution also establishes a Commercial Franchise Center within the General Authority for Small and Medium Enterprises, tasked with duties including setting conditions for franchise mediation and conciliation activities, raising awareness of franchise activities, preparing studies and statistics, and working to resolve disputes between franchisors and franchisees amicably.

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