Franchising has become one of the fastest-growing investment models in Saudi Arabia, particularly in the food, retail, and service sectors. With new government regulations aimed at organizing this industry, it’s vital for entrepreneurs and investors to understand the legal framework of franchising to protect their rights and expand securely.
What Is a Franchise?
A franchise is a legal agreement in which one party (the franchisee) is granted the right to operate using another party’s (the franchisor’s) brand name, business model, and intellectual property — in exchange for fees and under specific legal terms.
Franchise Registration Process in Saudi Arabia:
- Prepare the Franchise Disclosure Document (FDD)
Includes detailed information about the brand, business model, and obligations of both parties. - Draft the Franchise Agreement
Defines rights, responsibilities, duration, dispute resolution, and territorial expansion. - Register with the Ministry of Commerce
A mandatory step to protect your franchise and comply with franchise law. - Create the Operational Manual
Provides a standard procedure to ensure consistency across franchise locations.
Key Benefits for Franchisees:
- Launching a business with a proven model
- Lower operational risk
- Ongoing training and support
- Brand recognition and trust
How Sadak Can Help
Sadak Law Firm is among the first licensed firms in Makkah specializing in franchise law. Our services include:
- Drafting and reviewing franchise agreements
- Legal and strategic consultation
- Registration with the Ministry of Commerce
- FDD and operational manual preparation
- Trademark protection
- Representing franchisors or franchisees in disputes
Thinking about launching or acquiring a franchise? Contact us to ensure legal compliance and success.
