Franchise Lawyers in Jeddah

Franchise law in Jeddah: registration within 90 days is a fundamental requirement

The Franchise Law issued by Royal Decree M/22 of 1441H and its implementing regulation govern the relationship between franchisor and franchisee, requiring the franchise agreement and disclosure document to be registered with the Ministry of Commerce within 90 days of signing. Failing to register within this period exposes both parties to administrative and financial penalties, though it doesn't invalidate the contract itself or affect the franchisee's rights.

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The disclosure document: the franchisee's right before signing

The law requires the franchisor to provide a complete disclosure document to a prospective franchisee at least 14 days before signing, containing material information about the business and the franchisor's commercial and legal record. Carefully reviewing this document before paying or signing protects the investor from entering an unprofitable franchise or one based on inaccurate information about other branches' performance.

Essential franchise agreement clauses

The contract must include a description of the business and its geographic scope, the term and renewal conditions, the financial consideration and how it's calculated, the franchisor's obligations (training, operational and marketing support), intellectual property rights tied to the trademark, and clear terms for termination (such as commercial fraud or IP infringement) and a mechanism for resolving any dispute between the parties.

Our franchise law services

• Drafting and reviewing franchise agreements and disclosure documents for franchisors
• Reviewing franchise offers for investors before signing or paying any amount
• Registering franchise agreements with the Ministry of Commerce within the statutory deadline
• Representing clients in disputes over franchise termination or breach of either party's obligations

How we start

1. Send us the proposed franchise agreement or your plan to grant a franchise over WhatsApp
2. The lawyers review the terms and confirm compliance with the law before any commitment
3. The lawyers proceed with registration or represent you in any franchise-related dispute

To review or register a franchise agreement in Jeddah, contact us on WhatsApp.

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