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The Law Firm Of Hazim Almadani

FRANCHISING SERVICE

With the development of businesses globally, the main goal of companies and investors has become to expand into global markets. It has also become the target for new investors to establish a successful business. If this is your purpose, the simplest way to achieve it is to create a business under a well-known brand to guarantee the success of your business with less risk of failure compared to traditional small businesses.

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Definition of Franchise:

With the new investment project initiative, Saudi vision 2030, as well as the latest National Investment Strategy issued by the Ministry of Investment, strongly encouraging foreign investors to join in on the major economic developments in Saudi Arabia, it has become an ideal hub for investments of Multinational Corporations, as well as Small and Medium Enterprises, on a global scale. Lastly, the Saudi Government’s latest announcement to stop governmental entities and agencies from dealing with companies whose headquarters are not Saudi based by 2024, further stating that having a regional headquarters is no longer sufficient, there is no better time to have a company registration in Saudi Arabia. As such, we’re here to help and assist you in setting up your business, accompanying you in each step up to full operations.

Parties to the Franchise Contract

Franchisor

A natural or legal person who grants the franchise under a franchise agreement. this includes the main franchisee and his relationship with the sub-franchisee.

Franchisee

A natural or legal person who is granted a franchise under a franchise agreement, and this includes the sub-franchise holder and his relationship with the main franchisee.

Advantages of obtaining a franchise

Ensuring the success of the new business under an existing and successful brand and name.

Avoid the failure of start-up projects.

Obtaining technical support from the franchisor.

Gaining management, operations, and marketing experience.

Ensuring the presence of clients.

Obtaining the franchisor's marketing service and ensuring customer service, advertising, and after-sales

Why the Law Firm of Hazim Al-Madani?

Hazim Al Madani Law Firm is a Saudi law firm that specializes in commercial franchising. All legal advice and services related to the commercial franchise are provided by us. Our lawyers and legal consultants are experts in commercial franchising according to the Saudi Franchise Law issued in 2020. We are specialized in:

Trademark registration:

Our expert team provides you with a smooth and easy experience by simplifying the process and accomplishing the task of trademark registration without any complications. A trademark can be any symbol, logo, sign, word, phrase, design, or combination of things that help identify the organization’s products/services from other products and services.

Drafting commercial franchise contracts

The Saudi Commercial Franchise Law defines the franchise agreement as: “An agreement between the franchisor and the franchisee according to which the franchise is granted.” In Hazim Al-Madani Law Firm, our lawyers are specialized in drafting franchise contracts according to the legal basis that guarantees the rights of both parties to avoid franchise disputes by providing an appropriate legal environment for these types of contracts.

Providing legal solutions to contractual relations and disputes between the franchisor and the franchisee

Our law firm is specialized in settling disputes and litigation if either party does not fulfill its legal obligations under the franchise contract (Franchise Agreement). We are also specialized in compensation claims and filing lawsuits related to commercial franchises and represent our clients before the competent Saudi Arabian courts of all degrees. Also, if the parties agree to settle the disputes arising from the franchise agreement by resorting it to arbitration, mediation, or conciliation, we provide advice to choose the best arbitrator or mediator and represent the parties legally before the arbitration committees.

Types of franchises provided by Hazim Al-Madani Office

Sub franchising (Master)

It is when the franchisor is from a foreign country and grants the right to an individual or company (master franchisee) in the host country to grant subsidiary franchises to qualified investors.

Sole proprietorship Franchise

Here, the franchisor operates a sole proprietorship, such as operating a utility vehicle for cleaning, maintenance, and delivery.

Transformational Franchise

When the franchisor or franchisee operates a business similar to that of the franchisor and takes advantage of the franchisor's operational and marketing capabilities.

Areas Developing Franchise

It is the granting of exclusive rights to create and operate a certain number of units in a particular area.

Direct franchise

It is the granting of direct rights and the provision of training and ongoing support to one or more units.

Single-unit franchise

The franchisor grants non-exclusive rights to the franchisee who invests his capital and applies his management skills in one location or unit (the most common type of franchise).

White-collar franchises

When the franchisee is running a professional office business such as financial services, human resources, consulting, and project management.

Investment franchise

When the capital of the project is huge, such as international hotels, here the franchisee finances the project and has the right to manage only and grants the right to daily management and operation of the company.

Administrative Franchise

In this case, the franchisor grants the franchisee the right to manage the project himself, in addition to granting him the franchise right.

Partnership Franchise

Here, the franchisor enters a partnership contract with the franchisee.

Continuous Concern Franchise

Here, the franchisor operates the business himself to ensure its success before franchising the franchisee.

Function Franchise

Here, the franchisor grants an international franchise by establishing a wholly owned subsidiary company to grant local franchises while providing training and support to the franchisee in that country.

Turnkey franchise

The franchisor provides all elements of the activity and makes all the supplies, equipment, and products available to the franchisee at the time of start-up.

Franchise for Distribution and Sales

The franchisor grants rights to sell and distribute products or services to a salesperson (the franchisee) in a specified territory.

Business systems franchise:

Here the franchisor gives knowledge and training related to overall project management (know-how).

Multi-Unit franchise

The franchisee obtains the exclusivity of opening franchise units in a specific geographical area and usually undertakes to open several shops at a specific time stipulated in the multi-unit franchise contract.

Got a Question?

FAQ

No, there are contracts and agreements defined by the commercial franchise law in Article 4, as well as the commercial franchise law executive regulations in Article 2, that are not considered franchise agreements.
A document that includes disclosure of the most significant rights, duties, and fundamental risks related to franchise opportunities.
Yes, for three years from the date of termination of the franchise agreement.

–The fees for the application for registration of the franchise agreement and disclosure document is the amount of (five hundred) Saudi riyals.
-The fees for a request to register the amendment of the franchise agreement is the amount of one hundred Saudi riyals.

The franchisor must register the franchise agreement and disclosure document within 90 days from the date of signing the agreement with the Ministry.

The franchisor shall submit to the Ministry, through the franchise platform, a request to cancel the registration within ninety days from the date of its expiry or termination.