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Franchise Legal Updates Saudi Arabia

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Franchise Legal Updates Saudi Arabia

Legal agreements
Most agreements take the form of a master franchise or license holder. These deals are often done on the basis of covering the entire Kingdom. However, some international brands have settled on agreements which regionalize the Kingdom into East, West and Central, thus dealing with 3 major parties rather than one. Another trend is to conclude a deal with prominent local parties with the objective of covering the whole Gulf rather than just Saudi.

It is important to note that both the brand and the franchise agreement need to be registered. Brand registration is an approximate 120 day exercise from the day of publication in the Government Gazette. The period leading up to publication depends on the quality of legal firm selected. The agreement registration follows a route from the Saudi Embassy in the brand's country of origin to the Ministry of Commerce in the Kingdom. Potential brands wishing to enter the market would be well advised to judge potential local parties on their ability to assist with and progress these procedures.

Franchise Legal Updates Saudi Arabia | Franchise Legal Updates Saudi Arabia
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