Saudi Arabia Franchise Law

Introduction

On the 28th of Sha’ban, 1444H (corresponding to 22 April 2020), Saudi Arabia Royal Decree No. M22/1441 On the approval of the Commercial Franchise Law (Saudi Arabia Cabinet Decision No. 122/1441 On the approval of the Commercial Franchise Law) (which was issued on the 9th of Safar 1441H (corresponding to 8 October 2019)) came into effect.

On the 18th of Ramadan 1441H (corresponding to 11 May 2020), Saudi Arabia Ministerial Decision No. 00591/1441 On the Approval of the Implementing Regulation of the Commercial Franchise Law was issued. Furthermore, Saudi Arabia Law No. 1/1437 Approving the GCC Trademark Law which came into effect on the 16th of Rajab 1435H (corresponding to 5 May 2014) is the law that governs the protection, registration, and licensing of trademarks, which can be included in the offer and sale of franchises.

An outline of the key provisions of Saudi Arabia Royal Decree No. M22/1441 (Saudi Arabia Cabinet Decision No. 122/1441) will be discussed in this Legislative Insight.

Implications on existing franchise agreements