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Franchising is one of the most effective methods for rapidly growing a business, leveraging brand familiarity, well-established commercial models, and domestic experience. However, if you want to set up and run a franchise in KSA, you must meet complex legal conditions, including regulatory requirements, obtaining franchise licenses and permits, registering in the commercial register, and safeguarding your rights through the conclusion of franchise agreements.

Sadany & Partners Law Firm, based in Riyadh, offers comprehensive legal services to both franchisors and franchisees. We have well-versed and top-experienced franchise lawyers in KSA, who provide legal support to clients on franchise structure, enrollment, contracts, and dispute settlements to protect your franchise project legally and achieve the success of your business.

If you wish to franchise your brand or obtain a franchise opportunity in the Kingdom, Sadany & Partners is your supporting business partner that will help you at every stage of your business path.

The Legal Framework for Franchising in Saudi Arabia

The franchising business in KSA is subject to:

  • The Saudi Franchise Law (Royal Decree No. M/22 of 2019) and its Executive Regulations.
  • Requirements set by the Ministry of Commerce with respect to franchise registration and disclosure.
  • General commercial statutes, including the Commercial Agencies Law, Contract Law, and the E-Commerce Law (for virtual franchising ventures).

The local and international franchises are governed by the Franchise Law in order to ensure accountability, clarity, and equality, and safeguard the rights of franchisors and franchisees alike.

The major requirements of franchising include:

  • Franchise Disclosure Document (FDD): The Franchisor is required to submit a comprehensive disclosure document to the Franchisee, at least 14 days before the execution of the franchise agreement.
  • Franchise Registration: Registering the franchise at the Ministry of Commerce is one of the basic conditions for setting up a franchise in Saudi Arabia.
  • Equality Obligations: During the implementation of the franchise agreement, the franchisor and franchisee must comply with principles of fairness, equality, and good faith.
  • Conflict Settlement Provisions: The franchise agreement must outline clear means for resolving conflicts.

Sadany & Partners provides full support to help clients fulfill the legal requirements correctly and prevent regulatory problems and potential disagreements.

Our Franchise Law Services

Sadany & Partners delivers all-inclusive legal services for franchising projects in the Kingdom, including:

1. Franchise Structuring and Advisory

  • Providing legal support on the best franchising type (direct franchising, master franchising, area development agreements).
  • Providing legal counsel to clients with respect to adherence to Saudi franchise laws and commercial regulations.

2. Franchise Agreement Drafting and Review

  • Preparing effective and comprehensive franchise agreements purpose-built for safeguarding the rights of the franchisor and franchisee.
  • Revising the franchise agreement to determine and minimize legal risks.
  • Providing legal advice on commercial terms such as royalties, fees, territorial rights, training obligations, and IP protections.

3. Franchise Disclosure Compliance

  • Drafting the Franchise Disclosure Documents (FDDs) in line with legal requirements.
  • Providing legal guidance on disclosure liabilities to avoid probable allegations of non-compliance.

4. Franchise Registration Services

  • Helping the franchisor and franchisee in enrolling the franchise agreements with the Saudi Ministry of Commerce.
  • Drafting documents, providing applications, and contacting the regulatory authorities.

5. Franchise Dispute Resolution

  • Advocating on behalf of franchisors and franchisees at conciliation sessions, before arbitration tribunals and courts to resolve disagreements.
  • Providing legal counsel on franchise matters, including termination, extension, and execution of franchise rights.

We have a bilingual (Arabic and English) legal team that acts as a smooth liaison between local companies and international franchise brands expanding into KSA.

Who We Serve

Sadany & Partners provides its legal services to an extensive collection of clients in the franchising industry, such as:

  • International franchisors entering the KSA market.
  • Saudi companies seeking to obtain international franchise rights.
  • Emerging companies that franchise their local brand.
  • Franchise investors and master franchisees.
  • Franchisors and franchisees in industries of retail, food and beverage, education, health and fitness, hospitality, and service.

Whether you're starting a new franchise or scaling your current sales network, Sadany & Partners is your supporting partner.

Why Clients Trust Sadany & Partners for Franchise Law Services

We gain the trust of our clients because we have:

  • In-depth Knowledge of Franchise Law: A deep understanding of Saudi and international franchise regulations.
  • Integrated Legal Services: Managing all phases of the franchising journey, from the initial setup to resolving conflicts.
  • Strategic, Business-Focused Advice: Balancing legal protection and business objectives.
  • Quick Response, Client-Centered Service: Delivering effective and hands-on legal solutions on time.

We are devoted to safeguarding your brand, business, and long-term growth in the Saudi franchise market.

Our Approach to Franchise Legal Matters

At Sadany & Partners, we follow a preemptive and strategic methodology in franchise legal services as follows:

  1. Preliminary Consultation: Grasping your business structure, objectives, and desired risk.
  2. Legal Plan Development: Developing a franchising plan to achieve compliance and business growth.
  3. Contract Preparation and Negotiation: Drafting comprehensive and effective agreements that safeguard your rights and interests.
  4. Handling Compliance Management: Following up on procedures of franchise registration, while ensuring that disclosure requirements are satisfied.
  5. Continuous Legal Support: Providing legal support in franchise extension, agreement termination, conflict settlement, and growth strategies.

Our mission is to provide legal services to finalize the franchising process seamlessly, while adhering to legal requirements, so that our clients proceed with their business successfully and profitably.

Contact a Leading Franchise Lawyer in Saudi Arabia Today

Whether you are a franchisor or franchisee seeking legal support on franchising in Saudi Arabia, Sadany & Partners Law Firm is your success partner that will provide to you professionally and thoughtfully.

Get in touch with us today to schedule a consultation meeting with our professional franchise lawyer.

  • Phone: +966 11 512 8065
  • Email: info@sadanypartners.com
  • Address: 4th Floor, Office 403, Building no. 7459, Al-Olaya Street, Al-Murooj District, Riyadh, Saudi Arabia
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