Take advantage of the Franchise Center's assistance, which includes coaching and training, as well as the potential of incorporating the brand in the Franchise Ambition Program to boost the brand's adoption of the franchise model.

The Franchise Center provides several services and programs to support and enable the expansion and investment via franchise in cooperation with related entities in the franchise ecosystem, including the following:

• Check Brand's Readiness for Franchise Service

• Brokers’ Licensing Service

• Tomoh Franchise Program

• Amicable Dispute Service

• Franchise Manager Service

• Facilitation of Franchise Funding Service.

• Franchise Registration Service.

• Training Courses via Monsha'at Academy.

• Consultancy and Guidance Services via Nawafith Application and SMEs Support Centers.

1. The brand must be Saudi.
2. Have two branches or more.
3. The brand meets the requirements of the Commercial Franchise Law and its Executive Regulations.

Yes, the service can be provided to any employee according to the brand’s needs.

Consultations and support continue to be provided to beneficiary brands as needed.

The duration is decided after reviewing the documents, meeting with the brand owners and determining their needs.

Qualifying and building the franchise manager’s capacity to ensure that he/she works according to the franchise model, which contributes to business sustainability.

Any individual with good communication skills and assumes one of the following roles: 

A. Operations/Operation Manager

B. Quality Manager

C. Marketing Manager

D. Training Manager

E. Financial Manager 

In principle, it is not necessary to provide information on the franchise's previous or projected financial performance; however, the Implementing Regulations have specified items that must be included to ensure clarity and reflect the truth, which are listed in Article (7) of the Implementing Regulations. The foregoing applies when the franchisor provides the franchisee with (information regarding the previous or projected financial performance of the franchise owned by the franchisor or any member of its group).
The financial performance information includes for example (revenue - profitability - break-even point of profits and losses - cost of sales - operating cost. - capital payback period and return on investment).

The Law does not provide for a definite term for the franchise agreement, and it allows for freedom of contract between the parties. The major goal of franchise contracts is to achieve the interest or profitability of both parties, which is accomplished by the contract term being longer than the capital payback period.

Yes, a foreign brand may practice franchise business in the Kingdom subject to the same requirements stipulated in Article Five of the Law which made no distinction between Saudi and foreign brands.

The franchise model means the way to manage the franchise business as determined by the franchisor, including how the brand associated with that business is presented, which the franchisor must adhere to. Additionally, the practice of franchise model shall be done based on the operational manuals associated with the franchise business, for example, operational manual, training manual, marketing manual, and internal policies and procedures manual.

The Disclosure Document submitted by the franchisor to the franchisee is one of the means of verifying the franchise granting eligibility. Under the Disclosure Document, the franchisor states the number of franchise units operated by the franchise business model as stipulated in the Implementing Regulations in the Disclosure Document Requirements - Article 12.

There are two cases:
A. First Case: The franchise business must be practiced according to the franchise business model for a period of no less than one year by two persons (one of these persons may be the franchisor or any person within its group) or in at least two different sale outlets.
B. Second Case: In the case of a sub-franchisor, the sub-franchisor must have practiced franchise business for a period of not less than one year.

Individuals can obtain franchising. According to Article 1 of the regulations, the franchisee is defined as "a natural or legal person granted a franchise under an agreement." This clarifies that there is no distinction between an individual franchisee and an entity or enterprise.