Technical knowledge is mentioned in the definition of “Franchise” in Article One of the Law. It is one of the four basic elements that must be available in any contractual relationship that falls within the concept of franchise agreement and is therefore governed by the provisions of the Law.
If one or more of these elements are not available, the contractual relationship does not qualify to be a franchise and becomes any other type of contractual relationship, such as: Commercial agency and distribution contracts. For example:
In operating its business, the agent or distributor is often not required to follow in detail the manufacturer's method of conducting the business (e.g. how often the franchisee must clean the floors or uniform that its employees must wear).

Yes, the Law does not require that the brand associated with the franchise be registered in order to grant the franchise.

Yes, the franchisee has the right to terminate the franchise agreement and claim compensation based on the provisions of Articles Seventeen and Nineteen of the Law, which state that:
• (Termination) If the franchisor materially breaches the disclosure or registration obligations, the franchisee may, before the expiry of one year from the date of becoming aware of the breach or before the expiry of three years from the date of the breach, whichever is earlier, terminate the agreement by written notice to the franchisor, without compensating the franchisor for such termination. In addition, the franchisor shall - either by himself or through any person from his group - comply with the provisions of Article 20(1) in respect of compensation.
• (Compensation for any damage suffered by franchisee without terminating the franchise agreement). Based on Article Nineteen of the Law, if there is a material breach by the franchisor of its obligations related to registration and disclosure: The franchisee shall have the right to claim compensation for any sustained damage without terminating the franchise agreement.

No, this does not imply that the parties are exempt from the obligations (pertaining to training and experience transfer) if such requirements exist and have been agreed upon by the parties in contracts concluded before the entry into force of the Law.

No, it does not mean that obligations between the parties, if any, are inapplicable insofar as such obligations have been agreed upon between the parties in contracts concluded before the entry into force of the Law, and are binding on the parties if they are included in the agreement concluded between them.

Yes, Article Two of Royal Decree No. (M/22) dated 9/2/1441 AH specifies the articles whose provisions do not apply to contracts concluded before the entry into force of the Law, because they belong to the pre-convening stage, which cannot be applied to contracts concluded before the entry into force of the Law.
The following provisions do not apply to such contracts:
Article (Five) on Franchise Granting Conditions, Article (Six) and Article (Seven) on Registration and Disclosure, Article Eight (2) and Article Nine (2) on Parties’ Obligations, Article (Eleven) on Franchise Agreement Terms, Article (Seventeen) on Termination Due to Material Breach of the Obligations of Disclosure and Registration, and Article (Nineteen) on Compensation Due to Material Breach of the Obligations of Disclosure or Registration.

14 days after the order is completed.

Amicable settlement proceedings shall terminate in the following cases:
• Once the amicable settlement document has been released, accepted by the parties and accordingly approved.
• If one of the parties to the reconciliation is absent, in accordance with the provisions of Article Fourteen of the Operating Rules and Procedures of the Reconciliation Centre.
• If one of the parties to the reconciliation withdraws at any stage of the reconciliation.
• If reconciliation is not possible due to a party’s death, expiry of his legal personality, or any other reason.
• If reconciliation hearings exceed the number of hearings or periods provided for in Article Sixteen of the Operating Rules and Procedures of the Reconciliation Centre.
• If the reconciliation officer finds it is useless to proceed with the reconciliation procedures, or if the parties repeatedly breach the reconciliation manners and procedures, he may step down, and shall accordingly report same to the director of the reconciliation office to decide whether to terminate the reconciliation or refer it to another reconciliation officer.

The reconciliation report is deemed as a writ of execution, and accordingly it is submitted via Najiz by choosing (execution request) and attaching the writ of execution (reconciliation report); and the provisions stipulated in the Enforcement Law shall apply.

A paper or electronic document wherein is recorded the settlement agreed upon by the parties to the reconciliation and approved for implementation.

The statutory term is thirty (30) days, beginning with the receipt of the request and ending with the issue of a reconciliation report or a report that reconciliation is impossible.

Should the parties or one of them be absent for the hearing, the office shall set another date within seven days from the first date and shall as much as possible observe that the new date be suitable for the parties. If the parties or one of them is absent for the second time or it was not possible to notify them, the reconciliation request shall be dismissed, and, in case of referral, the court which referred the request shall be notified.

The reconciliation shall be carried out by a reconciliation officer registered with Taradhi Platform and shall be well versed in Franchise Law and its Implementing Regulations.

Yes, the parties to the reconciliation have the right to authorize others to attend the reconciliation sessions. The text of the power of attorney shall include the following:
1. If the party to the agency is an institution / commercial company, the agency shall be in his capacity as the owner of the institution or the legal representative / company and not in his personal capacity.
2. The content of the power of attorney shall be: Reconciliation, assignment, receipt of amounts - if the agent will receive the amounts.

A special service to amicably settle all types of disputes arising between the parties to the franchise agreements as a first stage and ensure easy and speedy procedures to bring views closer.