Franchise Registration (Registration - Modification

Franchise Registration (Registration - Modification - Cancellation)

Description

Merchant

Commercial Register

Business sector

An electronic service provided by the Commercial Franchise Center, which allows beneficiaries to register and manage the commercial franchise, which is provided in accordance with the Commercial Franchise System and its executive regulations, electronically without the need to visit the Commercial Franchise Center or the Ministry’s branches.

Click on Start Service.
Choose the system login icon
Log in to the account (username and password) or log in via National Access
Fill in the data and attach documents
Pay fees, review the registration and print the certificate
In case of (modification, cancellation), the previous steps can be followed.

Conditions for Granting a Franchise: 1- A franchise opportunity may not be offered, nor a franchise granted, unless the franchise activity has been operated according to the franchise activity model for a period of no less than one year by two individuals or in at least two different outlets. One of these individuals may be the Franchisor or any person within its group. 2- If the Franchisor does not operate the franchise activity within the Kingdom itself, a Franchisee who holds the right to grant sub-franchises may not offer a franchise opportunity or grant a franchise unless it, or other franchisees, have operated the franchise activity within the Kingdom for a period of no less than one year.
Terms and Requirements for Franchise Registration: 1- Registration with the Ministry: The Franchisor shall register every signed Franchise Agreement and related disclosure document with the Ministry within (90) days from the date of signing the agreement. This is done by depositing a copy of the agreement and the disclosure document with the competent authority within the Ministry. 2- Amendment of the Franchise Agreement: In the event of amending the Franchise Agreement by changing any of its parties or its term, the Franchisor shall register the amendment of the Franchise Agreement with the Ministry within (90) days from the date of its execution, by depositing a signed copy of the amendment. Cancellation of Franchise Registration: The cancellation of a franchise registration occurs in the following cases: expiration of the term, its lapse, or the issuance of a court ruling invalidating or terminating the agreement.
Contents of the Franchise Agreement: 1- The Franchise Agreement must be written and signed by both parties. If it is drafted in a language other than Arabic, it must be translated into Arabic by a certified translator. 2- In addition to what is agreed upon between the parties, the Franchise Agreement must include the following points: 1- The franchise activity and its description, the term of the agreement, the method of its amendment, and its geographical scope. 2- The financial consideration that the Franchisee must pay to the Franchisor, which includes the franchise fee, the fee for training the Franchisee's employees (if any), technical support, and the mechanism for calculating any amount paid as consideration for goods or services provided to the Franchisee by the Franchisor or any person within its group. 3- The obligations of both parties regarding the Franchisor's training of the Franchisee's employees. 4- The Franchisor's obligation to provide technical, marketing, and other expertise necessary for the nature of the franchise. The Franchisee's obligation to adhere to instructions related to marketing, presentation, and maintaining the franchise identity. 6- The Franchisor's obligations in supplying goods or services to the Franchisee, and the Franchisee's obligation to obtain those goods or services directly from the Franchisor or through a third party according to the Franchisor's instructions. 7- The Franchisee's rights to use trademarks and any other intellectual property rights related to the franchise activity, and the obligations of both parties in the event of infringement of intellectual property rights and the resulting compensation. 8- The mechanism for settling disputes related to the Franchise Agreement. 9- The Franchisee's right to grant sub-franchises to others and the provisions thereof. 10- The implications of a change in ownership of the Franchisee, the Franchisor, or the controlling person of either. 11- If there are any restrictions imposed on the franchisee regarding the transfer of any of their rights under the Franchise Agreement to a third party. 12- If the owner of the trademark, trade name, or any other intellectual property rights used in the franchise activity is specified, and the Franchisor's relationship with the owner if the Franchisor is not the owner. 13- The rights and obligations of both the Franchisor and the Franchisee regarding the termination of the Franchise Agreement. 14- The Franchisee's right to renew, not renew, or extend the Franchise Agreement, if any. 15- The rights and obligations of both the Franchisor and the Franchisee resulting from the termination or expiration of the Franchise Agreement. 16- If there are any restrictions imposed on either the Franchisor or the Franchisee regarding engaging in any business/ activity that competes with the franchise activity during the term of the Agreement or after its termination or expiration, without prejudice to the provisions of the Competition Law. 17- The Franchisee's obligation not to harm the reputation of the Franchisor and the franchise activity. 18- The Franchisee's obligations related to the location or premises of the franchise activity, if any, and its right to change that location or premises, if any. 19- The obligations of both the Franchisor and the Franchisee related to the confidentiality of information and data protection.
Requirements for the Disclosure Document: 1- The Franchisor must provide the Franchisee with a copy of the disclosure document in accordance with what the regulations specify, at least (fourteen) days before the conclusion of the Franchise Agreement or from the date the Franchisee pays any consideration regarding the franchise, whichever is earlier. 2- It must be written in Arabic, and if it is written in a language other than Arabic, it must be translated into Arabic by a certified translator. 3- It must be clear and accurate. 4- If the Franchisor provides the Franchisee – with whom they intend to contract – with information related to the past or expected financial performance of the franchise activities owned by them or any person within their group; they must include this information in the disclosure document and ensure that it meets the provisions and conditions specified by the regulations.

(Franchise Registration): 1- Franchise Agreement. 2- Disclosure Document.
(Amendment of Franchise Registration): 1- Amended Franchise Agreement. 2- Amended Disclosure Document.
(Cancellation of Franchise Registration): 1- Expiration of the term or termination by a court ruling invalidating or terminating the Agreement. In case of a court ruling, the document should be attached.

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