His Excellency Dr. Majid bin Abdullah Al Qasabi, Minister of Commerce and Investment, extended his sincere thanks and appreciation to the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and to His Royal Highness Prince Mohammed bin Salman bin Abdulaziz, Crown Prince and Deputy Prime Minister and Minister of Defense, for the Cabinet's approval on the Franchise Law.
H.E. Dr. Al-Qasabi pointed out that approving the Franchise Law comes within the accelerated steps to build the legislation for the commercial systems. This goes in line with the Kingdom's Vision 2030, and this step is considered an important economic source for promoting and enhancing the efforts to improve the commercial and investment environment.
H.E. Dr. Al Qasabi explained that the franchise industry is a huge global market that enables major international companies to access local markets, and it does open new horizons for small investors and he/she entrepreneurs to expand and develop their business.
This system encourages franchise activities in the Kingdom by establishing a regulatory framework for the relationship between the franchisor and the owner of franchise on a basis that promotes the principle of transparency and clarity. It provides the necessary protection to the franchisor and to the grantor. This system enables also the franchise parties to make sound investment decisions that contribute to raising the quality of goods and services offered in the Kingdom.
It is noteworthy that the provisions of the Franchise Law apply to any franchise agreement implemented inside the Kingdom of Saudi Arabia. This system sets a minimum experience for granting the franchise, also it does regulate the relationship among the parties of the franchise contract, besides determining the rights and obligations, as well as obliging those granting the franchise to disclose the most important risks, rights and obligations relevant to the franchise opportunities, in addition to regulating the terms of renewal, termination or assignment of the franchise agreement.