Article 11 of the Saudi Franchise Law

This article sets the form of the franchise agreement and the minimum of its content.

First: Form - The agreement must be written in Arabic and signed by its two parties; if it was drawn up in another language it must be translated into Arabic by an approved translation.

Second: Mandatory terms - In addition to what the two parties agree, the agreement must include:

• The franchise business and its description, the term of the agreement and how it is amended, and its geographic scope.
• Any consideration the franchisee pays: the franchise consideration, the consideration for training (if any), technical support, and the mechanism for calculating the price of goods or services provided by the franchisor or his group.
• The parties' obligations on training, and the franchisor's obligation to provide technical, marketing and other expertise.
• The franchisee's obligation to follow instructions and the way of marketing and display, and to preserve the franchise identity.
• Supply obligations, and the franchisee's obtaining goods or services from the franchisor directly or through another party on his instructions.
• The rights to use the trademark and intellectual property, and the parties' obligations and compensation in case of breach of them.
• The mechanism for settling disputes.
• The extent of the franchisee's right to grant a sub-franchise and its provisions.
• The effects of any change in the ownership of either party or of the person controlling either.
• Any other term the Implementing Regulations specify.

It is followed by Article 12, which refers to the Implementing Regulations the regulation of advertising and marketing connected with the franchise, and preceded by Article 10, which requires the agreement to be performed in good faith. Having the agreement reviewed before signing by a lawyer who specializes in commercial cases helps ensure these terms are complete.