Article 12 of the Saudi Franchise Law

This article is a referral article: it does not set rules for advertising itself, but provides that the Implementing Regulations set the provisions relating to advertising and marketing activities connected with the franchise.

What does that mean in practice?

• That advertising and marketing a franchise is a regulated activity and is not left entirely to the franchisor's discretion.
• That the details of these controls, such as what may be stated in an advertisement or what must be disclosed in it, do not appear in the text of the article, and the Regulations must be consulted for them.

This article comes after Article 11, which sets the form of the franchise agreement and its mandatory terms, including that it be written in Arabic and signed by both parties and include "any other term the Implementing Regulations specify". It is followed by Article 13, which regulates the franchisor's approval of the franchisee's assignment of the agreement or a change in the person controlling him.

Since the article does not state any details, it cannot be relied on alone to know what is allowed in advertising. Anyone planning a marketing campaign for franchise opportunities is best advised to check the Implementing Regulations or consult a lawyer who specializes in commercial cases.