Article 15 of the Saudi Franchise Law

This article gives the franchisee protection when the term of the agreement ends, and applies unless the agreement provides otherwise.

The procedure: If the franchisee wishes to renew or extend, he must give the franchisor written notice at least 180 days before the date the agreement ends.

The effect: The agreement is renewed or extended for a similar term to its agreed term and on similar terms, except in the following cases:

1. The two parties agree on new terms.
2. One of the cases provided for in Article 18 occurs, which are grounds for lawful termination, such as the franchisee breaching his essential obligations and not remedying the breach within 14 days of written notice, or stopping voluntarily for more than 90 consecutive days, or losing the necessary licenses, or committing commercial fraud, or infringing the franchisor's intellectual property, or any case the agreement says is a lawful ground.
3. The franchisee does not pay the consideration due under the agreement.
4. The franchisor approves the franchisee's assignment of the agreement before it ends to a person who meets the approved criteria.
5. The franchisor no longer wishes to carry out the franchise business or grant a franchise for it in the Kingdom.
6. The franchisee does not conclude the renewal or extension agreement according to the franchisor's reasonable requirements at least 60 days before the agreement ends.

It is followed by Article 16, which sets the grounds on which the agreement ends by death, liquidation and others. Because the cases are many and detailed, it is advisable to consult a lawyer who specializes in commercial cases before the end date approaches.