Article 27 of the Saudi Franchise Law

المادة 27 من نظام الامتياز التجاري · الفصل الحادي عشر: أحكام ختامية

The article provides that the Franchise Law takes effect 180 days after its publication in the Official Gazette and repeals every provision that conflicts with it.

Official text (Arabic)

This article has not been amended since the law was issued.

يعمل بالنظام بعد مضي (مائة وثمانين) يوماً من تاريخ نشره في الجريدة الرسمية، ويلغي كل ما يتعارض معه من أحكام.

This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers

Article 27 explained in plain English

This article is the effective-date article, and contains two provisions:

1- When the Law takes effect: The Law takes effect after 180 days from the date of its publication in the Official Gazette. That is, the Law did not become effective as soon as it was published, but after a transition period, to enable those concerned to prepare for its provisions. The article does not state the date of publication itself, which is known from the Law's publication details.

2- Repeal of conflicting provisions: The Law repeals every provision that conflicts with it. The article does not name particular provisions, so the repeal covers every provision that conflicts with the Law without naming it.

Its relationship to Article 26: Article 26 requires the Minister to issue the Implementing Regulations within 180 days of the date the Law is published, and provides that the Regulations take effect from the date the Law takes effect. The two dates were thus designed so that the Law and its Regulations begin to apply together. Article 26 also sets out what the Regulations must include, such as agreement templates, disclosure requirements, registration fees and the body competent to apply them.

In practice, this provision matters to anyone who wants to know whether the provisions of the Law apply to an act or agreement at a particular time. To determine the effect of the effective date on a particular existing agreement, it is advisable to consult a lawyer who specializes in commercial cases, since the article does not address agreements concluded before it took effect.

Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.

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