Franchise and technology transfer agreements

Franchising in the Kingdom is governed by the Franchise Law, which requires the franchisor to give a disclosure document before the agreement is signed, requires franchise agreements to be registered with the Ministry of Commerce, and protects franchisees on renewal and termination.

We act for international franchisors entering the market, Saudi master franchisees building networks, and Saudi brands expanding abroad. Our work covers the disclosure document, the master and unit agreements, development schedules, fees, supply obligations and the protection of the brand and know-how.

Technology transfer agreements license patents, software and know-how to Saudi partners and factories, often as part of localisation and local content programmes. We draft the licence, the training and support terms and the protections for improvements, and address withholding tax on royalties and the registration of licences with the Saudi Authority for Intellectual Property.