Obligations of the Franchisor and Franchisee in Saudi Franchise Law (Comparative Study)

Abstract

The Kingdom of Saudi Arabia is one of the most critical countries in the Middle East and the largest market in the region. At present, the legislator thinks of expanding trade and relying on diversified revenues for the country and reducing the total dependence on oil as the primary source. Strengthening small and medium commercial enterprises and improving the business environment is one of the essential elements to open a new window for relying on diversified economic sources. Therefore, the existence of a law regulating the franchising process was one of the most important laws that the legislator must submit in order to encourage institutions and startups to expand and to clarify the obligations of the franchisor and the franchiseein order to establish a balance in the contractual relationship and not to oppress the weak party in the franchise contract, which is franchisee. The main objective of this research is to clarify the obligations of the parties to the franchise contract based on the franchise law and compare it with other laws to clarify whether the Saudi legislator benefited from other laws in regulating the concession process. The first chapter of this research provides a comprehensive overview of the franchise, how it emerged and originated, and the first countries dealing with franchising. The second chapter talked about the franchise in Saudi Arabia what the laws followed before the issuance of this law. Also, it clarified the obligations of the franchisor and franchiseeunder the Saudi Franchise Law, which is the essence of this thesis. Finally, the last chapter of this thesis discussed American Franchise law and the Franchise Law in European countries, The major reason behind choosing US franchise law and franchise laws in EU nations is that certain of the Franchise rules and regulations are identical to Saudi franchise law, which will be discussed later in this thesis.