Commercial franchising system to be issued soon: Al Qasabi

The Saudi Ministry of Commerce and Investment has concluded the commercial franchising system and will issue it soon, Saudi Press Agency (SPA) quoted minister Majid Al Qasabi as saying during his keynote speech at the 11th ministerial conference organized by the Council of Saudi Chambers in collaboration with the Chamber of Commerce and Industry in Hail.

The ministry worked with the Council of Saudi Chambers on reviewing the regulations, rules and procedures to improve the business environment, he added.

Al Qasabi highlighted the crucial role of government entities in empowering and motivating entrepreneurs, through facilitating the required procedures and licensing process.

In March, Saudi Shura Council has approved the issuance of the commercial franchising system, Argaam reported earlier.

The draft system consists of 26 articles and aims to encourage commercial franchise activities in the Kingdom, through the development of a regulatory framework governing the relationship between the franchisor and the franchisee.

This is in addition to the establishment of the principle of freedom of contract, laying the foundations for this relationship based on the principle of transparency, and providing the necessary protection for the franchisor and franchisee, particularly, when the concession agreement expires.