The franchise sector in Saudi Arabia operates under a rigorous transparency framework imposed by the Saudi Franchise Law, issued by Royal Decree M/22. The framework's central idea is protecting local franchisees from unbalanced practices, by obliging the franchisor to disclose upfront and to register the agreement within a fixed window. This page covers the requirements, steps, and fees, as part of the business materials on Hala Law.
The governing rule: the 90-day window
The law requires the franchisor to register the fully executed franchise agreement and the accompanying franchise disclosure document with the Ministry of Commerce within 90 days of signing. This deadline is not a formality: missing it strips the agreement of its legal standing, rendering it unenforceable in Saudi courts. Deal timelines for any franchise transaction are therefore usually built around this date from the day of signature.
Prerequisite: a registered trademark
No franchise agreement is recognized without a valid trademark registered with the Saudi Authority for Intellectual Property (SAIP). In practice this means the trademark track precedes the franchise track — trademark registration can take several months, with total official fees of SAR 7,575 per class per the June 2026 baseline. The full details are in trademark registration.
Required documents
| Document | Notes | | --- | --- | | Signed franchise agreement | In Arabic or with a certified translation | | Franchise disclosure document | Outlining fees, litigation history, and investment estimates | | Franchisor corporate documents | The granting entity's records | | Trademark certificate | Issued by SAIP |
Registration steps
- Access the Ministry of Commerce portal.
- Open the commercial franchise registration service.
- Upload the franchise agreement and the disclosure document.
- Settle the fee via SADAD.
The steps above reflect the last verification in June 2026; names and labels may change as the platforms are updated.
Fees and timeline
Per the June 2026 baseline:
| Item | Amount | | --- | --- | | Initial registration fee | SAR 500 | | Modification fee | SAR 100 | | Timeline | Immediate digital certificate issuance upon successful backend review and fee settlement |
Why this is a drafting file before a procedure file
The digital procedure itself is simple and its fees are low, but the real work sits upstream: drafting a disclosure document that satisfies the stringent Saudi disclosure standards, and localizing the master franchise agreement — which often arrives in foreign form — to Saudi statutes, including the Civil Transactions Law. Clauses such as liquidated damages, termination, and compensation are subject to statutory controls that may differ from what a franchisor is used to in other markets, and each such clause shifts or allocates a specific risk whose effect on the specific situation needs reading before signing.
If entering the franchise involves setting up a new entity to operate it, the materials on incorporating an LLC and issuing a commercial registration cover that path.
When do you need a licensed lawyer or advisor?
The information here is a general framework, not an assessment of a specific case. Franchise files in particular are commonly cited as requiring specialized franchise attorneys, and the need becomes clearest when:
- The disclosure document needs drafting that satisfies Saudi disclosure standards and covers fees, litigation history, and investment estimates.
- The agreement is a foreign master franchise agreement needing localization to the Civil Transactions Law and related statutes.
- The 90-day deadline is approaching and there is disagreement over whether the file is complete.
- A dispute arises over an agreement already signed, where each party's position turns on the facts of registration, drafting, and documents.
In those situations, assessing the position depends on reviewing the full agreement and its documents — not on a single general rule.