Specialized: 250 thousand brands franchise worldwide

The Center for Small and Medium Enterprises in the Asharqia Chamber organized a meeting on Monday evening, March 14, 2022, that reviewed the legal dimensions of commercial concession contracts.

The founder and Chairman of the Board of Directors of the Saudi Franchise Association, Lawyer Khaled bin Amin Youssef, said during the meeting that the franchisor is the main owner of the trademark, who grants the franchise to the second party, and he is a person with a natural or legal capacity that grants the franchise under the franchise agreement, and this includes the main franchisor concerning relating to its relationship with the sub-franchisee.​

​The Secretary explained that the franchisor is obligated to specify the rights granted to the franchisor concerning the franchise, specify the franchise business model in detail, train the franchisor’s employees, in addition to technical assistance, and also provide the franchisor, directly or through another party, with goods or services related to the franchise throughout the validity period Concession agreement, maintaining the confidentiality of information and accounting and financial data related to the franchisor’s business, in addition to responding to the franchisor’s request to provide him with details of the financial compensation owed or paid by him regarding the practice of the franchise business, and not to establish any facility that engages in an activity similar to that of the franchisor in the geographical area specified in the concession agreement, or granting the right to others to do so during the term of the agreement.​

The Secretary pointed out that 250,000 trademarks grant franchises worldwide, about 2 million units are operating under the franchise system worldwide, about 19 million people work in the field of franchising in the world, and 8 percent of consumers live around the world. In emerging markets, only 28 percent of brands operate in various countries of the foreign world, and the average local brands per country are 600 brands, and the average employment for each global franchise unit is 11 employees.