Business Development Services

Franchising

Franchising value

Franchising Importance

01

Rapid business expansion

Franchising provides an opportunity to expand your trademark without the need for large investments.

02

Trademark protection

The Company ensures that the trademark identity is maintained across different markets.

03

Reduced risk

Franchising helps reduce operational risks while maintaining high quality standards.

Franchise Contract Terms & Conditions

To ensure the success of the Franchise, the following conditions & terms must be considered:

Trademark Rights

The franchisee's rights to use the trademark and how to benefit from 
it must be clarified.

Geographical Area

Determine the area in which the franchisee 
can operate.

Duration

Agree on the duration of the contract, which is often between 5 to 10 years with the possibility of renewal.

Financial Obligations

Include the prescribed fees or the percentage of profits paid by the franchisee to the franchisor.

Training & Support

franchisors Provide ongoing training and support to ensure the success 
of operations.

Quality & Standards

Quality standards and specified processes must be kept maintaining 
the reputation of the brand.

Intellectual Property Rights

Protection of intellectual property rights related to the trademark must be ensured and any infringement thereof must be addressed and prevented.

Benefits

Why Franchise with The Saudi Intellectual Property Rights Company

Field Experts

Providing tailored legal consultations that meets your business needs locally & internationally.

Customized Solutions

Providing comprehensive legal solutions that suit your business by identifying the best geographic expansion strategies.

Strong Legal Protection

Providing full legal protection for all aspects of franchise contracts and agreements, starting from the brand to contract drafting and conclusion.

Continuous Step-By-Step Support

From the start of negotiations to the successful implementation of the franchise, to ensure that the parties adhere to the terms.

Quality Commitment

Ensuring that franchise operations are in accordance with the highest standards to ensure the protection of the trademark and enhance its market value.

Comparison

The most important differences between Franchising, Licensing & Agency

Element

Franchising

Mediation

Agency

Definition

Granting the right to use the trademark and
business model in return for a fee or a percentage of the profits.

Granting the right to use intellectual
property, such as a trademark, trade name, or patent.

Appointing an agent to distribute products or provide services on behalf of the principal.

Business Model

Unified business model

Does not include a business model, only the
use of the trademark or other intellectual property.

It does not include a unified business model.

Trademark

Use of franchisor's trademark.

It may include rights to use a trademark or
trade name.

The agent may or may not use the mark, asagreed.

Support & Training

Ongoing training and support from the
franchisor.

No associated support or training.

No binding support

Financial Obligations

Initial fee and percentage of profits.

Fees for use of intellectual assets or a
percentage of revenues

Commissions or fees on sales

Geographical Area

Exclusive rights in a specific area, usually

May be exclusive or non-exclusive depending
on the agreement

May be exclusive or non-exclusive

Intellectual Property Rights

Benefits from intellectual property rights
for the duration of the agreement

Rights to use intellectual assets such as a
trademark or patent.

No intellectual property rights

Risks

The franchisee bears the risks of operating
the business

The licensee bears the risks of using the
intellectual assets

Principal bears the greatest risk

Contact us

If you have any questions, suggestions, or would like to request a service, 
we’re always here to help. You can reach out to us in 
a way that’s most convenient for you

Frequently asked questions