Registering a Franchise Agreement: Steps, Deadlines, Documents
Every signed franchise agreement must be registered with the Franchise Center at Monsha'at within 90 days — who registers, the steps, and the penalty for missing it.
A franchisor must register every signed franchise agreement — and its related disclosure document — with the Franchise Center at Monsha’at within 90 days of signing. Registration is a statutory obligation, not a formality: missing it is a breach that opens termination and compensation for the franchisee, plus a fine of up to SAR 500,000.
Who must register
The obligation sits with the franchisor under the Franchise Law (Royal Decree M/22 of 1441H) and its Implementing Regulations, and it extends to foreign franchisors whose franchises operate in the Kingdom, Saudi brands granting franchises, and master franchisees — who are treated as franchisors toward their sub-franchisees and must register the sub-franchise agreements (more on master franchising).
Where and how
Registration runs electronically through the Franchise Center’s registration service at the Small and Medium Enterprises General Authority (Monsha’at) — covering registration, amendment, and cancellation. The steps: sign in (business account or national single sign-on), complete the franchise details, attach the documents — led by the signed agreement and the disclosure document — pay the fee, and print the certificate once the entry is approved. Material amendments and renewals must be reflected in the record as well.
The cost of not registering
Missing the 90-day window is a material breach: the franchisee may terminate without liability and claim asset repurchase and compensation, and the franchisor faces the fine. An unregistered agreement also weakens the franchisor’s position in any dispute. Note that delivering the disclosure document 14 days before signing is a separate, earlier obligation.
For the practice overview: Franchise Law in Saudi Arabia.
Frequently asked questions
What is the deadline to register a franchise agreement?
Within 90 days of the agreement's signing, together with the related disclosure document.
Where is a franchise registered?
With the Franchise Center at Monsha'at, electronically through its platform.
Who registers — franchisor or franchisee?
The franchisor. A master franchisee registers its sub-franchise agreements as if it were the franchisor.
Does a foreign franchisor's agreement need registering?
Yes — the obligation applies to franchises operated in the Kingdom regardless of the franchisor's nationality.
What happens if the 90 days pass?
It is a material breach: the franchisee may terminate without liability and claim repurchase and compensation, and the franchisor faces a fine of up to SAR 500,000.
Do amendments and renewals need registering too?
Yes — material amendments and renewals must be reflected in the record; the e-service covers registration, amendment, and cancellation.