The franchise system is relatively new but growing in the Saudi market, according to experts who spoke at the seminar on the sidelines of the Jeddah Franchising Exhibition.
Jeddah Governor Prince Mishaal opened yesterday the two-day exhibition being held at the lobby of the Jeddah Chamber of Commerce and Industry (JCCI). Thirteen franchising companies, local and international, are exhibiting their products and services as well as two funding sources, the private ALJ Fund for Small Businesses and the public Small Enterprises Development Center by the General Organization for Technical Education and Vocational Training.
Organized by the Jeddah Small Businesses Support Center at JCCI and the Franchise Development Services Company, the exhibition and seminar aimed at informing potential businessmen about the franchise system and its potential in Saudi Arabia.
Mazin Battarjee, deputy chairman of the JCCI, talked about the role of the chamber in supporting and developing small businesses by reducing the risks involved, facilitating funding and improving the trade, industry and services environment in order to create investment opportunities.
Franchise expert Sary Hamway went through the steps and procedures involved in starting and developing a franchise while legal consultant Sharif Akkad explained the legal aspects of franchise agreements.
Akkad pointed out the difference between independent agency agreements, which is more common, and the franchise agreements. He went into detail about the contracts content, rights and obligations.
However, he also pointed out that in Saudi Arabia there is no system regulating franchise agreements yet at the Ministry of Commerce. There is a project underway of developing a system for franchises.
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