What is a Franchise Agreement? A franchise agreement is the document that outlines the terms and conditions between the franchisor and the franchisee. However, defining the franchise agreement in Saudi Arabia requires addressing different types of franchise contracts recognized under the Saudi Franchise Law. Clarifying these contractual models is essential to establish a clear understanding of legal relationship between the parties, distinguish franchise agreements from other contractual arrangements, and define the regulatory boundaries of the rights and obligations of both the Franchisor and the Franchisee The most common types of franchise agreements Saudi Arabia include: Master Franchise Agreement This agreement grants the Franchisee the authority to operate the franchise within a wide geographical region and to grant sub-franchise rights to