Almadina, 14 January 2023: Saudi Arabia’s Trade Ministry has decided to amend Saudi Arabia Royal Decree No. M22/1441 on the Commercial Franchise Law to tackle the challenges investors face and encourage franchising.
According to the amendments, three requirements have been cancelled in Article 13. This includes eliminating the requirement for parties granting franchises to provide a financial status confirmation.
It is now the parties’ choice whether or not they give financial statements for the last two years to confirm that a party can pay debts once they mature.
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