Buying a Franchise in Saudi Arabia: How to Assess the Franchisor’s Training Commitments

The phrase ‘we provide comprehensive training’ may sound reassuring when buying a franchise, but it does not tell you who will receive training, what they will learn or when your team will be ready to operate. In Saudi Arabia’s franchise sector, knowledge transfer helps turn a brand into a consistently repeatable operation. Review training as a contractual commitment with a defined scope, costs and outcomes, rather than simply a selling point.

1. Start with what the agreement must specify by law

Saudi Arabia’s Commercial Franchise Law and its Implementing Regulations govern the relationship between franchisors and franchisees. The law requires the agreement to set out both parties’ obligations regarding the franchisor’s training of the franchisee’s employees, any training fees, and the franchisor’s commitment to providing the technical, marketing and other expertise required by the nature of the franchise.

These requirements do not mean that all training is free, nor do they determine how many training days or participants your business needs. You must examine the details you agree to in the contract. If the proposal says training is included but the contract allows fees to be charged, ask for this inconsistency to be resolved in writing before signing.

The law also requires the franchisor to provide the disclosure document at least 14 days before the agreement is signed or any franchise-related payment is made, whichever comes first. Use this period to compare the training descriptions and costs in the disclosure document, proposal and agreement. Ask for the agreed programme to be attached to the contract rather than relying on a general message from a sales representative.

2. Define who will be trained and what they must master

Ask for a plan tailored to the roles at your outlet, rather than a generic description that could apply to any brand. An outlet manager’s needs differ from those of a customer service employee or stock controller. The owner may also need to understand reporting and oversight, even if they will not work at the outlet every day.

The plan should answer specific questions:

• Who is covered by the basic fees, and how many training places are included?
• Is training delivered in person or remotely, and where does it take place?
• What language is used for instruction and materials, and is it suitable for the team you intend to recruit?
• What practical training is included, and which equipment or systems will it use?
• Who assesses trainees, and how are the results recorded?

Link each topic to an observable outcome. Instead of ‘management training’, ask for specific skills to be listed, such as completing end-of-day accounts, checking stock, handling complaints and operating the point-of-sale system. The aim is not to impose a standard checklist on every brand, but to ensure the programme suits your business.

Also ask for a sample timetable from a previous training programme or learning materials that can be shared. This helps you check the level of detail, but it is no substitute for a written commitment to train your team.

3. Calculate the full training cost and establish who pays

The trainer’s fees may be included in the franchise fee, while travel, accommodation and wages remain your responsibility. Create a separate schedule showing each cost, who pays it, when it is due and whether it is fixed or calculated using a specified method.

Your review should cover employees’ travel, accommodation and wages during training, consumable materials, assessment fees and the cost of bringing a trainer to your premises. Also check whether quoted amounts include VAT where applicable, so that you compare proposals on the same basis.

Then consider a common scenario: what happens if the trained manager leaves before opening? Ask about the cost of training a replacement, whether you can substitute a participant before the course begins, and any cancellation or rebooking fees. If the franchisor requires further training after a participant fails an assessment, ask for its cost and how the need for it will be determined.

Do not assume that ‘ongoing training’ means unlimited courses. Specify what the basic fee covers, what is charged separately and how additional expenses must be approved before they are incurred.

4. Link training to operational readiness and the opening date

Training can delay your opening if its timing is undefined or if the franchisor requires participants to pass without setting clear criteria. Ask for a timetable that takes recruitment and site preparation into account, and specifies what you must provide and what the franchisor must deliver.

If passing the training programme is a condition of approval to open, negotiate objective criteria, a deadline for communicating results and an opportunity to address shortcomings. Distinguish between delays caused by your employees’ absence or equipment not being ready, and those caused by the franchisor failing to provide a trainer or deliver training on the agreed date.

It is also useful to agree a written procedure for situations where training cannot go ahead: rescheduling, providing a suitably qualified replacement trainer or offering an appropriate alternative programme, with responsibility for additional costs clearly allocated. These are arrangements to negotiate and document clearly, not automatic remedies guaranteed simply by the existence of franchise legislation.

5. Separate initial training from subsequent support

A pre-opening course is not the same as having a support team on hand during actual operations. Ask whether the package includes on-site support at opening, how long it lasts, what duties it covers and whether the trainer only provides guidance or carries out specific operational tasks.

For the period after opening, define how new employees will be trained, how product and system updates will be addressed, and how learning materials will be made available. Ask for attendance and assessment records, alongside a plan to address skills gaps, so that you can track the impact of training rather than relying solely on certificates of participation.

Practical takeaway: Before signing, ask for a training schedule attached to the agreement that specifies participants, content, timing, costs, pass criteria and responsibility for delays. If the promise remains vague, do not assume that your team’s readiness or the cost of preparing them has been settled.