Buying a Franchise in Saudi Arabia: How to Interview Existing Franchisees

Before buying a franchise in Saudi Arabia, look beyond the franchisor’s presentation or a visit to a busy outlet. Structured conversations with current and former franchisees reveal how the relationship works in practice and what needs written clarification before you commit. These interviews offer practical insights that marketing materials cannot replace, provided you speak to people with varied experiences and avoid treating one person’s experience as a definitive verdict on the brand.

Choose a sample that goes beyond success stories

Ask the franchisor to arrange introductions, with the consent of those involved, to franchisees with different experiences. Speak to someone who has recently opened an outlet, someone who is past the start-up stage, and someone operating in a city or location similar to the one you are considering. If possible, speak to a former franchisee to understand why they left, without assuming that leaving means the venture failed.

Distinguish between the manager of a franchisor-owned outlet and a franchisee investing on their own account. A manager can explain day-to-day operations, but a franchisee is better placed to describe the contractual relationship and the experience of bearing costs and making decisions. Both perspectives are useful, but they do not carry equal weight on every subject.

Do not automatically treat the franchisor’s suggested contacts as an unbiased sample. Ask why they were chosen, and try to reach other franchisees professionally through publicly available contact channels. Do not pose as a customer to obtain private information or pressure anyone to disclose details they are prohibited from sharing.

If you cannot speak to independent franchisees, record this as a limitation on your ability to verify claims, rather than conclusive evidence against the brand. Ask the franchisor for an alternative, such as a group meeting or an agreed visit with the franchisee present.

Use consistent questions to establish the facts

Prepare a single interview template so you can compare responses. Start with the context: when did the outlet open? Does the owner manage it personally? Did they have previous experience? Is their location similar to the one you are considering? These details help you interpret the answers rather than apply them directly to your own venture.

Next, focus on questions that call for specific examples rather than general impressions:

• What do you wish you had known before signing the agreement?
• What was the biggest difference between preparing to open and actually running the business?
• When you encountered a problem with the franchisor, how did you raise it, and what was the outcome?
• Which day-to-day decisions require approval, and how do you obtain it in practice?
• Are there tasks that take up more of the owner’s time than you expected?
• If you were starting again, which question would you insist on having answered in writing?

When you hear ‘responses are quick’ or ‘the relationship is difficult’, ask for an example, an approximate date and the outcome. The issue may have been an old incident that has since been resolved, or it may be an ongoing pattern worth investigating. Also ask what the franchisee could have done differently: a balanced interview does not attribute every success or setback solely to the franchisor.

Do not ask for trade secrets, customer data or copies of confidential documents. Take notes, ask permission before recording the conversation, and agree whether comments may be shared with attribution or anonymously.

Compare accounts, then ask about discrepancies

After the interviews, create a simple table recording the topic, what each person said, when the experience occurred and what needs further verification. Distinguish between events the speaker witnessed first-hand, personal assessments and information heard from others. Repeating a second-hand account does not make it an established fact.

Give greater weight to experiences that resemble your own circumstances, but do not ignore the differences. A multi-unit franchisee may have a management team that a new buyer will not have, and their relationship with the franchisor may differ from that of a single-outlet owner. Conditions in a small city may also differ from those at a high-rent location in a major city.

Put recurring patterns to the franchisor in neutral terms. Rather than saying ‘franchisees are dissatisfied’, ask: ‘Several interviews suggested that operational approvals are delayed. What is the established process for requesting approval and following up?’ Depending on the issue, ask for an explanation you can verify, a sample procedure or contractual clarification.

Do not reduce the decision to an average satisfaction score. One documented concern about a material obligation may matter more than several general statements of praise. Equally, do not make an undocumented personal dispute your sole reason for ruling out the brand.

Turn your findings into clear terms before signing

Franchise agreements carried out within Saudi Arabia are subject to the Commercial Franchise Law, with due regard to its stated exceptions. Its Implementing Regulations set out further relevant requirements. Article 7 requires the franchisor to provide the franchisee with a disclosure document at least 14 days before the agreement is signed or any payment relating to the franchise is made, whichever comes first. Plan your interviews early, and do not treat them as a substitute for the disclosure document or legal review.

Article 11 also specifies matters that the agreement must cover, including obligations relating to training, technical and marketing expertise, and financial consideration. If the interviews reveal uncertainty about an important obligation, ask for it to be clarified in the agreement or an appropriate annex, rather than relying on verbal reassurance.

Do not assume that a benefit granted to another franchisee will also apply to you: their agreement or the date they entered into it may differ. Take significant issues to a specialist lawyer, and identify what has been resolved and what remains outstanding.

Practical takeaway: Interview franchisees with varied experiences, ask about specific events, then turn every material concern into a documented question with a clear answer before paying or signing.