Arab Journal of Administration المجلة العربية للإدارة


Under the attention of Saudi Arabia Government in creating an appropriate investment environment that is compatible to the modern economy. The importance of this study was to determine the most important elements of qualified Saudi organizations about getting franchise at a time when the franchise has proved a great success in the Saudi market and in different areas. The objectives of this study recognize the reality franchise organizations in Saudi Arabia, and the elements of those qualified organizations from the standpoint of national companies benefiting from franchise businesses. The researcher used descriptive analytical method which is based on the study of the reality of the phenomenon; and describes an accurate description and expressed an expression qualitatively and quantitatively, so the design and application of a questionnaire to collect field data of the study population, which amounted appointed (267) spread over different areas of the kingdom in a variety of business fields. The study reached the following findings: approval (55%) of the sample of the study on the availability of the elements of the legal qualification for franchise contracts to Saudi Arabia organizations benefiting from the franchise, especially with regard to the financial rights of franchisors; and intellectual property rights (trademark, patent and copyright). As reported (50%) of the respondents that they have the ingredients to qualify for the work of the franchise system, particularly with regard to evidence of operation and organization, training, management, marketing, accounting and control; and make sure there is enough demand for the product or service subject of the contract in the beneficiary market; and familiarity with the conditions and requirements and procedures of targeted franchise. The study also indicated that (45%) of the sample have the ingredients to qualify for management franchise projects, particularly with regard to determining the amounts required to be invested by the franchisee, and determining the duration of a franchise, and regulate the relationship between the parties to the contract, and to determine the minimum time for the return of the investment of the targeted franchises. In contrast, we find that (55%) of the sample do not have the ingredients of rehabilitation management franchise, especially with regard to the processing and operation of the storage, maintenance, security and safety systems, and provide preparation of production, marketing, financial management reports, and the selection and training of the project team, and the adoption of a system of quality control in the models all phases of the project, and the preparation of evidence, procedures and guidelines implementing the business. While (63%) have the ingredients to qualify for the marketing and promotion of products and services franchise, especially with regard to the preparation of short, medium and long-term marketing plans, and the preparation of economic and marketing feasibility studies.