- Al Takhassousi, An Nakheel, Riyadh 12384
- info@al-tayyar.com.sa
- 0555398969
Case Study
Dispute Value
Legal Representation in Partnership, Mudarabah & Franchise Dispute – Riyadh (SAR 4M+)
SAR 4 million
Disputes involving partnership, mudarabah, and commercial franchise arrangements require careful review of the governing agreements, the parties’ rights and obligations, alleged breaches, and resulting legal and financial consequences, particularly where arbitration is involved.In this matter, Atyar Advocates and Legal Consultants represented a private client in a Riyadh-based juice and fruit retail venture with business activities exceeding SAR 4 million. The dispute concerned termination of the commercial franchise agreement and a compensation claim arising from alleged contractual breaches.The firm provided legal advice, conducted a comprehensive legal study, prepared pleadings and memoranda, carried out legal research, and represented the client before the arbitral tribunal, while maintaining strict confidentiality throughout.
Quick Matter Overview
Value of Business Activities
More than SAR 4,000,000
Investment Location
Riyadh, Saudi Arabia
Nature of the Relationship
Partnership, mudarabah, and commercial franchise
Business Activity
Juice and fruit retail outlets
Subject of the Dispute
Termination of the franchise agreement and compensation for contractual breaches
Dispute Resolution Forum
Arbitral Tribunal
Background of the Investment Relationship
The matter concerned an investment and commercial relationship between several parties involved in a Riyadh-based business operating juice and fruit retail outlets, with business activities exceeding SAR 4 million.
The parties’ relationship was governed by a combination of partnership, mudarabah, and commercial franchise arrangements, giving rise to a number of financial, managerial, operational, and contractual rights and obligations.
During the course of the relationship, issues arose concerning compliance with obligations under the commercial franchise agreement. The alleged contractual breaches required assessment of whether there was a legal basis for terminating the franchise agreement and seeking compensation for the resulting loss or damage.
The client engaged Atyar Advocates and Legal Consultants to provide legal advice, prepare the legal study, draft pleadings and legal memoranda, conduct the necessary legal research, and represent the client before the arbitral tribunal in the dispute arising from the project.
Value of Business
Project Location
Riyadh
Nature Business
Juice and fruit retail outlets
Nature Relationship
Nature of the Contractual Dispute
The legal work focused on reviewing the contractual relationships between the parties, assessing the alleged breaches connected with the commercial franchise agreement, and determining their effect on the continuation of the project and the client’s legal rights.
The principal matters reviewed included:
- Reviewing the commercial franchise agreement.
- Reviewing the partnership arrangements.
- Reviewing the mudarabah arrangements.
- Identifying the parties’ respective rights and obligations.
- Analysing the alleged contractual breaches.
- Assessing the effect of those breaches on the project.
- Reviewing the legal basis for terminating the franchise agreement.
- Assessing the compensation claim.
- Reviewing the relevant documents and correspondence.
- Determining the client’s legal position.
- Drafting pleadings and legal memoranda.
- Representing the client before the arbitral tribunal.
Essential Elements of the Dispute
Commercial Franchise Agreement
Reviewing the obligations contained in the franchise agreement and assessing the extent to which the parties complied with the agreed contractual terms.
Partnership and Mudarabah Relationship
Analysing the investment relationship between the parties and the financial and managerial rights and obligations arising from it.
Contractual Breaches
Identifying the alleged breaches and connecting them with the corresponding contractual obligations.
Termination of the Franchise Agreement
Assessing the facts and legal basis supporting the proposed termination of the contractual relationship.
Compensation Claim
Reviewing the alleged loss or damage arising from the contractual breaches and the legal basis for seeking compensation.
Arbitration
Preparing the client’s legal position, pleadings, and memoranda and representing the client before the arbitral tribunal.
Key Legal Challenges
Multiple Contractual Relationships
The relationship involved partnership, mudarabah, and commercial franchise arrangements, requiring the agreements to be reviewed together in order to understand how each affected the parties’ rights and obligations.
Identifying the Contractual Breaches
Each alleged breach needed to be identified separately and linked to the relevant contractual obligation in order to establish its legal significance.
Assessing the Grounds for Franchise Termination
The matter required careful review of the nature of the alleged breaches and the extent to which they affected continuation of the franchise relationship.
Establishing the Basis for Compensation
The compensation claim required analysis of the alleged breach, the resulting loss or damage, and the causal connection between the two.
Managing the Arbitration Proceedings
The dispute required a coherent legal position adapted to the procedural framework of arbitration, with consistency maintained between the facts, claims, defences, and supporting documents.
Protecting the Client’s Legal Position
Because the dispute concerned an operating commercial venture, it was necessary to consider the client’s contractual rights together with the potential consequences of continuing or terminating the relationship.
Our Legal Strategy
Reviewing All Governing Agreements
The legal work began with review of the commercial franchise agreement, the partnership arrangements, the mudarabah arrangements, and the supporting documents connected with the relationship.
Analysing the Alleged Breaches
The alleged breaches were assessed against the relevant contractual provisions to determine their legal effect on the relationship and the client’s rights.
Assessing Termination and Compensation
The legal basis for terminating the franchise agreement and seeking compensation for the alleged contractual breaches was analysed in light of the available facts and documentation.
Preparing the Legal Study
A comprehensive legal study was prepared and the necessary legal research conducted to support the client’s legal position. A comprehensive legal study was prepared addressing the agreements, the alleged breaches, the claims, and the client’s legal position.
Drafting Pleadings and Legal Memoranda
Pleadings, submissions, responses, and legal memoranda were prepared to support the client’s claims and legal arguments.
Representation Before the Arbitral Tribunal
The legal team represented the client in the arbitration proceedings and presented the client’s legal position and claims before the arbitral tribunal.
Legal Services Provided
Legal Advice
Providing advice concerning the franchise agreement, partnership and mudarabah relationship, and the legal options available to the client.
Comprehensive Legal Study
Preparing a legal assessment of the agreements, alleged breaches, claims, and the client’s legal position.
Advocacy
Handling the contentious aspects of the matter and presenting the client’s legal position within the arbitration proceedings.
Drafting Pleadings and Legal Memoranda
Preparing pleadings, submissions, responses, and legal memoranda connected with the dispute.
Legal Research
Conducting the legal research required to support the legal study, claims, defences, and arbitration submissions.
Representation Before the Arbitral Tribunal
Representing the client before the arbitral tribunal in the dispute concerning the franchise agreement and the alleged contractual breaches.
Legal Insight
Where partnership, mudarabah, and commercial franchise arrangements operate within the same project, the contractual relationship should be reviewed as a whole because a breach under one agreement may affect rights and obligations arising under another.A request to terminate a commercial franchise agreement should be based on clearly identified breaches, the relevant contractual provisions, and the effect of those breaches on continuation of the relationship.Where compensation is sought, the alleged breach, the resulting loss or damage, and the causal connection between them are central elements of the legal claim.
Legal Value Delivered to the Client
- Reviewed the partnership, mudarabah, and commercial franchise agreements.
- Identified and analysed the alleged contractual breaches.
- Assessed the legal basis for termination of the franchise agreement.
- Reviewed the basis for the compensation claim.
- Prepared pleadings, legal memoranda, and supporting legal research.
- Represented the client before the arbitral tribunal.
The Firm’s Experience in Commercial Franchise Disputes and Arbitration
Atyar Advocates and Legal Consultants provides legal services in commercial franchise disputes, partnership matters, and investment relationships, including review of agreements, assessment of contractual breaches, and analysis of termination and compensation issues.
The firm’s services include preparation of legal studies and research, drafting pleadings and legal memoranda, and developing legal positions in commercial and investment disputes.
The firm also represents clients before arbitral tribunals in disputes arising from commercial agreements, franchise arrangements, and investment relationships.
Legal Team Responsible for This Matter
Prof. Dr. Turki Al-Tayyar
Founder and Managing Partner, and an expert in the judiciary, legal practice, arbitration, and university education, with more than 25 years of combined experience.
Mr. Salem Saad Al-Dosari
Partner specialising in administrative contracts, investment, and litigation, with extensive experience in administrative and commercial cases.
Practice Areas Related to This Matter
- Real Estate Dispute Resolution
- Property Ownership Claims
- Litigation Before the General Courts
- Investment Disputes
- Government Contracts and Administrative Matters
- Compensation Claims
Need Legal Representation in a Commercial Franchise Dispute or Arbitration?
If you are a party to a franchise agreement, partnership, or mudarabah arrangement and are facing contractual breaches or a dispute requiring arbitration, Atyar Advocates and Legal Consultants provides legal advice, comprehensive legal studies, drafting, legal research, and legal representation throughout Saudi Arabia.
جاهز لحماية حقوقك أو تطوير أعمالك؟
تواصل معنا اليوم واحصل على استشارة قانونية موثوقة
سواء كنت فردًا تبحث عن تمثيل قانوني موثوق أو شركة تحتاج إلى دعم قانوني متخصص، نحن في شركة أطيار للمحاماة والاستشارات القانونية جاهزون لمساعدتك. دعنا نكون شريكك القانوني في كل خطوة، بخبرة تتجاوز 23 عامًا في الأنظمة السعودية.
بيانات الاتصال
- شارع التخصصي، النخيل، الرياض 12384
- 3132 شارع الأمير تركي، الكورنيش، 6309, الخبر
- Info@al-tayyar.com.sa
- 00966555398969
مجالات الممارسة
القانون التجاري والشركات
صياغة العقود والوثائق القانونية
القانون المالي والمصرفي
الضرائب والزكاة والجمارك
العقارات والملكية الخاصة
© 2025 All Right Reserved Al Tayyar Leagal company