Is it permissible for the company that owns the franchise to receive an annual amount of 100,0 Riyals or 10% of the profit (whichever is higher), even if that leads to collecting the amount in case of a loss?

The right of امتياز (exclusive agency) is permissible if it is a contract between a principal and someone to whom he grants the exclusive right to sell and distribute his products in a specific geographic area in exchange for a defined commission. There is no objection to the company requesting compensation for this right. However, it is stipulated that the price or remuneration must not be unknown or uncertain. Also, if the transaction is a partnership, it is not permissible for the partner's share to be a fixed sum or a guaranteed percentage.