Arabica Star signs franchise deal to operate chain in Western Region

Logo  of Arabica Star Co.

Arabica Star Co. signed a five-year franchise agreement with Tihama Al-Hijaz Trading Co., as part of its expansion plans to operate the “Arabica Star” store chain in the Western Region, including Jeddah, Taif, and Makkah.

Under the deal, Star Arabia grants the franchise rights to operate the brand’s outlets in accordance with the company’s approved business model and operational identity.

The contract was signed on Dec. 3, the company said in a statement to Tadawul today, Dec. 7.

The actual value of the contract cannot be accurately determined at this time, as franchise fees and periodic fees are subject to the terms agreed upon between the parties, the statement added.

The agreement includes granting the franchise rights to operate 10 franchise units, with full compliance with franchise regulations, operational processes, training, and technical standards.

It also specifies the expected opening dates for the branches, with Taif-Jeddah units set to open on Jan. 1, 2026, and Taif-Makkah units on Jan. 1, 2027.

Arabica Star expects the financial impact of the agreement to appear in its results starting from the second quarter of 2026, coinciding with the commencement of operations at the new branches.

There are no related parties to this agreement, the statement said.