Commercial Franchise Lawyer in Vietnam
Commercial franchising is an activity adjusted by
Commercial law, whereby franchisors permit and require franchisees to undertake
by themselves to purchase or sell goods or provide services on the following
conditions: i) the purchase or sale of goods or provision of services shall be
conducted in accordance with methods of business organization prescribed by
franchisors and associated with the franchisors’ trademarks, trade names,
business knows-how, business slogans, business logos and advertisements; ii)
franchisors shall be entitled to supervise and assist franchisees in conducting
their business activities.
Commercial franchise contracts must be made in writing or
in other forms of equivalent legal validity and registered with Ministry of
Industry and Trade excepting some regulated cases which are not required to
register but report to Department of Industry and Trade which are domestic
franchises and the franchises from Vietnam to overseas.
Firstly, the franchisors, except having otherwise agreed,
have the rights i) to receive franchise sums; ii) to organize advertising for
the commercial franchise system and the commercial franchise network; iii) to
conduct periodical or extraordinary inspections of activities of franchisees in
order to ensure the uniformity of the commercial franchise system and the
stability of quality of goods and services.
In the meantime, the franchisors have the obligations i)
to supply documents guiding the commercial franchise system to franchisees; ii)
to provide initial training and regular technical assistance to franchisees for
managing the latter’s activities in accordance with the commercial franchise
system; iii) to design and arrange places of sale of goods or provision of
services at the expenses of franchisees; iv) to guarantee the intellectual
property rights over objects stated in franchise contracts; v) to equally treat
all franchisees in the commercial franchise system.
For the franchisees, except having otherwise agreed, the
franchisees could i) request franchisors to provide with full technical
assistance related to the commercial franchise system; ii) request
franchisors to equally treat all franchisees in the commercial franchise system.
The franchisees have the obligations to i) pay franchise
sums and other amounts under commercial franchise contracts; ii) to invest
adequate material facilities, financial sources and human resources to take
over business rights and know-how transferred by franchisors; iii) to submit to
the control, supervision and instruction by franchisors; to comply with all
requirements set forth by franchisors on designing and arrangement of places of
sale of goods or provision of services; iv) to keep secret the franchised
business know-how even after the expiration or termination of commercial
franchise contracts; v) to stop using trademarks, trade names, business
slogans, logos and other intellectual property rights (if
any) or systems of franchisors upon the expiration or termination of commercial
franchise contracts; vi) to manage their activities in accordance with the
commercial franchise system; vii) not to sub-franchise without permissions of
franchisors.
Besides the above rights and obligations, the parties may
supplement others provisions demed necessary but not contrary to the provisions
of law.
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local expertise and strong international network. We focus on customers’ needs
and provide clients with a high quality legal advice and services. For advice
or services request, please contact us via email ant@antlawyers.vn, or call us
+84 24 730 86 529.
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