Vietnam market is very potential for franchise activities to international brands. When doing franchise in Vietnam, franchisor and franchisee should know about legal requirements to franchise in Vietnam as follows.
HOW MANY FRANCHISE IN VIETNAM?
By the time from 2007 to August 2019, there are 213 franchises activities including franchise from foreign franchisors to Vietnam and franchise from Vietnamese franchisors to oversea.
WHAT ARE MAJOR FIELDS OF FRANCHISE IN VIETNAM?
The franchise in Vietnam includes the following sectors: restaurant, fashion, education, convenient stores, retails market with the famous names: McDonald’s, Baskin Robbins, Haagen-Dazs, Pizza Hut, Kentucky Fried Chicken, Pepper Lunch, Burger King, Lotteria, Caffe Bene, Tous Les Jours, BBQ Chicken, Swensen’s, Oasis, Karren Millen, Warehouse, Topshop, Coast London, Bulgari and Moschino, Rossi.
WHO IS ELIGIBLE FOR REGISTERING FRANCHISE IN VIETNAM?
According to Vietnam law on franchise, the franchise between the following shall need to register their franchise agreement at Vietnamese authority:
+ Franchise from foreign party to a Vietnamese party
+ Franchise from a Vietnamese party to a foreign party
If the franchise agreement between the aforementioned parties has not been registered at the relevant authority, the parties could be fined.
WHAT IS CONDITION FOR FRANCHISE AGREEMENT IN VIETNAM?
Under the law of Vietnam on franchise that franchisor must have been operating its business for a period of time, particularly at least 01 year.
In case of master franchise in Vietnam who could sub-franchise to other parties in Vietnam, they also need to operate at least one year prior to granting franchise rights to other parties.
WHAT ARE REQUIRED DOCUMENTS FOR REGISTERING FRANCHISE IN VIETNAM?
No. Name of documents
1. Franchise registration application (by ASL LAW)
2. Power of Attorney (By ASL LAW)
3. Franchise agreement
4. Audited Reports in the last year
5. – Brief Introduction of franchisor (By ASL LAW)
6. Business certificate (or equivalent documents) of the franchiser.
7. A copy of trademark certificate or copyright (if any).
8. Papers proving the approval of the primary franchisor’s permission of franchise in case the trader registering franchising is the secondary franchisor
HOW LONG DOES IT TAKE TO REGISTER FRANCHISE IN VIETNAM?
– Submitting the application to Ministry of Industry and Trade: 5-7 days from receiving full documents of franchise.
– Receiving the franchise registration certificate: 03-04 weeks (if all required documents are lawful).
WHAT SERVICES CAN A LAW FIRM PROVIDE IN TERMS OF FRANCHISE IN VIETNAM?
+ Drafting franchise agreement between parties
+ Reviewing franchise agreement between franchisor and franchisee
+ Advising on the major articles in a franchise agreement
+ Legal opinion on a potential franchise agreement
+ Advising all matters in franchise agreement
+ Settling the dispute between franchisor and franchisee during the franchise activities