Franchise is the provision of an individual or organization to sell goods or services in the reality and method of business which has been tested in practice by the franchisor at one point, in a specific area. a certain period of time to receive a certain fee or percentage from sales or profits.
Firstly, about the conditions for the franchisor:
For the purpose of assisting enterprises in developing trademarks, the law only stipulates conditions for franchisors as follows:
Traders are allowed to grant commercial rights when the business system intended to be used for franchising has been in operation for at least 1 year.
1, Franchiseer’s rights
– Receive franchise money;
– Advertising organization for franchise system and franchise network;
– Regular or irregular inspection of the franchisee’s activities to ensure the consistency of the franchise system and the stability of the quality of goods and services.
2, Obligations of franchise traders
– Provide documentation of the franchise system for franchisees;
– Initial training and provision of regular technical assistance to franchisees to operate their operations in accordance with the franchise system;
– Designing and arranging places for sale and service provision at the expense of the franchisee;
– Assuring intellectual property rights over the subjects stated in franchise contracts;
– Equal treatment of franchisees in the franchise system.
Second, on the rights and obligations of franchisees
– Rights of franchisees
– Request the franchisor to provide adequate technical assistance related to the franchise system;
– Request franchisors to treat other franchisees equally in the franchise system.
– Franchise to a third party (called a franchisee) if approved by the franchisor
– Obligations of franchisees
– Pay franchise and other payments under the franchise contract;
Invest in sufficient facilities, financial resources and human resources to receive business rights and know-how transferred by franchisors;
– Accept the franchisee’s control, supervision and guidance; comply with the franchise traders’ requirements for designing, arranging sale places, providing services;
– To keep secrets about the franchise business secrets, even after the franchise contract has ended or been terminated;
– Stop using trademarks, trade names, business slogans, business symbols and other intellectual property rights (if any) or franchisor’s systems upon termination or termination of franchise contracts. Commerce;
– Operate in accordance with the franchise system;
– Franchise is not allowed without the franchisor’s consent.
Above are some issues related to “law on franchise in Viet Nam“, if you need advice, contact us at the hotline: 0984624444 or email “firstname.lastname@example.org” “.