AN ANALYSIS OF FRANCHISING IN VIETNAM FROM THE STANDPOINT OF CORPORATE LAW.

Franchising is a commercial enterprise where the franchisor grants and mandates the franchisee to independently engage in the buying and selling of products and delivery of services, in compliance with appropriate regulatory regulations.

Vietnamese traders or foreign traders considering franchising must officially register their franchising activities with the appropriate authority in compliance with the existing legislative requirements.

 

Therefore, in actuality, franchising is a distinct commercial strategy, and the regulations governing this process also exhibit several variations. And then, when drafting a franchise contract, the management of potential risks that arise should be taken seriously and carefully considered to achieve maximum opportunity costs for the participating parties: risks of violating legal regulations on taxes due to not paying or not paying enough related taxes, business risks related to illegal multi-level sales activities, risks of contract subjects not complying with current legal regulations, risks of names not being in accordance with the legal system, risks of contract forms and regulations on franchise registration according to the law, risks of laws governing contracts not being effective for all parties, risks of contract language, etc.

 

Consulting legal basis: Legal regulations governing commercial matters in 2005; Decree 35/2006/ND-CP; Decree 120/2011/ND-CP; Decree 08/2018/ND-CP; Enterprise Law 2020; Consolidated Document No. 11/VBHN-VPQH Law of Intellectual Property 2022

 

In case that you require guidance or assistance in creating and modifying contracts of any nature, Pls kindly reach out to us for comprehensive and precise instructions. Esteemed regards.

 

 

 

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Dong Du International Accounting, Taxes & Legal Consulting Group HCMC Vietnam, A member of Asia Lawzana Network, Southeast Asia Business Consulting Network

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