Today, LSX Lawfirm will give you an article about: “Registration of commercial franchises in Vietnam”, as follows:
Legal grounds
Law on commercial 2005
What means of commercial franchises in Vietnam
Commercial franchise means a commercial activity whereby franchisors permit; and require franchisees to undertake by themselves to purchase or sell goods or provide services on the following conditions:
Firstly, 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.
Secondly, franchisors shall be entitled to supervise and assist franchisees in conducting their business activities.
Registration of commercial franchises in Vietnam
1. Before granting commercial franchises, intended franchisors must register them with the Trade Ministry.
2. So, the Government shall specify the conditions for conducting business under commercial franchise and the order and procedures for registering commercial franchises.
Related article: Commercial franchise that foreigners should know in Vietnam
Procedures for franchising from abroad to Vietnam
Decentralization of responsibility to register franchising
- The Ministry of Trade shall register the following franchising activities:
a) Franchisings from overseas into Vietnam, including franchisings from export processing zones, non-tariff areas or separate customs areas specified by Vietnamese law into the Vietnamese territory;
b) Franchisings from Vietnam to overseas, including franchisings from the Vietnamese territory into export processing zones, non-tariff areas or separate customs areas specified by Vietnamese law.
- Secondly, Trade Services and Trade-Tourism Services of provinces or centrally-run cities where traders that intend to franchise make business registration shall register franchising at home, except for franchising across boundaries of export processing zones, non-tariff areas or separate customs areas specified by Vietnamese law.
It also related to Registration of commercial franchises in Vietnam.
Dossiers of application for registration of franchising
A dossier of application for registration of franchising comprises:
- An application for registration of franchising, made according to the form guided by the Ministry of Trade.
- Then, a written introduction of franchising, made according to the form set by the Ministry of Trade.
- Written certifications of:
a) The legal status of the intended franchisor;
b) Industrial property right protection titles in Vietnam or a foreign country in case of licensing industrial property subject matters for which protection titles have been granted.
- Where papers specified in Clauses 2 and 3 of this Article are written in foreign languages, they must be translated into Vietnamese and notarized by domestic notaries public or Vietnam’s foreign-based diplomatic missions and consularly legalized according to the provisions of Vietnamese law.
It related to Registration of commercial franchises in Vietnam.
Procedures for registering franchising
- An intended commercial franchisor shall register franchising according to the following procedures:
a) Sending a dossier of application for registration of franchising to the competent state agency defined in Article 18 of this Decree;
b) Then, within 5 working days after receiving complete and valid dossier; the competent state agency shall register franchising in the franchising register and notify in writing the traders of such registration.
c) So, where the dossier is incomplete or invalid; the competent state agency shall; within 2 working days after receiving such dossier; notify such in writing to the intended franchisor for supplementation and completion of its dossier;
d) Then, the time limits specified in this Clause shall not include the time for the intended franchisor to amend and supplement its dossier of application for registration of franchising;
e) Past the time limits specified in this Clause; if the competent state agency refuses to effect the registration, it must notify such in writing to the intended franchisor; clearly stating the reasons for refusal.
- Procedures for registering contracts on licensing of industrial property subject matters shall comply with the provisions of law on industrial property.
Related questions
Sub-franchise to a third party is how?
So, a franchisee entitled to sub-franchise to a third party (referred to as sub-franchisee) if franchisor consented it.
Sub-franchisees shall have the rights and obligations of franchisees; provided for in Articles 288 and 289 of Vietnam Commercial Law 2005.
Registration of commercial franchises
Before granting commercial franchises, intended franchisors must register them with the Trade Ministry. Then, the Government shall specify the conditions for conducting business under commercial franchise; and the order; and procedures for registering commercial franchises.
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