Transferring foreign trademarks in Vietnam

by Anh Việt

In the minds of many people, a brand is something used to distinguish the products of different businesses. But according to the Intellectual Property Law, the most accurate concept is “trademark”. A product or service of good quality and trusted by customers will have a certain place in the customer’s mind and the brand of the business will be a solid tool to perform that task. So about the matter “Transferring foreign trademarks in Vietnam” Let’s find out with LSX in the article below.

Legal grounds

  • Law on Intellectual Property 2005, amended and supplemented in 2019

Types of trademark transfer

Transfer of trademark rights has 3 main forms:

Franchise by territory:

• Franchising from abroad into Vietnam: A form in which brand owners are foreign brands investing in Vietnam. For example: Pizza Hut, Burger King,..

• Franchising from Vietnam to abroad: A form in which Vietnamese brands invest abroad by franchising. For example: Trung Nguyen, Pho 24,…

• Domestic Franchise: Vietnamese Brands Franchise Traders in Vietnam

Franchising according to business criteria:

• Product distribution franchising: The franchisor allows the franchisee to distribute the franchisor’s products and services within a certain scope and time.

• Franchising using the business formula: The franchisor not only allows the franchisee to distribute their products and services, but also transfers the operating methods, business techniques and support requirements. requirements, basic skills.

Franchising according to the development goals of business activities:

• Exclusive franchising: The franchisor selects and appoints certain partners in the country. The franchisee has the right to open more stores or resell the franchise to any individual or company within the area under their control.

• Regional Franchise: The franchisor will receive the franchise from the brand owner or from the master franchise buyer to resell to small franchises in the area with conditions attached to the franchisor.

• Area Development Franchise: The franchisor will have exclusive rights to the brand within a specific scope and term. But do not have the right to resell the franchise to anyone

• Individual Franchise: The franchisor will work and check with each franchisee

Transferring foreign trademarks in Vietnam


The first question is whether your business is suitable for franchising. “In addition to having sales and profits at the existing business, there are many other factors to consider,” said Mark Siebert, general manager of iFranchise Group, a national franchise consulting firm.


Most good franchise models will offer something familiar, but hide some uniqueness. A prime example is Florida’s Pizza Fusion which offers a familiar product – pizza – but with organic ingredients, delivered by electric car.

This model must appeal to both consumers and prospective franchisees. It should create the expectation that more units will generate economies of scale and increase profits. In addition, the model can certainly be systematized and replicated, not based on your personal feelings for success.

“Ask yourself, will your model sell?” he says. “Can you copy it? Does it provide good returns?”


Most successful franchises have a potential business opportunity and try to replicate them in other locations.

Cleveland-based franchising consultant Joel Libava says he likes to see companies with at least a few units whose profits go beyond the first business that was in operation before the company attempted a franchise.


Don’t rely on your gut to guess that your business will be a huge hit across the country.

Gather market research to confirm that consumer demand is growing and suitable for the franchise business you will be offering, and determine where in the market if there is one or more competitors new.


Being a franchisor means you will be engaged in completely different activities than you would as a business owner. You will mainly sell the brand and support the agency to get it up and running.

Additionally, franchising your business will require you to give up some of the control you already have over how the model implementation works.

IFA President, Matthew Shay said: “The franchisees/agents won’t do it your way, even if they do well. “If you’re too attached to your model and you won’t let anyone else touch it, then franchising may not be right for you.”


Before you dive into franchising, you may want to consider other options, says Siebert. Depending on your situation where growth is slower, finding debt financing or joining a partnership are all alternatives that may prove better ways to move forward.

It can also cost $100,000 or more, so ask yourself if your company has the financial resources. Remember that while franchising allows you to grow fast, it also means giving up most of the future profits of the franchisors, says Shay.


In order to legally sell franchises anywhere, your business must complete and successfully register with the relevant authorities.

You will be asked to provide a range of information about your business, including audited financial statements, an operating handbook for franchisees, and a description of the team’s business experience. manage.

To advise and help with this process, Libava consultants suggest hiring a consultant with franchise experience or a franchise attorney. Find a professional who can make sure you’re doing all the necessary steps correctly.


As you prepare the legal paperwork, you need to make many decisions about how you will operate as a franchisor. Key points include:

• Franchise fees and royalty rates

• The duration of your franchise agreement

• The size you will give each franchisee

• The geographic area you want to offer franchising

• The type and duration of the training you will provide

• Do franchisees have to buy products or equipment from your company?

• The business experience and net worth the franchisee/agent needs

• How you will promote the agency.


Once you’ve made the key decisions that shape how your brand will work, you’re ready to go through the proper paperwork.

When you submit it, prepare the authorities with the necessary documents and possibly additional explanations before they accept your application.


As you prepare to become a franchisor, you will often need some extra staff who will focus solely on helping the dealers.

In the case of Solar Universe, the company sells its dealers the solar panels they use, so the Bono founder says he needs to hire a full-time ordering staff. The company has also hired a coach and a full-time franchise consultant to answer dealer questions and resolve any issues.


Now that you are in business as a franchisor, one of your urgent activities will be to find resellers and convince them to buy your business model.

Lillians is quite unusual as the company sells all of its brands by word of mouth and has no sales representatives. To help stimulate interest, the company offers a $1,000 referral fee to anyone who sends the company a new franchisee/reseller.

At Solar Universe, Bono said it hired two in-house salespeople to market the franchise. The company has also partnered with national franchise-consulting chains FranNet, whose consultants can present their prospects.

Other common sales techniques include attending a franchise fair or hiring independent marketing firms to help find investors.

Selling a franchise is difficult due to the high risk to the franchisee/agent, says Siebert. Your salespeople should know your business well and be able to tell a compelling story about why you are worth the investment of time and money.

Siebert puts it this way: “You’re saying, ‘I want you to give me all your money. Then quit your job, give up the benefits you have, go into a business you’ve never been in. And follow my rules.’ Then you’ll need to establish a fairly high level of trust.”


To be a franchisor, you will go through a lot to get there. Your training programs and other support efforts will create quality control, ensuring that the brand provides a consistent experience no matter what location a customer visits.

With the Internet, it has increasingly made sense to provide continuous online learning modules for agents to use.

If you are a restaurant operator and employ 20 people in a unit,” he notes, “you have thousands of new employees going through the system every year. Without constant training, it’s easy for misbehavior to happen. “

At the same time, you’ll need to start marketing your growing chain to drive agency sales. Many new franchisors underestimate the marketing effort and think this support will be costly. Marketing includes everything from radio or print advertising to corporate vehicle uniforms, logos, advertisements and logo art.

Services of LSX

Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.

On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.

Cost: Besides, LSX’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.

Confidentiality of client information: Finally, all brand information of client LSX will be 100% confidential.

Please contact us immediately if you have any questions about “Transferring foreign trademarks in Vietnam”

Contact LSX

Finally, hopefully the information in the article will provide helpful information for readers and help you solve the problem “Transferring foreign trademarks in Vietnam” At the same time, LSX Law firm always has leading lawyers and legal consultants who will help you in legal matters of life. If you have any need, please get in touch with us via hotline: +84846175333 or Email:

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Frequently asked questions

Some trademark transfer restrictions?

• The right to use the ending trademark may not be transferred to an organization or individual that is not a member of the owner of that collective mark;
• The licensee may not enter into a secondary contract with a third party, unless otherwise permitted by the licensor;
• The licensee of the right to use the mark is obliged to write instructions on the goods and goods packages about the fact that such goods are produced under the contract to use the mark.

Contents of the trademark transfer contract?

The parties can freely agree on the terms of the trademark assignment contract, but must ensure that the following contents are shown:
• Full name and address of the assignor and assignee;
• Grounds for transfer;
• Transfer price;
• Rights and obligations of the assignor and assignee.

Conditions for franchising trademarks?

According to the provisions of Articles 5 and 6 of Decree No. 35/2006/ND-CP, in order to operate a franchise, the following conditions must be met:
First, about the franchisor:
• The business system intended to be franchised must have been in operation for at least 1 year.
• If the Vietnamese trader is the primary franchisee from a foreign franchisor, the primary franchisee must do business by franchising method for at least 01 year in Vietnam before re-granting the franchise. .
• Registered for franchising activities
• Business goods and services subject to commercial rights do not violate the provisions of law
Second, about the franchisee:
• Must be a merchant
• Having business registration in line with the subject of commercial rights.

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