Franchise is a commercial activity, accordingly, the franchisor allows and requests the franchisee to undertake by itself the business of supplying goods or providing services.
1. Legal foundation
+ Pursuant to the Commercial Law 2005;
+ Pursant to the Government's Decree 35/2006/ND- CP of March 31st, 2006 detailing the provisions of the Commercial Law on commercial franchising;
+ According to the Ministry of Trade ’s Circular No. 09/2006/TT-BTM guiding the commercial franchising registration. Besides, if franchising has connection with transfering the use right of intellectual propertysubject matters, technology transfering it will be adjusted and supplemented by the Law on Intellectual Property 2005, the Law on Technology Transfer 2006.
2. The state management of franchising
+ According to the Clause 1 Article 18 Decree No.35 the Ministry of Trade registers the franchising activities 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.
3. Dossiers of application for registration of commercial franchising shall comprise:
+ An application for registration of franchising, made according to the form guided by the Ministry of Trade ( MD-1 form)
+ A written introduction of franchising, made according to the form set by the Ministry of Trade (attached form in Appendix III)
+ A notarized copy of Certificate of Business Registration or papers of equivalent value which is confirmed by athourised body where his /her company is established in case of franchising from overseas into Vietnam (This document must be translated into Vietnamese and notarized by domestic notaries public and Vietnam's foreign-based diplomatic missions and consularly legalized according to the provisions of Vietnamese law
+ A notarized copy of industrial property right protection title in Vietnam or a foreign country in case of licensing industrial property subject matters for which protection titles have been granted.
+ Papers proving the approval of the primary franchisor's permission of franchise in case the trader registering franchising is the secondary franchisor;
Note: Where papers specified in Point d and e are written by foreign languages, they must be translated into Vietnamese and notarized by domestic notary public's office.
4. The time for registration of commercial franchising.
+ 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.
+ When 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 trader for supplementation and completion of its dossier;
+ For supplemented and completed dossier: within 5 working days after receiving complete and valid dossier, it will be handled accordingly.
5. Consultant Fee/Charge
Consultant Fee/Charge will be calculated and based on the difficulties of issues as well as the real activities. It will depend on the specific work and will be informed after the client’s demands are clear
If you have any question, please do not hesitate to contact with us:
MINH GIA LAW FIRM