What are the procedures for registering franchising in Vietnam? When is a trader's franchise registration revoked?
- What are the procedures for registering franchising in Vietnam?
- When is a trader's franchise registration revoked?
- What are the regulations on the franchisor's responsibility to supply information?
- What are the acts of law violation in franchising in Vietnam?
- What are the contents of the franchising contract?
What are the procedures for registering franchising in Vietnam?
Pursuant to the provisions of Article 20 of Decree No. 35/2006/ND-CP stipulating the procedures for registering franchising in Vietnam as follows:
An intended commercial franchisor shall register franchising according to the following procedures:
- Sending a dossier of application for registration of franchising to the competent state agency defined in Article 18 of Decree No. 35/2006/ND-CP;
- 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.
- 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;
- 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;
- 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.
What are the procedures for registering franchising in Vietnam? When is a trader's franchise registration revoked?
When is a trader's franchise registration revoked?
Pursuant to the provisions of Article 22 of Decree No. 35/2006/ND-CP, a trader's franchising registration shall be revoked in the following cases:
- The trader terminates its business operation or shifts to another business line;
- The trader has its business registration certificate or investment certificate withdrawn.
The agency that has effected the franchising registration shall publicly announce such registration revocation.
What are the regulations on the franchisor's responsibility to supply information?
Pursuant to Article 8 of Decree No. 35/2006/ND-CP stipulating the franchisor's responsibility to supply information as follows:
- The franchisor shall have to supply copies of the franchising contract form and the written introduction of its franchising to the intended franchisee at least 15 working days before signing the franchising contract, unless otherwise agreed by the parties.
Compulsory contents of the written introduction of franchising shall be specified and promulgated by the Ministry of Trade.
- The franchisor shall have to promptly notify all franchisees of all important changes in the franchising system, which may affect the latter's business activities by mode of franchising.
- Where the franchised commercial right is a common one, the secondary franchisor shall, apart from supplying information according to the provisions of Clause 1 of this Article, have to notify in writing the intended franchisee of the following contents:
+ Information on the franchisor that has granted commercial rights to it;
+ Contents of the common franchising contract;
+ Method of handling secondary franchising contracts in case of termination of the common franchising contract.
What are the acts of law violation in franchising in Vietnam?
Pursuant to Article 24 of Decree No. 35/2006/ND-CP stipulating acts of law violation in franchising in Vietnam as follows:
Traders involved in franchising that commit the following acts of violation shall, depending on the nature and seriousness of their violations, be administratively sanctioned according to the provisions of law on handling of administrative violations:
- Conducting franchising business without having fully satisfied the specified conditions;
- Granting franchisings for goods or services banned from business;
- Breaching the obligation to supply information in franchising specified in Decree No. 35/2006/ND-CP;
- Including in written introductions of franchising untruthful information;
- Violating regulations on registration of franchising;
- Violating regulations on notification in franchising;
- Failing to pay tax(es) according to the provisions of law, but not seriously enough for penal liability examination;
- Failing to abide by requests of competent state agencies conducting examinations or inspections;
- Violating other provisions of Decree No. 35/2006/ND-CP.
Where traders conducting business by mode of franchising commit acts of violation, causing material damage to involved organizations and/or individuals, they must pay compensations therefore according to the provisions of law.
What are the contents of the franchising contract?
Pursuant to the provisions of Article 11 of Decree No. 35/2006/ND-CP stipulating the contents that must be included in the franchising contract include:
Where the parties choose to apply Vietnamese law, a franchising contract may have the following principal contents:
- Content of franchised commercial right.
- Rights and obligations of the franchisor.
- Rights and obligations of the franchisee.
- Price, periodical franchise fee and mode of payment.
- Valid term of the contract.
- Renewal and termination of the contract, and settlement of disputes.
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