Procedures for change of registered information on commercial franchising in Vietnam

Hello, Lawnet would like to answer as follows:

1. What information does the introduction of commercial franchising include under the law in Vietnam?

According to the provisions in Part A, Appendix III, Circular 09/2006/TT-BTM, the commercial franchise introduction includes the following information:

- General information about franchisor

+ Trade name of franchisor

+. Address of head office

+ Phone…Fax…

+ Establishment date

+ Information about the franchisor as first franchisor or secondary franchisor;

+ Forms of business;

+ Areas intended for franchising;

+ Information about registration for commercial franchising with competent agencies

- Brand names/services and intellectual property rights

+ Right to enjoyment of brand names/services and any object of intellectual property;

+ Details of brand names/services and rights to intellectual property objects registered under the Laws of Vietnam;

Some notes about the introduction of commercial franchising are as follows:

Introduction of commercial franchising shall include some information necessary for expected franchisee to make careful study before signing a franchise agreement. Expected franchisee should pay attention to the following issues:

- Unless the two parties have other agreement, the expected franchisee shall have at least 15 days to study this document and other relevant information before signing a franchise agreement.

- Carry out careful study of the Law on Commerce, Decree 35/2006/ND-CP and Circular 09/2006/TT-BTM; have discussion with other franchisees; conduct self-assessment of financial resource and capacity for satisfying requirements set in this business mode.

- Expected franchisee should hire a consultant independent of management, accounting and business before signing a franchise agreement.

- Expected franchisee should participate in training courses, especially when he or she has no experience in business.

2. What are the procedures for change of registered information on commercial franchising in Vietnam?

According to the provisions of Section III of Circular 09/2006/TT-BTM, the procedure for changing commercial franchising registration information is as follows:

- Where there is a change in the registered information in Part A of the written introduction of commercial franchise in Appendix III to Circular 09/2006/TT-BTM (not printed herein), or the information in Clause 3, Article 19 of Decree 35/2006/ND-CP, within 30 days after the change occurs, traders shall issue a notice on the change to the registration agency of the locality where they registered commercial franchising, made according to a set form, and enclose relevant documents on such change.

Clause 3 of Article 19 of Decree 35/2006/ND-CP stipulates as follows:

“...

3. 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.

...”

- Registration agencies shall add documents to traders' dossiers of registration of commercial franchising.

Form for change of registered information on commercial franchising (Form TB-5): Download

Therefore, in the event of changes in information such as trade name, main office address, franchising field, and trademark of goods/services, the franchisor is required to notify the registration authority where they have registered their commercial franchise activities of these changes within 30 days from the date of the change. Along with the notification, relevant documents regarding these changes should also be submitted.

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Key word: commercial franchising | in Vietnam | Vietnam | change of registered information on commercial franchising | introduction of commercial franchising |

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