09 acts of law violation in franchising in Vietnam

08:56, 07/04/2006

On March 31, 2006, the Government of Vietnam issued the Decree No. 35/2006/NĐ-CP detailing implementation of Commercial Law 2005 regarding franchising.

hành vi vi phạm pháp luật trong hoạt động nhượng quyền thương mại, Nghị định 35/2006/NĐ-CP

Specifically, according to Article 24 of the Decree No. 35/2006/NĐ-CP of Vietnam’s Government, 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:

1. Conducting franchising business without having fully satisfied the specified conditions;

2. Granting franchisings for goods or services banned from business;

3. Breaching the obligation to supply information in franchising specified in this Decree;

4. Including in written introductions of franchising untruthful information;

5. Violating regulations on registration of franchising;

6. Violating regulations on notification in franchising;

7. Failing to pay tax(es) according to the provisions of law, but not seriously enough for penal liability examination;

8. Failing to abide by requests of competent state agencies conducting examinations or inspections;

9. Violating other provisions of this Decree.

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.

View more details at the Decree No. 35/2006/NĐ-CP of Vietnam’s Government, effective from April 26, 2006.

Ty Na

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