Vietnam: 05 reasons that the direct franchisor may reject the transfer of commercial rights of the franchisee

11:21, 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.

ý do từ chối bên nhượng quyền trực tiếp được từ chối việc chuyển giao quyền TM, Nghị định 35/2006/NĐ-CP

Specifically, according to Clause 3 Article 15 of the Decree No. 35/2006/NĐ-CP of Vietnam’s Government, the direct franchisor may reject the transfer of commercial rights of the franchisee for one of the following reasons:

- The intended transferee fails to fulfill its financial obligations under the franchising contract;

- The intended transferee has not yet satisfied the criteria for being selected by the direct franchisor;

- The transfer of commercial rights may exert a great adverse impact on the existing franchising system;

- The intended transferee disagrees in writing to fulfill the obligations of the franchisee under the franchising contract;

- The franchisee has not yet fulfilled the obligations toward the direct franchisor, except here the intended transferee makes a written commitment to fulfill such obligations on the franchisee's behalf.

Besides, the franchisee may transfer commercial rights to another intended franchisee when the following conditions are satisfied:

- The intended transferee satisfies the conditions of having the registration of business lines subject to commercial rights;

- Such transfer is consented by the franchisor that has granted commercial rights to the transferring franchisee (hereinafter referred to as the direct franchisor).

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

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

68 lượt xem

- The legal regulations in this article are according to Vietnamese Law;
- This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts;
- Articles may be compiled from a variety of sources;
- Applicable Terms may have expired at the time you are reading;
- If you have any questions about the copyright of the article, please contact us via email banquyen@lawnet.vn