Vietnam: The business system intended for franchise has been in operation for at least one year

According to the Decree No. 35/2006/NĐ-CP of Vietnam’s Government, conditions for the franchisor, franchisee and goods and services permitted for franchising business are specified as follows:

- A trader shall be permitted to grant commercial rights when fully satisfying the following conditions:

+ The business system intended for franchise has been in operation for at least one year. Where a Vietnamese trader is the primary franchisee of a foreign franchisor, such Vietnamese trader must conduct business by mode of franchising for at least one year in Vietnam before sub-franchising.

+ Such trader has registered franchising with the competent agency as prescribed.

+ The in-business goods and/or services covered by commercial rights do not violate the provisions of Article 7 of this Decree.

- A trader shall be permitted to receive commercial rights when having the registration of business lines subject to commercial rights.

- Goods and services permitted for franchising business are those not on the list of goods and services banned from business. Enterprises shall be permitted to deal in goods and/or services on the list of goods and services restricted from business or those on the list of goods and services subject to conditional business only after being granted business licenses or papers of equivalent value by the branch-managing agencies or fully satisfying business conditions.

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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