{"id":10714,"date":"2025-01-06T11:32:48","date_gmt":"2025-01-06T04:32:48","guid":{"rendered":"https:\/\/cdlaf.vn\/?p=10714"},"modified":"2025-01-06T12:21:44","modified_gmt":"2025-01-06T05:21:44","slug":"all-legal-aspects-of-franchising-in-vietnam","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/all-legal-aspects-of-franchising-in-vietnam\/","title":{"rendered":"All legal aspects of franchising in Vietnam"},"content":{"rendered":"<p>Franchise is a business model that has been growing strongly in Vietnam, becoming an attractive trend not only for domestic investors but also for foreign businesses.\u00a0However, in order to participate in this field effectively and safely, understanding the relevant legal regulations is a prerequisite.\u00a0Vietnam&#8217;s legal system has issued specific regulations to regulate franchising activities, protect the interests of both franchisors and franchisees, and promote the sustainable development of the market.\u00a0<\/p>\n<p>This article will provide comprehensive legal information about franchising in Vietnam, helping individuals and businesses understand the process, rights, obligations and risks to be aware of when participating in this potential business model.<\/p>\n<figure id=\"attachment_10689\" aria-describedby=\"caption-attachment-10689\" style=\"width: 600px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10689 size-medium\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-walls-io-440716388-15635395-1-600x400.jpg\" alt=\"\" width=\"600\" height=\"400\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-walls-io-440716388-15635395-1-600x400.jpg 600w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-walls-io-440716388-15635395-1-1200x800.jpg 1200w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-walls-io-440716388-15635395-1-768x512.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-walls-io-440716388-15635395-1-1536x1024.jpg 1536w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2024\/12\/pexels-walls-io-440716388-15635395-1-2048x1365.jpg 2048w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><figcaption id=\"caption-attachment-10689\" class=\"wp-caption-text\">Source: pexels-walls-io-440716388-15635395<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/all-legal-aspects-of-franchising-in-vietnam\/#1_What_is_franchising\" >1. What is franchising?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/all-legal-aspects-of-franchising-in-vietnam\/#2_Regulations_on_franchising_in_Vietnam\" >2. Regulations on franchising in Vietnam<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/all-legal-aspects-of-franchising-in-vietnam\/#3_Basic_Structure_of_Franchise\" >3. Basic Structure of Franchise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cdlaf.vn\/en\/all-legal-aspects-of-franchising-in-vietnam\/#4_Why_it_is_necessary_to_comply_with_the_law_when_franchising_in_Vietnam\" >4. Why it is necessary to comply with the law when franchising in Vietnam<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/cdlaf.vn\/en\/all-legal-aspects-of-franchising-in-vietnam\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_What_is_franchising\"><\/span>1. What is franchising?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A franchising is a business model in which one party owns a brand or business model (franchisor) that allows another person or organization (franchisee) to use the brand, products, business processes, and other related elements to do business under agreed terms.\u00a0This is a popular form of trade cooperation, especially in industries such as food, retail, and services.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2_Regulations_on_franchising_in_Vietnam\"><\/span>2. Regulations on franchising in Vietnam<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to\u00a0<strong>Article 284 of the Commercial Law 2005<\/strong>, franchising is defined as a commercial activity in which:<\/p>\n<ul>\n<li>The franchisor permits and requests the franchisee to purchase and sell goods or provide services by itself in the manner prescribed by the franchisor.<\/li>\n<li>This business is associated with factors such as branding, trade names, business secrets, slogans, business symbols, or franchisor advertising.<\/li>\n<li>The franchisor has the right to control and assist the franchisee in running the business.<\/li>\n<\/ul>\n<p>At the same time, the franchised business system must operate for at least one year before being allowed to franchise, according to the provisions of Article 5 of the Commercial Law and relevant decrees<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Basic_Structure_of_Franchise\"><\/span>3. Basic Structure of Franchise<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The basic structure of franchising is a harmonious combination of three elements:\u00a0<strong>the franchisor<\/strong>, the\u00a0<strong>franchisee<\/strong>, and the\u00a0<strong>franchise contract<\/strong>, each of which plays an irreplaceable role in this model.<\/p>\n<p><strong>The franchisor\u00a0<\/strong>plays a key role in building the foundation for the franchise system.\u00a0They are not only the owners of the brand, but also act as the developer, protector, and transmitter of the brand&#8217;s core values.\u00a0A strong brand, combined with standardized business processes, is the most important asset the franchisor provides to the partner.\u00a0In addition, they also take on the responsibility of training, technical support, and supervision to ensure consistency throughout the entire system, from product to service.\u00a0This not only helps maintain brand reputation but also strengthens competitiveness in the market.<\/p>\n<p><strong>The franchisor\u00a0<\/strong>is the executor of the values and models that the franchisor builds.\u00a0They are empowered to use their brand, operational processes, and related elements to grow their business.\u00a0However, the franchisee is not merely a copyist, but must strictly comply with the standards set by the franchisor.\u00a0The relationship between the two parties forms a circle of affiliation, where the success of a franchise store is not only an individual success, but also contributes to the collective strength of the entire system.<\/p>\n<p><strong>A franchise <\/strong><strong>contract<\/strong>\u00a0is an important legal tool that helps establish and maintain the relationship between the franchisor and the franchisee.\u00a0It clearly stipulates the rights, responsibilities and obligations of both parties, from the scope of brand use rights, business model, to operating standards and franchise fees.\u00a0This is the basis for ensuring transparency and fairness in the cooperative relationship, and helping to resolve potential disputes effectively.\u00a0The role of the contract is to connect the interests between the two parties, while maintaining the necessary control of the franchisor to protect the core value of the system.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"4_Why_it_is_necessary_to_comply_with_the_law_when_franchising_in_Vietnam\"><\/span>4. Why it is necessary to comply with the law when franchising in Vietnam<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Legal compliance in franchising in Vietnam is a mandatory requirement to ensure legal, transparent, and efficient business operations.\u00a0This helps protect the interests of both franchisors and franchisees, minimizing legal risks, especially related to contracts and intellectual property.\u00a0At the same time, strictly complying with tax regulations and franchise registration not only creates trust for partners and customers but also builds brand reputation and promotes sustainable development.\u00a0Compliance with the law helps businesses limit financial losses, handle disputes effectively and create conditions for the stable development of the franchise system in Vietnam.<\/p>\n<p>If you do not comply with the law in franchising in Vietnam, you may face many serious consequences, including administrative sanctions, suspension of business activities, or declaration of invalidity of the franchise contract.\u00a0In addition, issues related to intellectual property disputes, lack of protection of brand assets, and violations of tax obligations can cause large financial losses and adversely affect brand reputation.\u00a0Non-compliance also reduces trust from partners and customers, hindering the long-term development of the franchise system in Vietnam.<\/p>\n<p><strong><em>Time of writing:<\/em><\/strong> 18\/12\/2024<\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer \u00a0at\u00a0 <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/summary-of-the-latest-legal-regulations-for-news-websites\/\">Summary of the latest legal regulations for News websites<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/tax-administration-for-e-commerce-new-regulations-and-important-remarks\/\">Tax administration for e-commerce, new regulations and important remarks<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/business-activities-of-the-acquired-company-what-foreign-investors-need-to-know\/\">Business activities of the acquired company, what foreign investors need to know<\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/10714#wpcf7-f2681-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2681\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2681-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<h2 class=\"tt-form\"><span class=\"ez-toc-section\" id=\"SEND_CONSULTATION_REQUEST\"><\/span>SEND CONSULTATION REQUEST\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><label>Full name<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"full-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"full-name\" \/><\/span><br \/>\n<label>Email<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<label>Phone Number<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-text wpcf7-validates-as-tel\" aria-invalid=\"false\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<label>Message<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"coment\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" name=\"coment\"><\/textarea><\/span><br \/>\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner btn-yellow\" type=\"submit\" value=\"Send\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Franchise is a business model that has been growing strongly in Vietnam, becoming an attractive trend not only for domestic investors but also for foreign businesses.\u00a0However, in order to participate in this field effectively and safely, understanding the relevant legal regulations is a prerequisite.\u00a0Vietnam&#8217;s legal system has issued specific regulations to regulate franchising activities, protect&#8230;<\/p>\n","protected":false},"author":4,"featured_media":10689,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[],"class_list":["post-10714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/10714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=10714"}],"version-history":[{"count":2,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/10714\/revisions"}],"predecessor-version":[{"id":10716,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/10714\/revisions\/10716"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/10689"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=10714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=10714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=10714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}