Franchise is a commercial activity whereby the franchisor permits and requires the franchisee to conduct the purchase and sale of goods and provision of services by himself or herself under certain conditions. A franchise contract is a contract that instructs an enterprise to use a product or an operating process that is an industrial property object and is being protected. Franchising involves the transfer of technology, trademarks or other intellectual property objects.
franchise
A. Conditions for performing activities Franchise
Conditions for rights: Traders are allowed to grant commercial rights when the project business system is used for the right to operate for at least 01 year.
B. Decentralization of registration of commercial franchise activities
(specified in Article 18 of the Government’s Decree 35/2006/ND-CP dated March 31st, 2006 and Clauses 2 and 3, Article 3 of the Government’s Decree 120/2011/ND-CP dated December 16th, 2011):
b.1. The Ministry of Industry and Trade registers commercial franchising activities from foreign countries into Vietnam, including franchising activities from Export Processing Zones, Non-Tariff Zones or separate customs areas according to regulations of the Ministry of Industry and Trade. Vietnamese law into the Vietnamese territory.
b.2. The following cases are not required to register a franchise:
- Domestic franchising;
- Franchising from Vietnam to abroad.
For cases where franchise registration is not required, the prospective franchisee must report to the Department of Industry and Trade; The rights and responsibilities of related parties must still be complied with in accordance with current laws
C. IMPLEMENTATION REPORT MODE TO HCMC DEPARTMENT OF INDUSTRY AND TRADE:
c.1. For cases where franchise registration is not required (domestic franchising and commercial franchising from Vietnam to abroad), the reporting regime must be carried out to the Department of Industry and Trade (as specified in Clause 2, Article 3 of Decree No. 120/2011/ND-CP dated 16/12/2011 of the Government).
c.2. Traders shall periodically submit reports to the Ho Chi Minh City Department of Industry and Trade no later than January 15 of each year according to the attached form (specified in Part B, Appendix 3 of Circular 09/2006/TT-BTM). dated May 25th, 2006 of the Ministry of Trade).
D. Dossier of application for registration of commercial franchising
- An application for registration of commercial franchising, made according to form MD-1;
- A copy of the introduction of the franchise according to the form in Appendix III;
- Papers of equivalent validity of the foreign trader certified by the competent authority where the foreign trader is established in the case of commercial franchising from abroad to Vietnam (foreign language documents need to be legalized). consular legalization and notarized translation):
- A notarized copy of the industrial property protection title in Vietnam or abroad in case the right to use the industrial property object has been granted the protection title;
- Papers evidencing the consent of the original franchisor to permit re-franchising in case the trader registering franchising is a secondary franchisor;
E. Customer’s profile to provide
- A notarized copy of the business registration certificate or an equivalent document of the foreign trader certified by the competent authority where the foreign trader is established in the case of franchising from foreign countries. outside Vietnam;
- A notarized copy of the industrial property protection title in Vietnam or abroad in case there is a transfer of the right to use the industrial property objects that have been granted the protection title;
- Papers evidencing the consent of the original franchisor to permit re-franchising in case the trader registering franchising is a secondary franchisor;
- Audited financial statements for the last 01 year.
