Do traders have to satisfy certain conditions to carry out commercial franchise?
In order to perform commercial franchise, concerned parties have to satisfy certain conditions prescribed by law.
The franchisors must satisfy 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 defined in Article 18 of this Decree.
- The in-business goods and/or services covered by commercial rights do not violate the provisions of Article 7 of this Decree.
The franchisees must have the registration of business lines subject to commercial rights.
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Conditions of franchising
