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Home Legal services Intellectual Property Franchise in Vietnam

What are the rights and obligations of the franchisees?

Rights and obligations of the franchisees are provided in Articles 288 and 289 of Commercial Law 2005. The franchisees have the following rights:
-    To request franchisors to provide full technical assistance related to the commercial franchise system;

-    To request franchisors to equally treat all franchisees in the commercial franchise system.

The franchisees have the following obligations

-    To pay franchise sums an other amounts under the franchising contracts;

-    To invest adequate material facilities, financial sources and human resources to take over business rights and know-how transferred by franchisors;

-    To submit to the control, supervision and instruction by franchisors, to comply with all requirements set forth by franchisors on designing and arrangement of places of sale of goods or provision of services;

-    To keep secret the franchised business know-how even after the expiration or termination of the franchising contracts;

-    To stop using trademarks, trade names, business slogans, logos and other intellectual property rights (if any) or systems of franchisors upon the expiration or termiantion of the franchising contracts;

-    To manage their activities in accordance with the commercial franchise system;

-    Not to sub-franchise without the permission of franchisors.
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