You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

September 13, 2013

Asia IP Explores the Growth of Franchising in ASEAN

Subscribe to Updates
Asia IP

In the latest edition of Asia IP, lawyers from across ASEAN explain why franchising has become such a popular way of doing business in the region. Lawyers from Tilleke & Gibbins were among some of the contributors, including Alan Adcock, partner and deputy director of intellectual property in Bangkok; Thomas J. Treutler, partner and managing director in Vietnam; and Thom Thi Mai Nguyen, attorney-at-law in Hanoi.

Commenting on the growth of franchising in Thailand, Alan is quoted as saying the country’s franchise businesses grew by 20% in 2012, in part due to the fact that “Thailand currently has no franchise-specific legislation.” Similarly, he notes, “As there are no specific franchising regulations in Cambodia currently, the time is now for foreign franchisors to enter the market,” and indeed, the country is seeing a gradual increase in franchise operations. He warns, however, that “Intellectual property rights infringement is an area of particular risk, and thus, franchisors should protect themselves with clear and robust language in the franchising agreement.” In addition, he says, they should contain anticompetition clauses that run beyond the lifetime of the franchise agreement, because “an ex-franchisee could take the knowledge and experience he gained from running the franchise operation and open a competitive business or franchise.”

The article goes on to discuss franchising in Vietnam, quoting Thomas as saying, “Franchising is not very common in Vietnam, but it is becoming more familiar. Most franchises in Vietnam are for foreign brands, and a majority of such foreign brands are in the food and beverage and fashion sectors.” To those thinking about setting up a franchise in Vietnam, Thom provides some cautionary advice, saying “Many different regulations may affect the terms and conditions of a franchise agreement; for example, a foreign franchisor normally wishes to put a purchase option in the franchise agreement which gives the foreign franchisor a priority right to acquire the franchised system in Vietnam.” She continues to say, “However, this may not be feasible due to the foreign ownership restrictions in the retail sector.” This may result in the foreign franchisor’s registration being rejected by the licensing authorities, and they will not be allowed to have full ownership of the developed franchised system.

Download Full Article
RELATED PROFESSIONALS

Practices

Corporate/M&A

Intellectual Property

Locations

RELATED INSIGHTS​ 

February 25, 2022
On February 24, Tilleke & Gibbins, in collaboration with the Thai Business Association of Myanmar and the Thai Business Association of the Lao PDR, delivered a Thai-language webinar titled “How to Export Cosmetics to Cambodia, Laos, and Myanmar, and Parallel Importation and Case Studies in Thailand.” The 90-minute session was led by a number of Tilleke & Gibbins’ regulatory affairs (RA) specialists: Atthachai Homhuan, director of the firm’s regulatory affairs (RA) group in Bangkok; Dino Santaniello, head of the Laos office; Ratchanee Sriplaek, RA consultant in Thailand; Saithong Rattana, associate in the Laos office; Thanathon Trakoolpolpruek, RA consultant in Thailand; and Yuwadee Thean-ngarm, director of the firm’s Myanmar office. Together, the speakers addressed the following issues: Compliance with cosmetics laws and regulations in Cambodia, Laos, and Myanmar; Regulatory requirements for product labels and advertisements; Best practices and success stories related to exporting beauty products; Avoiding double importation; and Relevant case studies from Thailand. A recording of the webinar (in Thai) is available on the Tilleke & Gibbins YouTube channel.
Read More
February 22, 2022
Tilleke & Gibbins partners in the firm’s Bangkok and Hanoi offices were quoted in Lex Mundi’s newly released Global M&A Trends Report 2022. The report covers notable trends, issues, and forecasts for mergers and acquisitions (M&A) around the world. Kobkit Thienpreecha, partner and director of Tilleke & Gibbins’ corporate and commercial department, was sought out for his comments on the M&A picture in Thailand, while Thomas Treutler, partner and managing director of the firm’s Vietnam offices, gave his insights into the M&A landscape in Vietnam. The Global M&A Trends Report 2022 was produced by the Lex Mundi Cross-Border Transactions Group, and it analyzes M&A deal activity by sector and market. Overall, the report, which compiles market intelligence from practitioners in 66 jurisdictions, finds that 2021 was a record year for M&A deal activity and that most jurisdictions expect to see a similarly active environment in 2022. The full report is available on the Lex Mundi website.
Read More
January 24, 2022
On January 21, 2022, Tilleke & Gibbins hosted a Chinese-language webinar aimed at helping clients in mainland China understand the fundamentals of Thailand’s trademark registration process. Sher Hann Chua, a consultant of the firm’s intellectual property department, led the webinar, which was titled “Trademark Registration and Prosecution in Thailand: Issues and Challenges.” During the session Sher Hann discussed the following topics: Overview of Thailand’s trademark registration procedure; Recent developments in Thailand’s trademark prosecution framework; and Common trademark registration pitfalls for Chinese companies in Thailand and how to overcome them. A video recording of the webinar (in Chinese) is available on the Tilleke & Gibbins YouTube channel.
Read More
January 10, 2022
Dr. Vinh Quoc Nguyen, a partner with the corporate and commercial team in Tilleke & Gibbins’ Ho Chi Minh City office, has been elected to serve a one-year term as chair of the Vietnam Business Lawyers Club (VBLC), a leading professional organization affiliated with the Vietnam Bar Federation. VBLC was established in 2015 with the mission of developing a collaborative group of Vietnamese lawyers engaged in cross-border commercial practice. In addition to providing a forum for practitioners to share experience and offer mutual support, VBLC regularly conducts classes and seminars, and advises lawmakers on policy issues. A well-known figure in Vietnam legal circles, Dr. Vinh is also a lecturer at the Judicial Academy and an arbitrator with the Vietnam International Arbitration Centre (VIAC). In November 2021, he was honored by Vietnam’s Ministry of Justice for his contributions to the development of the country’s legal practice.
Read More