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​ 

December 18, 2021
Partner Loc Xuan Le shared his thoughts on Vietnam’s accession to the WIPO Copyright Treaty (WCT), a special agreement under the Berne Convention, with a reporter from Asia IP magazine in a recent article: “In my opinion, Vietnam’s Law on Intellectual Property has already covered and satisfied WCT’s requirements, so the accession to WCT is just us acting on our commitment when we joined the EU – Vietnam Free Trade Agreement and the Comprehensive and Progressive Agreement and Progressive Agreement for Trans-Pacific Partnership. By joining WCT, Vietnam ensures that we shall provide IP rights protection at international standards, which I believe is crucial in developing Vietnam as an attractive business destination for foreign investors.” Loc further added, “On the other hand, Vietnam has a strong and growing community of artists who generate content on the Internet daily, so the official accession of Vietnam to WCT shall provide solid legal grounds to protect Vietnamese creators in the digital era. This, in return, shall act as an incentive to promote the creative sector.” Asia IP, published by the Apex Asia Media Group, is a leading source for analysis of the IP issues facing companies in Asia, and a source of market intelligence for IP owners in the region. The full article can be read at the Asia IP website.
Read More
December 3, 2021
Asia Business Law Journal (ABLJ) has published a story on Tilleke & Gibbins’ recent addition of Derrick Khoo to the Tilleke & Gibbins regional corporate and M&A team. As the article notes, Derrick came to Tilleke & Gibbins after several years as a general counsel handling a wide variety of international corporate legal matters. He is particularly experienced in cross-border transactions and M&A deals, growth equity investments, pre-IPO investments, corporate real estate, and other corporate and commercial legal matters. In the article, his arrival at Tilleke & Gibbins is welcomed by Kobkit Thienpreecha, partner and director of the firm’s corporate and commercial group, who explains that Derrick is joining the firm at the same time that Thailand has been taking steps to support regional financial integration and cross-border investment opportunities. With the addition of Derrick’s expertise in these areas, Tilleke & Gibbins is broadening its capability to facilitate a greater variety and volume of these activities, in keeping with an anticipated uptick in associated transactions. For more details on this development, please see the ABLJ website.
Read More
December 3, 2021
On December 2, Michelle Ray-Jones and Ploynapa Julagasigorn hosted a Licensing Executives Society (LES) Thailand webinar titled “IP Valuation and IP Implications of Thailand’s New Trade Competition Act.” In the first part of the webinar, Michelle introduced the webinar and emphasized the importance of IP valuation as the digital economy flourishes. Ploynapa then joined two other speakers to provide insights on the latest trends in IP valuation, highlight trademark valuation matters, and share their knowledge and experience with IP valuation, from both financial and legal perspectives. The webinar gave LES members a better understanding of the actual value of their IP assets and their brands, and facilitated greater connections among Thailand’s IP commercialization community.
Read More
November 26, 2021
On November 25, Wiramrudee (Pink) Mokkhavesa, a partner in Tilleke & Gibbins’ intellectual property group in Bangkok, joined a panel in an ASEAN IPA webinar titled “Online Enforcement of Intellectual Property Rights.” Together the panelists discussed the impact of internet-based technologies and possible strategies for tackling infringement in the ASEAN region. Wiramrudee, who represented Thailand, was joined on the panel by speakers from Singapore and Vietnam. The webinar provided an overview of the online counterfeit trade and how it affects all types of businesses, from multinationals to SMEs, and discussed the most relevant current and future online counterfeiting threats. Panelists then exchanged views on approaches to dealing with these emerging online infringement risks to ensure that attendees are prepared to face the latest counterfeiting and infringement trends. The session concluded with a Q&A session and a closing statement by the moderator.
Read More