May 3, 2011

Essentials for a Successful Franchise Agreement in Thailand

Intellectual Property 2010, Digital Guide, Executive View Media Limited

The franchise business model is widespread in Thailand, especially in the wake of the recent recession. This level of popularity can be attributed to the fact that franchising allows the franchisor to promote a successful business model or product to another geographical area, while many of the risks are borne by the franchisee. At the same time, franchising is attractive to franchisees because it authorizes the franchisee to use this successful business model or product while deriving greater benefits from the business than a company-owned outlet. The strategy of developing a franchise agreement is well appreciated by Thai entrepreneurs, as can be demonstrated by the proliferation of franchises such as 7-Eleven, Black Canyon, McDonald’s, and Zara, and this year’s arrival of Gap Inc and Century 21. This article examines the key aspects of successful franchise agreements in the Thai legal context.

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