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September 5, 2011

International Franchising – Thailand Chapter

Juris Publishing

Trademarks, tax, and termination are the terms in a franchise agreement most likely to cause trouble for a franchisor in Asia. In Thailand, many of the world’s most successful franchise models have established themselves to cater to the sophisticated Thai consumer. Well-known examples include Zara and Gap (for clothing and accessories); KFC, Pizza Hut, and Krispy Kreme (food); Ikea (home accessories); and 7-Eleven and Family Mart (convenience stores).

Other successful franchise models in the Kingdom abound in sectors such as education, real estate services, automobile leasing, and hair salons and training academies. The success of these businesses lies not only with strength of brand and quality of product and service, but equally with the foresight of understanding that localization of a master franchise agreement is critically important.

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