Tilleke & Gibbins has contributed the Thailand chapter to Franchise 2025 from the International Comparative Legal Guides (ICLG) series published by Global Legal Group. This comprehensive guide provides detailed analysis of franchise laws and regulations across multiple jurisdictions worldwide. Each chapter of the guide follows a Q&A format, organized into key sections covering critical aspects of franchise law and operations, including: Relevant legislation and rules governing franchise transactions Business organization options for franchised operations Competition law considerations Protection of intellectual property and brands Liability issues and risk mitigation Governing law and dispute resolution Real estate matters Online trading regulations Termination requirements Joint employer risks and vicarious liability Currency controls and taxation Commercial agency considerations Good faith obligations and fair dealing requirements Ongoing relationship management Franchise renewal processes Franchise migration procedures Electronic signatures and document retention The Thailand chapter, authored by Alan Adcock and Kasama Sriwatanakul, examines these topics in detail, with particular attention to recent developments like the Trade Competition Commission’s Franchising Guidelines which introduced new disclosure requirements and protections for franchisees. The complete Thailand chapter is available as a PDF below. The Thailand chapter—and the full Franchise 2025 guide—are also freely available on the ICLG website.

Thailand’s Electronic Transactions Development Agency (ETDA) issued guidelines for managing advertisements on digital platform services (DPSs) earlier this year. These guidelines aim to prevent fraud, illegal product or service offerings, and inducements to commit illegal acts, and are likely to provide a basis for greater regulation of this issue in the future. Key obligations for DPS business operators under the guidelines are detailed below. Advertiser Screening and Data Collection Verification and collection: Business operators must establish processes for verifying and collecting advertiser data. This includes steps, methods, and required information for advertiser registration. Identity verification: Business operators should follow identity verification requirements for advertiser registration. This may include using identity verification results from other identity providers or conducting their own identity verification processes with a minimum identity assurance level (IAL) of IAL2. Data storage: Advertiser data must be stored in a machine-readable format. Business operators must maintain records for watchlists, blacklists, and whitelists. Prepublication Advertisement Review Review process: Business operators should review advertisements before publication. This review should consider factors such as prohibited or restricted advertisements, required permissions, and avoiding sensitive user data. Postpublication Monitoring Advertisement monitoring: Business operators must monitor published advertisements using automated systems, staff, or contracted personnel. Criteria for prioritizing reviews should be established. Reporting channels: Business operators must provide channels for users to report illegal or inappropriate advertisements. Reports must be promptly addressed, prioritizing cases involving intellectual property owners or multiple credible reports. Advertiser account monitoring: Business operators must monitor advertiser accounts. This includes considering factors such as the number of reports/flags received and compliance with service agreements and community standards. For more information on this initiative from the ETDA, or on any aspect related to Thailand’s regulations for DPSs, please contact Athistha (Nop) Chitranukroh at [email protected], Thammapas Chanpanich at [email protected], Pornpan Wichawut at [email protected],

The Indonesian food and drug authority, also known as “BPOM,” issued a draft regulation on September 9, 2024, proposing standard labeling disclosing the sugar, salt, and fat content of packaged food products sold in the country. The draft Regulation on Nutritional Value Information on Food Labels to implement Government Regulation No. 28 of 2024 on the Implementation of the Health Law seeks to mandate “Nutri-Level” front-of-pack nutrition labeling to indicate the amount of sugar, salt, and fat at four possible levels, with a modified stoplight-color system: Level “A” (lowest amount) has a dark green background Level “B” has a light green background Level “C” has a yellow background Level “D” (highest amount) has a red background These levels are shown in the following sample image: The requirements for sugar, salt, and fat content for each level are based on amounts per 100 milliliters of ready-to-eat processed food as follows: Further requirements relating to nutrients reflected in the Nutri-Level labeling include: Foods labeled as level A are not allowed to contain natural or artificial sweetening food additives, either through direct addition or carried over from other ingredients. Foods labeled as level B may only contain natural sweetening food additives. Foods labeled as level C or D may use natural and artificial sweetening food additives. “Sugar” includes all monosaccharides and disaccharides, excluding lactose. Processed plain liquid milk and plain milk powder are exempt from the requirement to declare total fat content on the Nutri-Level label. Labeling Implementation The implementation of Nutri-Level labeling must comply with the following requirements: The Nutri-Level label must list all four letters (as shown in the examples below) unless the package meets the criteria for display of a simplified format label. The Nutri-Level of the processed food must be indicated by enlarging the relevant letter, as shown

Indonesia enacted a new franchise regulation, Government Regulation No. 35 of 2024 on Franchising (“GR 35/2024”), on September 2, 2024. Franchising in Indonesia was previously governed by Government Regulation No. 42 of 2007 on Franchising (“GR 42/2007”), along with an implementing regulation, Ministry of Trade Regulation No. 71 of 2019 regarding Implementation of Franchising (“MOT Regulation 71/2019”). This new regulation repeals GR 42/2007. However, MOT Regulation No. 71/2019 remains in effect until a new MOT regulation can be enacted. The new franchise regulation contains several amendments and provides more detailed requirements to complement MOT Regulation No. 71/2019. Comparison of GR 35/2024 to GR 42/2007 Minimum years of business operation. The new regulation reduces the minimum duration that a franchise registration applicant must have been operating from five years to three years. Intellectual property (IP) status. Any relevant IP must now be registered before a franchise registration application can be submitted. This is a change from the previous regulations, under which it was possible to obtain a franchise registration (STPW) while an IP application was still pending, and if the IP application could not be registered, the STPW would be canceled. Registration requirements for foreign franchisors. Under the new regulation, foreign franchisors must provide a legalized or apostilled business permit document from the country of origin in addition to the previously required franchise offering prospectus and statement letter from the relevant Indonesian authority. Administrative sanctions. The new regulation has adjusted the three escalating stages of administrative sanctions to (1) two warning letters, (2) a 14-day suspension from business activities, and (3) STPW revocation. This varies from the three stages under the previous regulation (three warning letters, fine, and STPW revocation). The new regulation also expands the list of noncompliant actions that are subject to these administrative sanctions. In addition to