Pursuant to Article 16 of Decree No. 35/2006/ND-CP, the concerned parties are entitled to unilaterally terminate the franchising contract under certain circumstances as follows:
1. The franchisee has the right to unilaterally terminate the franchising contract in cases where the franchisor breaches its obligations specified in Article 287 of the Commercial Law 2005.
2. The franchisor has the right to unilaterally terminate the franchising contract in the following cases:
a) The franchisee no longer holds the business license or papers of equivalent value, which the franchisee is required by law to hold for conducting business activities by mode of franchising.
b) The franchisee is dissolved or goes bankrupt according to the provisions of Vietnamese law.
c) The franchisee commits serious law violations, which may greatly harm the reputation of the franchising system.
d) The franchisee fails to remedy its immaterial breaches in the franchising contract within a reasonable time limit, though it has received a written notice from the franchisor requesting the remedying of such breaches.
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