In order to perform commercial franchise, concerned parties have to satisfy certain conditions prescribed by law.
The franchisors must satisfy the following conditions:
– The business system intended for franchise has been in operation for at least one year. Where a Vietnamese trader is the primary franchisee of a foreign franchisor, such Vietnamese trader must conduct business by mode of franchising for at least one year in Vietnam before sub-franchising.
– Such trader has registered franchising with the competent agency defined in Article 18 of this Decree.
– The in-business goods and/or services covered by commercial rights do not violate the provisions of Article 7 of this Decree.
The franchisees must have the registration of business lines subject to commercial rights.