Is Franchise regulated in Thailand?
There are currently no specific law or code of ethics governing franchising in Thailand. Therefore, the actions of franchises are regulated by other sources of law, such as the Civil and Commercial Code, the Trade Secrets Act, the Foreign Business Act and the Trade Competition Act. A draft Franchise Business Act exists – however it has been pending for many years without much indication of further consideration.
What is the registration process to have the franchise registered?
There are no regulations surrounding franchising in Thailand, and neither are there are any registration requirement for franchises in Thailand.
We do, however, recommend that franchisees register their relevant trademarks at the IP Office in Thailand before venturing into any franchise arrangements with third parties.
What are the criteria for a company to be allowed to franchise in the country?
There are no restrictions on any foreign company or local company to franchise their business in Thailand. As there are no regulations, there are no specific criteria that Franchisors need to meet as well.
What tips can we provide to Franchisors or Franchisees?
As there is no overriding franchise law in Thailand, it is important to draft your franchise agreement carefully. It is worth having an agreement vetted by a local lawyer to ensure protection for both parties.
In the Civil and Commercial Code (Section 14), it is stated that “Whenever a document is executed in two versions, one in the Thai language, the other in another language, and there are discrepancies between the two versions, and it cannot be ascertained which version was intended to govern, the document executed in the Thai language shall govern.”
We therefore advise that all documents are translated into the Thai language by a professional translator.
Examples of popular Thai franchises:
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