The franchise is a commercial activity that the franchisors allow and require the franchisees to carry out the purchase and sale of goods, provide services under certain conditions. The franchise is also related to the transfer of technology, trademarks of goods, or the other subject matters of intellectual property rights. Therefore, the form of operation will be regulated by the franchisor and is attached to trademarks of goods, trade names, trade secrets, trade slogans, trade symbols, the advertisement of the franchisor. At the same time, the franchisors also have the right to control and support the franchisees in the management of the business.
From that, it can be seen that the relationship between the franchisor and franchisee is complementary. On the side of franchisees, the first interest is that they don’t need to have a lot of capital to create a business form, they can exploit available strengths and prestige of that trademark directly. Therefore, enterprises can join the market, gain profit right after published. The most important interest of the franchise is that enterprises can learn many experiences, working models from big trademarks. Besides, interest brought to the franchisor is that the business model is widened, the consumption of products to motivate the market is enhanced. Therefore, it creates strung effects without a lot of capital.
The franchise, however, is a safe and effective investment form, it also has many potential risks if investors don’t understand legal, tax – accounting issues and drafting, negotiating contract skills. Because legal issues are the basic issues that need to be noticed, legal risks are huge risks in the franchise. Also, disputes on franchise contracts not only cause big damages to the property, time for enterprises but also affect the prestige of enterprises in the market significantly.
With many years of experience in consulting franchises for domestic and foreign clients and a team of lawyers having profound knowledge about the change in-laws as well as the business environment, we bring clients the most practical solutions in franchise activities. Besides, with experienced tax – accounting specialists in our team, we have help clients assess the ability to create profit, management as well as avoid risks on tax, account, relevant administrative procedures in the process of conducting franchise.
The contents of consulting on the franchise of Vietlaw Solutions Firm:
The initial assessment: To the relationship of franchise contributes to obtaining a target of developing the business operation of each party, contracts need to be established and performed based on cooperation, belief, and goodwill, honesty, and fairness.
Consulting, supporting in researching the market: We help enterprises research the market to assess the suitability between the ability of enterprises and franchise activities;
Consulting, supporting in collecting information: The information needs to be understood such as regulations on location, position, geographic space, franchise, granting licenses, checking, maintenance, repairing, property insurance, staff, the trademarks franchised, market, the pace of development, supporting policy for new markets…;
Consulting, participating in negotiation, signing franchise contracts: The enterprises have to anticipate all elements that can arise in the process of operation later to put into the contents of negotiation or avoiding the harmful contents of negotiation. The franchisees need to understand the commitments of the franchisors as well as their commitments and present them in the articles of contracts to operate under a common regulation, process.
Consulting, supporting in locations used for commercial rights: Parties need to choose the location carefully to avoid changes in location resulting in spending much on repairing and interior and exterior decoration according to the standard of the franchisors;
We believe that our clients get much profit from the profound knowledge of our senior lawyers in the field of the franchise. Depending on specific cases, we put out the most practical solutions for clients. If not clear, please don’t hesitate to contact us to be supported.
Address: 90B Tran Quoc Toan, Ward 8, District 3, Ho Chi Minh City, Vietnam.
Hotline: 0902 868 117 – 0909 868 117