Franchise registration procedures: Detailed instructions

Franchise registration procedures is a process that ensures the franchising process takes place legally. Implementing registration not only protects legal rights but also helps improve transparency in transactions. The article below will provide detailed instructions on the steps to carry out franchise registration procedures, helping businesses comply with the correct process.

What is a franchise? Is it mandatory to register a franchise?

Franchising is a commercial activity whereby the franchisor allows and requires the franchisee to personally purchase and sell goods and provide services under the following conditions:

1. The purchase and sale of goods and provision of services are conducted according to the business organization method prescribed by the franchisor and are associated with the franchisor’s trademark, trade name, business secrets, business slogan, business symbol, and advertisement;
2. The franchisor has the right to control and assist the franchisee in running the business.

According to the provisions of Clause 1, Article 291 of the Law on Commercial 2005, before franchising, the party intending to franchise must register with the Ministry of Trade.

Thus, franchise registration is mandatory.

Application for registration of commercial franchise

Application for registration at the Ministry of Industry and Trade

The application for registration of a commercial franchise at the Ministry of Industry and Trade includes basic documents as prescribed in Article 19, Decree 35/2006/ND-CP guided and amended by Clause 2, Section II, Circular 09/2006/TT-BTM.

Necessary documents include:

• Application for registration of commercial franchising activities according to form MD-1 in Appendix II issued with this Circular;
• Introduction to commercial franchising according to the form in Appendix III issued with this Circular;
• Certified copy of Business Registration Certificate or Investment Certificate in case of commercial franchising from Vietnam to foreign countries; Copy of Business Registration Certificate or equivalent document of foreign trader certified by the competent authority where the foreign trader is established in case of commercial franchise from abroad to Vietnam;
• A certified copy of the industrial property rights protection certificate in Vietnam or abroad in case of transfer of rights to use industrial property objects that have been granted protection certificates;
• Documents proving the original franchisor’s approval to sub-franchise in case the trader registers franchising activities as a secondary franchisor.

Application for registration at the Department of Industry and Trade

For commercial franchising activities within the province, registration documents at the Department of Industry and Trade according to the provisions of Clause 3, Section 2, Circular 06/2006/TT-BTM include:

• Application for registration of commercial franchising activities according to form MD-2 in Appendix II issued with this Circular;
• Introduction to commercial franchising according to the form in Appendix III issued with this Circular;
• Notarized copy of Business Registration Certificate or Investment Certificate;
• Notarized copy of industrial property rights protection certificate in Vietnam or abroad in case of transfer of rights to use industrial property objects that have been granted protection certificates
• Documents proving the original franchisor’s approval to sub-franchise in case the trader registers franchising activities as a secondary franchisor.

Procedures for registering a franchise

According to the provisions of Article 20, Decree 35/2006/ND-CP is guided and amended by Section 2, Circular 09/2006/TT-BTM. The procedure for registering a franchise includes the following steps:

Step 1: Submit registration documents to the Ministry of Industry and Trade or Department of Industry and Trade depending on the scope of activities.

Application form:

• Submit directly;
• Submit online;
• Submit via postal service.

Step 2: Receive documents

• When receiving applications for registration of commercial franchising activities, the registration agency must record a receipt.
• For incomplete and invalid dossiers, within a maximum of 02 working days from the date of receipt of the dossier, the registration agency must notify in writing the trader submitting the dossier to request supplementation and completion. edit profile.
• Traders registering for commercial franchising activities have the right to request the registration agency to clearly explain the additional requirements and complete the dossier. The registration agency is responsible for responding to that request from the trader.

Step 3: Register the franchise activity in the Franchise Activity Register

• Within 05 working days from the date of receipt of complete and valid documents, the registration agency is responsible for registering the trader’s franchise activities in the Franchise Activity Register;
• In case of refusal to register commercial franchising activities, within 05 working days from the date of receipt of complete and valid documents, the registration agency must notify in writing clearly stating the reason for refusal;

Step 4: Collect the franchise registration fee

When receiving a trader’s application for registration of commercial franchising activities, the registration agency collects the franchising activity registration fee according to the guidance of the Ministry of Finance.

Franchise registration consulting service at Long Phan

Long Phan provides franchise registration consulting services in Vietnam, assisting customers in drafting documents and carrying out registration procedures. With experience and expertise, Long Phan will help customers complete registration procedures quickly and accurately.

Services provided by Long Phan include:

• Consulting on conditions for registering a franchise;
• Consulting and support in preparing commercial franchise registration documents;
• Instructions on the order and procedures for registering commercial franchises;
• Representing customers to carry out franchise procedures;
• Consulting and answering related issues during the franchise registration process;
• In addition, we also advise and support other issues such as: negotiating, drafting franchise contracts, consulting on risks,…

To ensure the franchise fully complies with regulations and protects rights, customers need to follow the correct registration procedures. Long Phan specializes in providing franchise registration consulting services, supporting customers to quickly complete documents. If you have any need, please contact us immediately via the hotline: 0906735386 for the most detailed and dedicated advice.