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Franchise agreements are prevalent in Nakhon Ratchasima, and the rest of Thailand, with brands from all over the world investing in the city's potential. Thai Law generally favors the franchisor, but there are legal protections for franchisees. Despite the lack of a comprehensive franchise specific law in Thailand, various other laws, including the Business Development Act 1999, Commercial Code, Trade Show Competition Act, Consumer Act, and Intellectual Property laws cover the salient facets of the franchising regime.
Engaging with a franchise operation, whether as a franchisor or franchisee, involves navigating complex business structures, contracts, and intellectual property rights. A specialist franchising lawyer can assist with drafting and reviewing franchise agreements, ensuring compliance to local regulations, dealing with any disputes and representing you for any litigation case. Franchisors also often require legal assistance when setting up their franchise structure, and expanding their business into Thailand.
The Business Development Act and the Commercial Code govern franchise agreements. Regulations require franchisors to provide appropriate information to potential franchisee before a contract is concluded and also contain provisions for termination and renewal of franchise agreements. Intellectual property rights, including use of trademarks and trade secrets, are protected under IP laws. Thailand is also a member of World Trade Organization (WTO) and hence obligated to adhere to the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement. Strict competition laws also apply to franchising with the view of preventing unfair trade practices.
Q1: Is there a specific legal process to set up a franchise in Nakhon Ratchasima?
No franchise-specific law exists; however, certain regulations necessitate disclosure of information to prospective franchisees before agreement finalization.
Q2: Can the franchise agreement be written in English or must it be Thai?
While the agreement may initially be made in English for understanding by foreign parties, it should also be translated into Thai which will be most relevant in court.
Q3: If a dispute arises, what legal avenues can be explored?
One could resort to litigation in the Thai courts, or arbitration if stated in the franchise agreement.
Q4: What Thai authorities oversee franchising?
The Department of Business Development (DBD) oversees franchising, with any violations possibly bringing about criminal penalties.
Q5: How can franchisors protect their trademarks?
Trademarks should be registered with the Department of Intellectual Property for adequate protection.
For more information, you can contact Thai bodies such as the Department of Business Development, The Department of Intellectual Property, or the Courts of Justice. International organizations, like the World Intellectual Property Organization (WIPO) and the World Franchise Council (WFC), also provide resources and guidance regarding franchising.
If you need legal assistance with franchising, consider contacting a law firm or attorney with specialisation and experience in franchising and Thai law. They can help guide you, safeguard your rights, and optimize your case, ensuring you journey through franchising in Nakhon Ratchasima with the least obstruction.
