Tiếng Việt
中文 (中国)
QUESTION:
Franchise in Vietnam: Can we accept a deposit from our potential buyers which will be credited towards to master franchise fee?
Dear Pham,
Hope you are doing well. Happy New Year to you.
A client of mine who is in the franchise consulting business has a client he is assisting that is interested in expanding into Vietnam. I am uncertain of the city, but I know you being in Hanoi makes servicing this client anywhere in Vietnam not an issue. They have franchise disclosure documents and Franchise Agreements that will need local counsel to review. Can you help?
Please find attached a draft copy of the Franchise Disclosure Document (FDD) we used in China. Hopefully this could serve as a template. I will need to update it a little since this was created a few years ago. I have also attached a draft version of our master franchise agreement.
Can we accept a deposit from our potential buyers which will be credited towards to master franchise fee?
Best Regards,
ASL LAW’S ADVICE
Dear G,
Thanks for your following letter. Regarding your inquiry, we would like to advise as follows:
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Can we accept a deposit from our potential buyers which will be credited towards to master franchise fee?
Our advice: It could be dependent on each bank, they have their own policy in transferring the money. In our opinion, after the franchise agreement is signed between the franchisor and franchisee, the franchisee could transfer money to the franchisor based on the contract. Normally, every franchisor requires franchisee to deposit after signing the contract. It is to protect the right of franchisor. We see the article in franchises agreements in our previous clients and they never raise such question. We are not sure what is the real problem to EFK here. Could you ask EFK further clarify it, so that we could advise the same.
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Also in your experience how long does the whole process take to register the FDD?
It shall take 25-40 days in a straight forward case.
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When do you think we would be able to sign a master franchise agreement with our franchise prospects?
it depends on a lot of factors to decide this. We need more information to advise you about this.
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What about the translation? I’ve been told that the everything must also be translated.
Yes, you right. All documents shall be required to translate into Vietnamese. If you could provide all the required documents, you could fix the translation for you. Otherwise, our translated fee as provided in our previous letter is $$$ words.
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Can you also handle the trademark registration for us? What are the fees involved?
Yes, we do trademark registration in Vietnam, our fee as follows:
| Description | Official Fees
(USD) |
Attorney’s fee
(USD) |
| 1. Fee for filing one application for the first class within 6 items * | ||
| – Fee for filing one application for the second class within 6 items (if any) | ||
| – For each additional good/service from the 7thgoods/services in each class (if any) | ||
| 2. Fee for 01 granting certificate for the first class * | ||
| – Fee for 01 granting certificate for the second class (if any) | ||
| 3. Fee for priority claims of one trademark application (if any) | ||
| Total (sum of with *)
In words: |
||
Note: The above-quoted fees exclude 5% VAT of our service charge, bank charges and actual communication costs. In case of any office action or possible opposition which may occur during the application proceedings, an additional charge may be incurred, upon your approval.
You could find full advice on trademark in Vietnam here.
- What is our fees of recording franchise in Vietnam?
Our fees are as follows:
– Reviewing the franchise agreement: $US
– Recording the franchise agreement at Vietnam authority: $US, official fee is included.
*Note: This fee excludes 10% VAT and translation fee of required documents to Vietnamese.
If you agree, please send us the official instruction and the final agreement to review.
We do hope that the above-mentioned advice will be useful for you. Should you have any enquiry, please do not hesitate to contact us.
Best regards,
ASL LAW – Vietnam Business Law Firm.
