APPENDIX 2: FRANCHISING INTRODUCTION
(Issued with Circular No. 09/2006/TT-BTM dated May 25, 2006 of the Ministry of Trade)
Part A
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I. General information about the franchisor
1. Trade name of the franchisor.
2. Address of the franchisor's head office.
3. Phone, fax (if any).
4. Date of establishment of the franchisor.
5. Information on whether the franchisor is a primary franchisor or a secondary franchisor.
6. Type of business of the franchisor.
7. Franchise field.
8. Information on franchise registration with the competent authority.
II. Trademarks/service marks and intellectual property rights
1. The right to use the trademark/service mark and any intellectual property of the licensee.
2. Details of trademarks/services and rights to intellectual property objects registered under the law.
Part B
I. Information about the franchisor
1. Organizational chart.
2. Names, duties and work experience of the franchisor's board of directors.
3. Information about the franchisor's franchise department.
4. Franchisor's experience in the franchising business
5. Information on litigation related to the franchisor's franchise activities within the last one (01) year.
II. Initial costs that the franchisee must pay
1. The type and amount of initial fees payable by the franchisee.
2. Time of payment.
3. In what cases is the fee refunded?
III. Other financial obligations of the franchisee
For each of the following fees, state the amount of the fee, when it is payable, and under what circumstances it is refundable:
1. Periodic fee.
2. Advertising fees.
3. Training fees.
4. Service fees.
5. Rent payment.
6. Other fees.
IV. Initial investment of the franchisee
Initial investment includes the following key information:
1. Business location.
2. Equipment.
3. Decoration costs.
4. Original goods must be purchased.
5. Security costs.
6. Other prepaid expenses.
V. The franchisee's obligation to purchase or lease equipment to comply with the business system specified by the franchisor
1. Is the franchisee required to purchase or lease certain equipment or services to comply with the franchisor's established business system?
2. Is it possible to modify the rules of the franchise business system?
3. If it is permissible to modify the franchise business system, specify what procedures are required.
VI. Obligations of the franchisor
1. Obligations of the franchisor before signing the contract.
2. Obligations of the franchisor during the entire operation.
3. Obligations of the franchisor in deciding on the choice of business premises.
4. Training:
a. Initial training.
b. Other additional training courses.
VII. Description of the market for goods/services traded under the franchise method
1. A description of the general market for the goods/services that are the subject of the franchise agreement.
2. Description of the market for the goods/services subject to the franchise contract in the territory in which the franchisee is permitted to operate.
3. Prospects for the development of the above market.
VIII. Model Franchise Agreement
1. Name of the terms of the contract.
2. Term of contract.
3. Contract renewal conditions.
4. Conditions for the franchisee to cancel the contract.
5. Conditions for the franchisor to cancel the contract.
6. Obligations of the franchisor/franchisee arising from the cancellation of the contract.
7. Modify the contract as requested by the franchisor/franchisee.
8. Regulations on conditions for transferring the franchise contract of the franchisee to another trader.
9. In case of death, declaration of disqualification of the franchisor/franchisee.
IX . Information about the franchise system
1. Number of franchisor's operating locations.
2. Number of franchisor's business establishments that have ceased operations.
3. Number of franchise agreements signed with franchisees.
4. Number of franchise contracts transferred by the franchisee to third parties.
5. Number of franchisee business establishments transferred to the franchisor.
6. Number of franchise agreements terminated by the franchisor.
7. Number of franchise agreements terminated by franchisees.
8. Number of franchise contracts not renewed/renewed.
X. Financial statements of the franchisor
Audited financial statements for the most recent year.
XI. Rewards, recognition to be received or organization required to participate
We warrant that the proposed franchise business has been in operation for at least one (01) year; all information contained in this document and any additional information and attachments are accurate and true. We understand that providing any false information in this document is a violation of the law.
Franchisor Representative
(Signed and sealed)