Franchising arrangements are often the preferred means to enter the Thai marketplace by foreign parties unfamiliar with Thai law and business practice. As long as the foreign franchisor engages in no business activity in Thailand, it is not required to comply with Thailand’s Foreign Business Operations Act.
Carefully drafted franchise agreements allow foreign companies to control their local franchisees use of trademarks and service marks, trade names, trademark value and goodwill and licensing arrangements. They can provide a means for helping ensure quality control without having staff on the ground in Thailand. Analytics has drafted and assisted in the drafting of scores of franchising agreements for major, brand name franchisors.
Analytics works with foreign franchisors and outside counsel of foreign franchisors. Analytics understands franchise relationships and can explain their advantages and limitations of franchise relationships to franchisors.
Thailand does not yet have a “franchise law”, but this statement can be misleading for two reasons. Thailand has been discussing adoption of a franchise law, albeit for quite some time. More important, Thailand’s 1997 Trade Competition law has been used to regulate what many would consider franchise relationships under the guise of regulating “unfair” trade practices. The Trade Competition Commission has issued orders against an automotive company for from “unfairly” terminating an automotive distributorship because of, among other reasons, the alleged use of trading conditions that interfered in the trading conditions of its distributors. The gap between these sorts of orders and more traditional the straightforward regulation of franchise relationships under franchise laws is very narrow.
- Thailand’s New Credit Term RegulationBy Douglas Mancill and Nat Uawithya The Policy Rationale Behind Thailand’s Credit Regulation Negotiated terms between commercial parties of equal bargaining power are generally considered better than dictated terms. But regulatory authorities don’t always agree. Last year Thailand’s Trade Competition Commission (“TCC”) promulgated a credit terms regulation (the “Regulation”) intended to protect small-to-medium size enterprises (“SME”) from what it ...Read more
- Franchising Law in ThailandWhen someone mentions franchises, fast food burger joints are probably the first thing that comes to mind. But franchising can and is used for many other businesses. Franchising relationships include fitness clubs, food delivery services, cleaning services, property management services, financial and bookkeeping services, private schools, assisted living facilities, management consulting services and medical service providers. Almost ...Read more
- Cross Examination in International Arbitration – ThailandConducting a cross examination in an international arbitration proceeding is like conducting a cross examination in a domestic arbitration or trial, but there are some differences. International arbitrations, by definition, involve witnesses, arbitrators, and parties from different countries. Adopting a more civil and polite tone is almost always the best approach when you are representing ...Read more
- New Franchise Regulations in Thailand are a “Game Changer”For at least the past two decades, Thailand has been on the verge of enacting a franchise law. Law firms would issue bulletins to their clients announcing that a new law was about to be enacted on franchising relationships. The announcements would often say that the draft law would be enacted by year’s end. We ...Read more
- Effective and Persuasive English Language Advocates for Disputes in ThailandInternational arbitration is the best way to resolve cross border disputes. If the arbitration is conducted by a truly international arbitration institute, such as the Singapore International Arbitration Centre or the Thailand Arbitration Centre (THAC), the arbitration can be conducted in English, provided the arbitrator and counsel are capable of handling the proceedings in English. ...Read more
- Higher Returns for Property, Tourism, Entertainment, etc. Sectors After Pandemic EndsHigher Returns in Tourism, Property, etc., after the Pandemic Ends The Bangkok Post reported on 20 November 2020 that “Thailand’s biggest manager of distressed assets is bracing for another difficult year in 2021, as the economy faces more headwinds from the pandemic”. This article goes on to quote Bungyong Visatemongkolchai, the chairman of Bangkok Commercial Asset ...Read more
- Top 12 Things to Keep in Mind When Planning on Doing Business in ThailandThe top 12 things to keep in mind when planning to do business in Thailand: 1. Foreign Ownership of Companies and Land: This is often a surprise for business people and lawyers operating in more open economies, but foreigners are prohibited from owning land (absent narrow exceptions) and foreign majority owned businesses are prohibited from engaging in a ...Read more
- International Arbitration in Thailand – A Work in ProgressThailand has made some progress on international arbitration, but it’s still a work in progress. Thailand has, for example, made it possible for foreign representatives and arbitrators to conduct and participate in arbitration proceedings in Thailand, but some restrictions on foreign representatives and arbitrators remain. Judicial hostility towards arbitration awards against governmental bodies and other local parties ...Read more
- Facing the Foreign Business ActTo legally engage in activities restricted under the FBA, an alien company must obtain a Foreign Business License (“FBL”) or a Foreign Business Certificate (“FBC”) from the DBD. This is often easier said than done, but there are some exceptions.Read more