THAILAND BUSINESS LAW: the Franchise Business Operations Act


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March 30, 2011



The Director-General of Department of Business Development (DBD), Mr.Banyong Limprayoonwong, revealed that DBD has set up the conference on date 23 March 2011 to brainstorm and to discuss regarding the draft law of Franchise Business Operations Act.

The attendance were various person related to the franchise business; such as, franchise business owners, franchise buyers, representative of public sector and private sector, academician and other interested persons.

The franchise business nowadays is considered an important part of national economic system promotion; however, the franchise buyers, who mostly are small entrepreneurs, always being taken advantage of because appeals to unequal bargaining power.  Therefore, this Franchise Business Operations Act also influences the main purpose are to control the franchise businesses and to make the certitude or trust to both investors and consumers.

Mr.Banyong Limprayoonwong stated that DBD have set up a franchise business development plan, focusing on new franchise businesses and drive Thai franchise business to be standardized.

He also stated that Thailand at present has 400 franchises, 90 % owned by Thais and 10 % owned by foreigners; however, there are no legal standard set for the franchise business. The result of this standardize of Thai franchise law shall increase competitiveness to both franchise business and export business.

The franchise business development plan includes 3 steps as follow:

The first is to set up the training for a person who wishes to have their own franchise instead of buying from the other franchisors.

The second is to set up a higher level training which it shall be trained by successful experts and give the award to any franchise owners who reach the standard.

The final is that DBD shall promote the standardized franchise business to emerge as international Franchising by coordinating with Department of Export Promotion.



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