Franchise Agreements & Franchising in Thailand
A franchise only sells if the branches make money

A franchise only sells if the branches make money
Franchises that last do not start with the contract; they start with a branch that still makes money after paying the franchisor. We help brand owners model branch economics, set entry and ongoing fees both sides can live with, register the trademark, and draft agreements and manuals that can be enforced, with full disclosure to prospects. For buyers, we review the contract and the numbers before you sign.
What we cover
Start with branch economics
Before selling franchises, work out what a branch earns after royalties and the supplies it must buy from the brand. If the pilot branch pays back slowly, every franchise sold passes the problem on to franchisees and to the brand's name. We help set entry and ongoing fees that make sense for both sides.
The trademark is the asset
Register the mark for the goods and services actually used, grant the licence in writing and record it with the Department of Intellectual Property. Recipes, processes and manuals are protected by confidentiality terms.
Agreements that hold up
The agreement should settle store standards, territory, supply, audits, renewal and what happens on termination. Terms that are unreasonably one-sided risk breaching the Trade Competition Commission's guidelines and may not be enforced by a Thai court.
For franchisees
Ask for the disclosure document and figures from operating branches, and talk to existing franchisees before signing. We check the terms that cause trouble later: minimum purchases, mandated refits and penalties for closing before the term ends.
Foreign brands entering Thailand
Choose between a master franchisee for the whole country and entering directly, check whether the business needs a Foreign Business Licence, and plan for withholding tax on royalties paid abroad, which a double tax treaty may reduce.
Talk to us about this
Free initial consultation. Tell us what your business needs and we'll map the steps and a quote.
Frequently asked questions about Franchising
6 questions answered
Further reading
Should your Thai operating company or an offshore holding entity own the mark? What first-to-file means when your brand launched abroad, licensing the mark down to your Thai company, employee and contractor IP, and what a diligence lawyer will look for later.
9 min readBusiness LawThailand protects the first to file, not the first to use. How a Thai trademark application moves from search to registration, what to prepare, where applications get refused or opposed, and how to keep the registration alive once you have it.
9 min readForeign Investment GuideChoosing a market-entry route before committing capital. Who is the importer of record and what that commits each party to, the distributor agreement terms nobody drafts until it is too late, warranty exposure by route, and a decision table by volume, margin, control and speed.
10 min readOther business services

Ready to hear your story
Get an initial consultation with one of our experienced attorneys.