ARTICLE · 06 NOVEMBER 2024

Franchise Laws And Regulations Thailand 2025

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While there are no specific regulations governing franchising in Thailand, the Ministry of Commerce regularly announces plans to commence drafting regulations...

ThailandCompliance

Kasama Sriwatanakul

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1. Relevant Legislation and Rules Governing Franchise Transactions

1.1 What is the legal definition of a franchise?

While there are no specific regulations governing franchising in Thailand, the Ministry of Commerce regularly announces plans to commence drafting regulations, such as the Franchising Business Act. It is widely considered that Thailand may follow the China model as set out in the 2005 PRC Ministry of Commerce's Administrative Measures on Commercial Franchising and the subsequent 2007 Franchise Regulations. An important point to watch here will be whether Thailand follows the China model by requiring a franchisor to prove the viability of its business model by showing a track record of profitability at two or more outlets before selling a franchise contract to a franchisee.

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