Franchise Contract Regulations in the Philippines?

You can franchise your business!

I'm not saying you should or you are ready to do so. I am saying that if you want to do it, and if someone is willing to franchise your business knowing fully well the performance of your business, you can!

There is no dti registration or securities and exchange registration that is required before you can enter into a franchise contract as a franchisor. As of this writing, there is yet to be a law that regulates franchise contracts.

Parties to a contract are free to stipulate any terms and conditions as long as it is not contrary to law, morals, good customs, public order and public policy. Thus, a person, having the exclusive right to use a business name, a trade mark, and knowledge of certain systems that makes a business profitable, can enter into a contract sharing these rights and knowledge in exchange for a fee or fees. Such contract, if devoid of any misrepresentations and false information, is perfectly valid.

However, a franchise contract, in order to be worth the while of the parties, must contain certain terms and conditions for a fruitful business relations of parties. Otherwise, a franchise contract will be more of a burden than an asset. Call now and book your appointment.