FranX.asia

🇰🇭 Country hub · reviewed 2026-10-09

Franchising in Cambodia: the 2027 guide for foreign franchisors

Cambodia is one of the most open markets in the region for a foreign brand: no franchise act, no disclosure rules and full foreign ownership in food service. The one formality that matters is recording the franchise agreement with the Ministry of Commerce within six months, because an unrecorded agreement cannot be enforced against anyone else.

Cambodia at a glance

Franchise statute
None. Civil Code, Marks Law 2002 and Prakas 036 apply Secondary · Tilleke & Gibbins, Franchising in Cambodia, 2019-11-26
Recording
Franchise agreement recorded with MOC within 6 months Secondary · DFDL on MOC Prakas 036, 2020-02-01
Foreign ownership
Up to 100% in most sectors; no land ownership Secondary · Chambers Investing In 2026: Cambodia, 2026-01-20
Royalty withholding tax
14%; 10% under the Vietnam treaty Secondary · PwC Worldwide Tax Summaries, Cambodia, 2026-04-02
VAT
10%, reverse-charged by the Cambodian customer Secondary · Chambers Investing In 2026: Cambodia, 2026-01-20

Guides for Cambodia

Franchise law and registration in CambodiaCambodia's franchise rules explained: no statute, recording under MOC Prakas 036 within six months, competition-law limits and the planned franchise law.Can foreigners own a business or franchise in Cambodia?Foreign ownership in Cambodia: 100% foreign-owned F&B and retail under the 2021 Law on Investment, the land rule, and what Sub-decree 139 really does.Trademarks and IP for franchisors in CambodiaProtecting a franchise brand in Cambodia: first-to-file registration, mandatory licence recording, and filing through the Madrid Protocol.Tax on royalties and franchise fees in CambodiaCambodian tax on franchise royalties paid abroad: 14% withholding, 10% under the Vietnam, Singapore and Thailand treaties, and 10% VAT reverse charge.Finding a master franchisee in CambodiaHow to find and vet a master franchisee in Cambodia: the recording, competition and land rules that shape the deal, plus a vetting checklist.

How Cambodia compares

Cambodia: No statute. The Civil Code, the 2002 Law on Marks, Trade Names and Acts of Unfair Competition, and Ministry of Commerce Prakas 036 (2020) apply. A franchise law has been announced but not enacted. Compare it with Vietnam, Indonesia, Malaysia, Thailand, Philippines and Singapore in the ASEAN franchise law comparator.

Frequently asked questions

Is there a franchise law in Cambodia?

No. Franchising falls under the Civil Code, the 2002 Law on Marks, Trade Names and Acts of Unfair Competition, and Ministry of Commerce Prakas 036 of 13 January 2020 on recording licence and franchise agreements. The Ministry has announced a franchise law, but it has not been enacted.

Do I need to register a franchise agreement in Cambodia?

Yes, in the sense of recording it. The franchise or trademark licence agreement must be recorded with the Ministry of Commerce's Department of Intellectual Property Rights within six months of its effective date. An unrecorded agreement still binds the parties but has no effect against third parties.

Can a foreigner own 100% of a restaurant business in Cambodia?

Yes. The 2021 Law on Investment allows up to 100% foreign ownership in most sectors, and food service and retail are not restricted. Foreigners cannot own land; a company that holds land must be at least 51% Cambodian-owned.

What tax applies to franchise royalties paid out of Cambodia?

14% withholding tax on royalties paid to a non-resident, reduced to 10% under treaties such as the one with Vietnam, plus 10% VAT that the Cambodian franchisee accounts for under reverse charge.

Can a franchisor fix retail prices in Cambodia?

Not as a minimum resale price: the 2021 Law on Competition bans vertical agreements that impose one. Franchise agreements can apply for an exemption under the Cambodia Competition Commission's Decision No. 087 of 2 April 2024.

Looking for a partner in Cambodia?

Master and area rights open in Cambodia are listed on the FranX Rights Board. Operating stores for sale are on Resales.