FranX.asia

7 markets · reviewed 2026-10-09

ASEAN franchise law, side by side

Four of these seven markets have no franchise statute at all, and one makes foreign franchisors wait for ministerial approval before they sell a single unit. Here is what a franchisor entering Vietnam, Indonesia, Malaysia, Thailand, the Philippines, Singapore or Cambodia has to register, disclose and expect, with the source next to every line.

ASEAN franchise law at a glance
MarketStatuteRegistrationDisclosure
🇻🇳 VietnamYesRequiredStatutory
🇮🇩 IndonesiaYesRequiredStatutory
🇲🇾 MalaysiaYesRequiredStatutory
🇹🇭 ThailandNoNoneGuideline
🇵🇭 PhilippinesNoConditionalNone
🇸🇬 SingaporeNoNoneNone
🇰🇭 CambodiaNoRequiredNone

🇻🇳 Vietnam

Law
Yes. Commercial Law 2005, Articles 284 to 291, and Decree 35/2006/ND-CP, amended by Decree 120/2011 and Decree 08/2018. Official · Decree 35/2006 consolidated text (VBHN 15/VBHN-BCT), 2014-04-25
Registration
Franchises coming into Vietnam from abroad must be registered with the Ministry of Industry and Trade before franchising starts. Domestic franchises and outbound franchises only report to the provincial Department of Industry and Trade. Official · Decree 35/2006 consolidated text (VBHN 15/VBHN-BCT), 2014-04-25Official · MOIT franchise registration notice, 2025-09-03
Disclosure
A sample agreement and disclosure document at least 15 working days before signing, unless the parties agree otherwise. The disclosure template asks for audited financial statements for the latest year. No cooling-off period and no minimum term. Official · Decree 35/2006/ND-CP, Art. 8, 2006-03-31Official · Decree 35/2006 consolidated text (VBHN 15/VBHN-BCT), 2014-04-25
Foreign franchisors
The business system must have operated for at least one year before it is franchised. Separately, Decree 342/2026, reported in force from 18 October 2026, governs retail-outlet licences for foreign-invested companies; it matters when a foreign franchisor's own subsidiary runs stores. Secondary · Tilleke & Gibbins on Decree 08/2018, 2018-01-16Secondary · Luật Việt An on Decree 342/2026, 2026-09-03

🇮🇩 Indonesia

Law
Yes. Government Regulation (PP) 35/2024 on Franchising, in force since 2 September 2024, which replaced PP 42/2007. Official · PP 35/2024, BPK JDIH, 2024-09-02
Registration
Every franchisor, master franchisee and franchisee, foreign ones included, needs a Franchise Registration Certificate (STPW), applied for through the OSS system. Secondary · Tilleke & Gibbins on PP 35/2024, 2024-10-01
Disclosure
A prospectus in Bahasa Indonesia at least 14 calendar days before signing, including the last two years of financial statements, outlet count and franchisee list. Secondary · Linklaters, 10 things on PP 35/2024, 2024-10-04
Foreign franchisors
The business must have run for three consecutive years with two profitable years of financial statements. Fines were removed: sanctions are warnings, suspension and revocation of the STPW. Secondary · Linklaters, 10 things on PP 35/2024, 2024-10-04Secondary · Tilleke & Gibbins on PP 35/2024, 2024-10-01
Full Indonesia guide →

🇲🇾 Malaysia

Law
Yes. Franchise Act 1998 (Act 590). The Franchise (Amendment) Act 2020 came into force on 28 April 2022. Secondary · Christopher & Lee Ong, Franchise (Amendment) Act 2020, 2022-05-01
Registration
Franchisors register with the Registrar of Franchises, now under the Ministry of Entrepreneur and Cooperatives Development (KUSKOP), on its MyFEX 2.0 system. Franchisees of local franchisors register within 14 days of signing; registrations last five years and are renewable. Official · KUSKOP (Registrar of Franchises, MyFEX 2.0)Secondary · Christopher & Lee Ong, Franchise (Amendment) Act 2020, 2022-05-01
Disclosure
The agreement and Registrar-approved disclosure document at least 10 days before signing, with the latest three years of audited accounts. A cooling-off period of at least seven working days is compulsory, and the minimum term is five years. Secondary · AmCham MalaysiaSecondary · Christopher & Lee Ong, Franchise (Amendment) Act 2020, 2022-05-01Secondary · DNH, amended Franchise Act
Foreign franchisors
A foreign franchisor needs the Registrar's prior approval under section 54 before selling a franchise in Malaysia, then registers under section 6. Its franchisees must register before they start business. Secondary · Rahmat Lim & Partners, 2022-12-05Secondary · Christopher & Lee Ong, Franchise (Amendment) Act 2020, 2022-05-01
Full Malaysia guide →

🇹🇭 Thailand

Law
No statute. The Trade Competition Commission's Guidelines on Unfair Trade Practices in Franchise Business took effect on 4 February 2020 and were amended in 2020 and 2021. A draft Franchise Business Act has been pending since 2006. Secondary · Tilleke & Gibbins, 2019-12-24Secondary · Tilleke & Gibbins, Franchise Laws Thailand 2025, 2024-11-06
Registration
No franchise registration or approval. Trademark licences must be recorded with the Department of Intellectual Property, with a Thai translation. Secondary · Tilleke & Gibbins, Franchise Laws Thailand 2025, 2024-11-06
Disclosure
Before signing, disclose fees, the business plan including nearby franchisees, IP licence terms, and renewal and termination terms. No set format, waiting period or financial statements; no cooling-off and no minimum term. Secondary · LawPlus, TCC franchise guidelines, 2023-10-06Secondary · Tilleke & Gibbins, Franchise Laws Thailand 2025, 2024-11-06
Foreign franchisors
Before opening a new outlet near an existing franchisee, the franchisor must offer the nearest franchisee a right of first refusal with at least 30 days to respond. Foreign-owned operators may fall under the Foreign Business Act. Secondary · LawPlus, TCC franchise guidelines, 2023-10-06Secondary · Tilleke & Gibbins, Franchise Laws Thailand 2025, 2024-11-06
Full Thailand guide →

🇵🇭 Philippines

Law
No statute. Franchise agreements fall under the Civil Code and are treated as technology transfer arrangements under the IP Code (RA 8293). Executive Order 169 (2022) is the only franchise-specific instrument. Secondary · Chambers Franchising 2025, Cruz Marcelo & Tenefrancia, 2025-01-01Official · Executive Order 169 (2022), Lawphil, 2022-05-12
Registration
No IPOPHL registration if the agreement complies with IP Code sections 87 and 88. Agreements with micro, small and medium franchisees must be registered with the DTI within 30 days under EO 169. Official · RA 8293 (IP Code), Lawphil, 1997-06-06Official · Executive Order 169 (2022), Lawphil, 2022-05-12
Disclosure
No statutory disclosure document. EO 169 sets minimum agreement terms for MSME franchisees, including full fee disclosure and a cooling-off period, with no penalties attached. Official · Executive Order 169 (2022), Lawphil, 2022-05-12
Foreign franchisors
Foreign franchisors need no licence to franchise. A foreign-owned operator of stores must meet RA 11595: PHP 25 million paid-up capital and PHP 10 million per store if it runs more than one. Secondary · Chambers Franchising 2025, Cruz Marcelo & Tenefrancia, 2025-01-01Official · RA 11595, Lawphil, 2021-12-10
Full Philippines guide →

🇸🇬 Singapore

Law
No statute. General contract and commercial law apply, including the Competition Act 2004 and the Trade Marks Act 1998, plus a voluntary Code of Ethics for members of the Franchising and Licensing Association. Secondary · Pinsent Masons, Operating a franchise in Singapore, 2025-10-16
Registration
No franchise registration. Master franchise schemes are excluded from the anti-pyramid-selling law only if they meet the conditions of the Excluded Schemes Order. Secondary · Pinsent Masons, Operating a franchise in Singapore, 2025-10-16Official · MLM and Pyramid Selling (Excluded Schemes) Order, Singapore Statutes Online
Disclosure
No statutory disclosure document, cooling-off period or minimum term. Secondary · Pinsent Masons, Operating a franchise in Singapore, 2025-10-16
Foreign franchisors
A foreign owner can hold 100% of a Singapore company, which needs at least one director ordinarily resident in Singapore. Franchise agreements, as vertical agreements, are excluded from the Competition Act's ban on anti-competitive agreements. Official · ACRA, share capitalOfficial · ACRA, company directorsOfficial · CCCS, scope of the Competition Act
Full Singapore guide →

🇰🇭 Cambodia

Law
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. Secondary · Tilleke & Gibbins, Franchising in Cambodia, 2019-11-26Secondary · DFDL on MOC Prakas 036, 2020-02-01Secondary · Asia IP on the planned franchise law, 2024-01-01
Registration
The franchise or trademark licence agreement must be recorded with the Ministry of Commerce's Department of Intellectual Property Rights within six months; unrecorded, it has no effect against third parties. Secondary · DFDL on MOC Prakas 036, 2020-02-01Secondary · Tilleke & Gibbins on licence recording, 2015-11-03
Disclosure
No pre-sale disclosure, cooling-off period or minimum term. Secondary · Tilleke & Gibbins, Franchising in Cambodia, 2019-11-26
Foreign franchisors
Up to 100% foreign ownership in most sectors, F&B and retail included; foreigners cannot own land. Minimum resale prices are banned under the 2021 Competition Law. Secondary · Chambers Investing In 2026: Cambodia, 2026-01-20Secondary · Tilleke & Gibbins on competition-law exemptions, 2025-06-04
Full Cambodia guide →

Frequently asked questions

Which ASEAN countries have a franchise law?

Of the seven markets compared here, Vietnam, Indonesia and Malaysia have franchise-specific rules: Vietnam's Commercial Law and Decree 35/2006, Indonesia's Government Regulation 35/2024, and Malaysia's Franchise Act 1998. Thailand, the Philippines, Singapore and Cambodia have no franchise statute; Thailand uses competition-law guidelines, the Philippines the IP Code plus Executive Order 169, Singapore general contract law, and Cambodia a Ministry of Commerce rule on recording agreements.

Where does a foreign franchisor have to register before selling franchises?

In Vietnam, with the Ministry of Industry and Trade for franchises coming from abroad. In Malaysia, a foreign franchisor needs prior approval under section 54 of the Franchise Act and then registration with the Registrar of Franchises. In Indonesia, franchisors and franchisees need a franchise registration certificate (STPW). Thailand and Singapore have no registration; in the Philippines only agreements with MSME franchisees are filed with the DTI, and in Cambodia the franchise agreement is recorded with the Ministry of Commerce within six months.

How long before signing must a franchisor give a disclosure document?

At least 15 working days in Vietnam, unless the parties agree otherwise, and at least 10 days in Malaysia. Indonesia requires a prospectus in Bahasa Indonesia at least 14 calendar days before signing. Thailand requires pre-signing disclosure of key terms without a set waiting period; the Philippines, Singapore and Cambodia have no statutory disclosure.

Which ASEAN country has the strictest franchise law?

Malaysia, on the measures compared here: foreign franchisors need ministerial approval before selling, every franchisor and franchisee registers, disclosure includes three years of audited accounts, and every agreement must carry a cooling-off period of at least seven working days and a minimum term of five years.

Is there a cooling-off period for franchisees in Southeast Asia?

Malaysia requires a cooling-off period of at least seven working days in every franchise agreement. Vietnam, Thailand, Singapore and Cambodia set none. In the Philippines, Executive Order 169 lists a cooling-off period among the minimum terms for agreements with MSME franchisees.

Can a franchisor open a new outlet next to an existing franchisee in Thailand?

Only after offering the nearest existing franchisee a right of first refusal with at least 30 days to respond, under the Trade Competition Commission's franchise guidelines. The rule does not apply if the franchisee missed performance criteria it was told about in advance, or where an area development agreement rules it out.

Does Vietnam's Decree 342/2026 change franchise rules?

No. Decree 342/2026 replaces Decree 09/2018 on trading in goods by foreign-invested companies, including retail-outlet licences. It matters to a foreign franchisor only if its own Vietnamese subsidiary runs stores; franchise registration is still governed by Decree 35/2006.

How current is this comparison?

Every line was checked against its source by Lexi, Go Global Holdings' AI legal-research agent, on 9 October 2026, and each source is shown with its own date. Laws change; check the source and take local legal advice before acting.

From the law to a deal

Read the full country guides for Indonesia and the Philippines, or see which master and area rights are open on the Rights Board.