🇹🇭 Country hub · reviewed 2026-10-09
Franchising in Thailand: the 2027 guide for foreign franchisors
Thailand has no franchise act and no registry, but it is not unregulated. The competition watchdog's franchise guidelines can fine a franchisor up to 10% of turnover, an unregistered trademark licence is void, and the Foreign Business Act decides whether a foreign-owned company may run restaurants at all.
Thailand at a glance
- Franchise statute
- None. TCC franchise guidelines since 4 February 2020 Secondary · Tilleke & Gibbins on the TCC franchise guidelines, 2019-12-24
- Registration
- None for franchises; trademark licences must be registered Secondary · Tilleke & Gibbins, ICLG Franchise 2025: Thailand, 2024-11-01
- Penalty for unfair practices
- Administrative fine up to 10% of annual turnover Secondary · Tilleke & Gibbins, ICLG Franchise 2025: Thailand, 2024-11-01
- Foreign-owned restaurants
- Foreign Business Act List 3: licence needed Official · Department of Business Development, via BOI
- Royalty withholding tax
- 15% before treaty relief Official · Revenue Department, royalty withholding rates, 2014-01-29
- VAT
- 7% until 30 September 2027 (statutory rate 10%) Secondary · HLB Thailand on the 7% VAT extension, 2026-08-20
Guides for Thailand
How Thailand compares
Thailand: 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. Compare it with Vietnam, Indonesia, Malaysia, Philippines, Singapore and Cambodia in the ASEAN franchise law comparator.
Frequently asked questions
Is there a franchise law in Thailand?
No. Thailand has no franchise statute. Franchising is regulated by the Trade Competition Commission's Guidelines on Unfair Trade Practices in Franchise Business, in force since 4 February 2020, issued under section 57 of the Trade Competition Act 2017. A draft Franchise Business Act has been pending since 2006.
Do I need to register a franchise in Thailand?
No franchise registration or approval is needed. The trademark licence inside the franchise agreement must, however, be registered with the Department of Intellectual Property; an unregistered licence is void.
Can a foreign company own restaurants in Thailand?
Food and beverage sales are on List 3 of the Foreign Business Act, so a foreign-majority company needs a Foreign Business Licence, or a Foreign Business Certificate if it has Board of Investment promotion. Retail is exempt from the list only above THB 100 million total capital or THB 20 million per store.
How much tax is withheld on franchise royalties paid from Thailand?
15% withholding tax on royalties and franchise fees paid to a foreign company not doing business in Thailand, unless a tax treaty lowers it. The Thai franchisee also self-assesses 7% VAT on the fee, a rate extended to 30 September 2027.
What franchise practices are unfair in Thailand?
Under the Trade Competition Commission guidelines, without good reason: forcing franchisees to buy unrelated goods from a named supplier, adding conditions after signing, blocking cheaper comparable supplies, blocking discounts on near-expiry goods, and treating franchisees differently. Opening a new outlet near a franchisee requires first offering it a right of first refusal.
Looking for a partner in Thailand?
Master and area rights open in Thailand are listed on the FranX Rights Board. Operating stores for sale are on Resales.