🇹🇭 Thailand · reviewed 2026-10-09
Franchise law and registration in Thailand
Thailand regulates franchising through competition law rather than a franchise act. That means no filing and no waiting period, but a list of practices the Trade Competition Commission treats as unfair and fines that are counted against turnover.
The legal base
- Thailand has no franchise statute. The Trade Competition Commission's Guidelines on Unfair Trade Practices in Franchise Business, issued under section 57 of the Trade Competition Act 2017, took effect on 4 February 2020 and were amended in 2020 and 2021. Secondary · Tilleke & Gibbins on the TCC franchise guidelines, 2019-12-24Secondary · LawPlus, TCC franchise guidelines, 2023-10-06
- A draft Franchise Business Act has been pending since 2006. In late 2024 it was described as not among the government's priorities. Secondary · Tilleke & Gibbins, ICLG Franchise 2025: Thailand, 2024-11-01
- There is no franchise registration and no government approval, no statutory cooling-off period and no minimum term. Secondary · Tilleke & Gibbins, ICLG Franchise 2025: Thailand, 2024-11-01
What must be disclosed before signing
- Before signing, the franchisor must disclose fees and costs, the business plan including the number and locations of nearby franchisees, key trademark, patent and copyright information and licence terms, and the terms for renewal, amendment and termination. No format, waiting period or financial statements are prescribed. Secondary · LawPlus, TCC franchise guidelines, 2023-10-06Secondary · Tilleke & Gibbins, ICLG Franchise 2025: Thailand, 2024-11-01
Practices treated as unfair
- Without good reason, the guidelines treat as unfair: forcing franchisees to buy goods or services unrelated to the franchise from a named supplier; adding conditions after the agreement is signed; barring purchases of comparable goods from cheaper suppliers; barring discounts on perishable or near-expiry goods; and discriminating between franchisees. Secondary · Tilleke & Gibbins on the TCC franchise guidelines, 2019-12-24
- 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, unless the franchisee missed performance criteria it was told about in advance or an area development agreement rules it out. Secondary · LawPlus, TCC franchise guidelines, 2023-10-06
- Non-compete covenants during and after the term are enforceable if they are not excessive; there is no fixed statutory cap. Secondary · Tilleke & Gibbins, ICLG Franchise 2025: Thailand, 2024-11-01
Penalties
- A breach can violate section 57 of the Trade Competition Act. The penalty is an administrative fine of up to 10% of turnover in the year of the offence, or up to THB 1 million in the first year of business. The Commission can order the conduct stopped or changed, directors who directed it can be liable, and injured franchisees can sue for damages. Secondary · Tilleke & Gibbins, ICLG Franchise 2025: Thailand, 2024-11-01
More on Thailand
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