Cambodia

Franchise regulation

No specific franchise regulation.

Pre-contractual disclosure requirements

None

Registration

In order for the franchise agreement to be enforceable against third parties, it is required that it is registered with the Department of Intellectual Property Rights. The recordal of the agreement allows the franchisee to enforce trademark rights in accordance with the franchise agreement against third parties.

Without such recordal however, the franchise agreement would still be valid between the parties.

If the franchisor does wish to register the franchise agreement, it must be done within 6 months of the date of the agreement and must be translated into Khmer.

Other issues

Local law advice should be sought on the following clauses of the franchise agreement to ensure they are effective under local laws:

• real estate;
• tax;
• guarantees;
• intellectual property;
• non-compete obligations;
• advertising requirements; and
• dispute resolution.

In addition, the agreement should contain quality control provisions allowing the franchisor to manage the quality of the goods associated with its trademarks.

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Contact Jay Cohen, Tilleke & Gibbins