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Intellectual Property

A page that aggregates the latest news on trademark registration and intellectual property of Asoka Law, accompanying businesses in protecting intellectual property.

Franchising into Vietnam: Don’t Overlook Trademark Renewal

This article explains the legal consequences of using expired trademarks in franchise operations and offers solutions for global brands entering Vietnam.

In advising foreign brands entering Vietnam through franchising, we have identified a critical but often overlooked issue: many franchisors proceed with franchise agreements or even launch operations while their trademarks in Vietnam are already expired or legally invalid. This is not a mere formality - it poses serious legal risks, particularly for franchise models built on intellectual property assets.

Franchise vào Việt Nam: Đừng nhượng quyền khi nhãn hiệu chưa… gia hạn!

1. Expired trademark: Legal risks begin with the franchisor

Under Vietnamese law, a trademark is valid for 10 years from the filing date and can be renewed indefinitely, each time for another 10 years. However, once the expiration date passes without renewal, the trademark becomes invalid, stripping the franchisor of legal grounds to protect, assign, or enforce rights over the brand in Vietnam.

This situation often arises with trademarks registered via the Madrid System, where the owner assumes protection is automatic. In reality, renewal procedures, especially in Vietnam - require proactive tracking and timely action. Meanwhile, franchisees typically lack the legal knowledge or duty to verify the trademark’s validity.

2. Consequences of failure to renew on time

An expired trademark can undermine the entire franchise structure:

  • Loss of legal protection against third-party infringement.
  • Inability to stop unauthorized use of similar marks.
  • Franchise agreements may be unenforceable due to lack of assignable rights.
  • Franchisees may file claims or disputes against the franchisor.
  • Risk of market disruption and reputational damage.

In serious cases, the trademark may even be registered by another party, making re-registration difficult or impossible.

3. Legal safeguards for franchisors and IP owners

Franchisors should implement the following safeguards to ensure IP readiness before entering the Vietnamese market:

  • Audit all trademark registrations in Vietnam, especially those filed 10+ years ago.
  • Renew trademarks at least six months prior to expiry to avoid late fees or refusals.
  • Include an “active trademark warranty” clause in the franchise agreement to clearly assign responsibility.
  • Use an IP watch and renewal tracking system for all key markets.
  • Engage a specialized IP law firm in Vietnam to handle renewals, portfolio monitoring, and local compliance.

4. Asoka Law: Your IP legal partner for franchising into Vietnam

With over 16 years of experience in international trademark protection and franchise advisory, Asoka Law supports global brands in F&B, education, fashion, and technology with:

  • Renewal of international and national trademarks in Vietnam (Madrid and direct routes).
  • Ongoing trademark monitoring and deadline alerts.
  • Pre-franchise IP due diligence and risk assessments.
  • Full legal support across trademark, copyright, and franchising contracts.

Conclusion

A trademark is not just a logo, it is the legal foundation of any franchise system. If your trademark is expired, your rights to assign, license, or enforce the brand in Vietnam are effectively suspended.

Never grant a franchise when your trademark is not valid. Renew first, protect your brand, then expand with confidence.

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