An Unregulated Franchising Environment (updated October 2019)

In the Philippines, there is no requirement to register a franchising agreement. A Technology Transfer Arrangement need not be registered with the Intellectual Property Office if it complies with the mandatory provisions and does not contain any of the prohibited clauses. On the other hand, some countries require that the franchise agreement be registered and oftentimes updated annually. Parenthetically, since there is no law specifically addressed at franchising, there is also no government agency charged with regulating the business of franchising in the Philippines. Perhaps, it is about time that Congress enact a law on franchising to protect the legitimate players in such thriving industry.

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Dissecting a Franchise Agreement: Part One

If you are interested in franchising, whether as a franchisor or a franchisee, an important document to consider is the franchise agreement. A franchise agreement is usually a voluminous document. Of course, it is not the intention of the franchisor to confuse the franchisee. It is lengthy because it specifies in detail what the respective […]

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Dissecting a Franchise Agreement: Part Two

The first part of “Dissecting a Franchise Agreement” dwelled on the subject matter of the franchise agreement, namely, the business format being franchised. Since a franchise agreement is usually a lengthy document, it is best that the agreement be broken down into its basic elements, to allow prospective franchisors and franchisees to understand its bare […]

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Dissecting a Franchise Agreement: Part Three

The last element of any contract, which is necessarily present in a Franchise Agreement, is the element of cause or consideration. Our law defines cause or consideration as the prestation or promise of a thing or service by the other. In a Franchise Agreement, the cause or consideration involves the “why?” in the agreement. Why […]

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