Name: Bùi Nguyễn Đan Nguyên

Student ID: 31201022539

Class - Cource: IBC04 – K46

Identify some key challenges when franchising in Vietnam:

- Long approval processes: For a successful partnership, the brand has to be the right fit for
the franchisee, and the franchisee must be a right fit for the brand. Therefore, the
approvals process can be long and intensive.
- Higher-than-expected operating costs
- Less control over the brand: A slip up by one individual at one restaurant, big or small,
can impact the performance of other locations.

- Not as much decision-making power

- Different regulations from different countries.

- Ensuring Financial Viability of Franchise

- Ensuring Lines of Communication between Franchisors and Franchisees

- Legal framework: The franchise market in Vietnam is still in its infancy, with almost no
real case of law applying this law to resolve disputes between franchisors and franchisors.
Vietnam also does not have its own strong legal policies to support and encourage small
and medium enterprises when doing franchising.
- Human resources: Human resources in Vietnam with knowledge and experience in the
franchise sector are limited, do not have much information as well as specialized training
programs on franchising.