Franchise business is becoming increasingly popular in Vietnam as popular international brands are opening stores across the country following its accession to the World Trade Organization four years ago. Franchising is a business model that benefits both sides in a transaction for the entrepreneur.
A franchise offers an entrepreneur a quicker entry into a market with less risk, as well as the advantages of having a recognized brand name and professional training system. It is important for both franchise and franchisee to identify the right time and map out strategies to ensure success in the market, paying special attention to environmentally friendly products and corporate social responsibility. The franchise model is highly valued worldwide for its high effectiveness and low business failure rate. Only 5% of businesses in the franchising sector fail as compared to 65% that use other models.