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When considering a franchise, many people first think of a restaurant, retail chain, or service outlet. From a legal perspective, however, the foundation of every franchise lies in the right to use a brand, which is typically granted through a trademark license. Trademarks are often the most valuable assets in a franchise system. Through a trademark license, a franchisor authorizes a franchisee to use its trademarks, logos, and branding while maintaining control over how the brand is presented to customers.
The Role of Trademarks in Franchise Businesses
Under the Trademark Law 2019, a mark is defined as a sign that is capable of distinguishing the goods or services of one undertaking from those of others in the course of trade. This distinguishing function is particularly important in a franchise arrangement, where the franchisee’s use of the franchisor’s trademark allows consumers to recognize the source, quality, and reputation of the business. In this way, trademarks help preserve brand identity, strengthen market recognition, and protect the commercial value of the franchise system.
Legal Foundation for Franchise Brand Protection
Myanmar presently does not have a specific statutory framework governing franchise arrangements. As a result, franchise agreements are generally regulated under the broader applicable legal framework, including the Contract Act 1872, the Trademark Law 2019, the Competition Law 2015, the Consumer Protection Law 2019, and the relevant implementing rules and regulations.
The licensing of trademarks within a franchise arrangement is particularly governed by the Trademark Law 2019. Franchisors should ensure that the trademarks intended to be licensed to franchisees in Myanmar are registered under the Trademark Law 2019 and that the relevant trademark license is properly recorded with the Intellectual Property Department (IPD).
Trademark License Recordal
Under the Trademark Law 2019, the owner of a registered trademark may grant a license to another person or legal entity to use the registered mark. For the license to take effect, an application for recordal must be filed with the IPD, either by the trademark owner or the licensee. Under current rules, recordal is available for registered trademarks only, while license recordal procedures for pending trademark applications have not yet been prescribed.
Recommendations for Franchises in Myanmar
Foreign brands seeking to enter the Myanmar market through franchising should ensure that their trademarks are registered in Myanmar before commencing business activities. Proper trademark protection is essential to reduce enforcement difficulties, prevent unauthorized use of the brand, and mitigate avoidable legal and commercial risks.
A franchise arrangement is a brand-based commercial relationship grounded in trademark rights. For businesses operating in Myanmar, a well-drafted trademark license is therefore critical to protecting brand value, maintaining consistent quality standards, preserving operational control, and supporting sustainable long-term growth.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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