THE PHILIPPINES: Registration of MSME Franchise Agreements Now Required

Franchise holders of micro, small and medium enterprises (MSMEs) are now required to have franchise agreements registered with the Department of Trade and Industry (DTI). According to a presidential executive order (EO), Executive Order No. 169, s. 2022, released on 12 May 2022, the franchisors will be responsible for registering agreements with the DTI. 

Members of registered franchise associations may register standard franchise agreements with the DTI and provide an undertaking that all future agreements will include the required minimum terms and conditions in the EO. Franchisors who are not members of a registered franchise association must register all their franchise agreements with MSME franchisees within 30 days from execution. The DTI will issue implementing guidelines within 90 days.