Franchisee still using your brand after termination? Use "de-identification clause" to lock in risk
加盟商解约后还挂你牌子?一招“去识别化条款”锁死风险
ຜູ້ຮ່ວມທຸລະກິດທີ່ຍົກເລີກສັນຍາແລ້ວຍັງວາງປ້າຍຂອງເຈົ້າຢູ່? ໃຊ້ “ຂໍ້ກຳນົດການຖອນສັນຍາລັກ” ລັອກຄວາມສ່ຽງ
Published: 2026-07-04 · LaoPaniti legal guides
You opened a milk tea chain in Vientiane, registered the trademark, and business is good. But recently, a franchisee terminated the contract but delayed removing your signage. Customers still think it's your store and even complain about product quality. You're panicking but don't know what to do. Don't worry. Today, we'll discuss how to use the "de-identification clause" in the contract to plug this loophole in advance.
What does the law say about continuing to use your brand after termination?
If the brand trademark is registered in Laos, according to Article 3 of the Intellectual Property Law (Revised), a trademark is a sign used to distinguish goods or services. After termination, continued use by the franchisee generally constitutes trademark infringement, and the right holder can claim cessation of infringement under this law. However, if the trademark is not registered, the difficulty of enforcement increases significantly because you need to prove that the other party constitutes unfair competition or other infringements.
Pre-event defense: Draft a good "de-identification clause"
Clearly stipulating post-termination obligations in the franchise contract is the most cost-effective preventive measure. According to Article 9 of the Civil code, parties to a civil relationship have the right to act freely based on their will, so such clauses can be freely agreed upon by both parties. It is recommended to include the following:
- Timely removal: Specify the number of days after termination to remove all signs and decorations bearing the brand logo.
- Cessation of use: Prohibit continued use of the trademark, brand name, and any similar identifiers.
- Account handling: Cancel or transfer social media accounts containing the brand name.
- Packaging disposal: Destroy or recall remaining packaging with the brand logo.
- Penalty: Specify a clear calculation method for liquidated damages, such as a daily fine.
- Acceptance method: Take photos for records and confirm removal in writing.
Post-event remedy: Evidence is key
If the franchisee does not cooperate, you need to collect evidence: send a written notice of termination and retain proof of delivery (e.g., courier receipt, signed record), take photos or videos on-site to prove ongoing infringement. Then, you can claim infringement under the Intellectual Property Law or demand liquidated damages under the contract terms.
Practical advice
Before signing, use LaoPaniti's AI contract review tool (https://www.123laoai.com) to check whether the franchise contract includes a de-identification clause. If a dispute has already arisen, you can also use LaoPaniti's free AI consultation for preliminary advice. Additionally, the trademark search function helps confirm whether the brand is registered, avoiding difficulties in enforcement.
This article is compiled by 老法智 LaoPaniti for reference only and does not constitute legal advice.
FAQ
What should I do if the franchisee does not remove the signage after termination?
First, check whether the contract has a de-identification clause; if so, claim liquidated damages as agreed. Second, collect evidence (written notice receipt, on-site photos) and file a lawsuit in court under the Intellectual Property Law to demand cessation of infringement. It is recommended to consult a professional lawyer.
If the trademark is not registered, can I still stop the franchisee from using my brand?
It is more difficult. For unregistered trademarks, you need to prove that the other party constitutes unfair competition or infringement of trade name rights, etc. It is recommended to register as soon as possible. In the absence of registration, the de-identification clause in the contract is still an important basis.
What should a de-identification clause include?
It should include: timely removal of signage, cessation of use of trademark and brand name, cancellation of social media accounts, disposal of remaining packaging, agreement on liquidated damages and acceptance method (taking photos for records).
Legal basis
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