Legal Regulation On The Anti-monopoly Law Of Franchise

With the mark of KFC into China Mainland in 1987, franchise has been developed quickly during 20 years, becoming an outstanding economic power among the numerous business operation modes. But at the same time, the relative laws are deficient or lag, which will affect the development of franchise consequently. As franchise's particularities, the franchiser is inclined to abuse superiority to restrict competition such as regional restriction, rescale maintenance, tied selling, returning selling, prohibition against competition. Furthermore, restriction competition will be possible implemented between a franchiser and franchisee because of the special business cooperation. Now, multinational and domestic corporate take their advantages to restrict competition more and more seriously. The western developed countries always attach importance to legal regulation on anti-monopoly of franchise, we should learn from them. So it is urgent to regulate franchise.To regulate franchise should balance both conflict and coordination of franchise intellectual property, should judge according to both Illegal rule principal and Reasonable rule principle, should balance both justice and efficiency. Since lacking Anti-monopoly Law, the Commercial Minister made Franchise Regulatory Rules which roughly provide"A franchiser mustn't restrict market competition when carry out franchise business", besides, there is no other laws and regulations. Although franchise can be applied of other laws and regulations, its present situation can't be adapted because of the incomplete system of law. Hence, we should create the idea of legal regulation on anti-monopoly law of franchise to perfect the regulation by"drawing lessons from and combination principle","reasonable balance principle","competition principle". At first, Anti-monopoly Law should be established, which can put franchise into the core law of anti-monopoly law. The second, perfect other relevant laws and regulations. At last, the State Department enacts a specialized franchise Regulation, clearly providing prohibiting franchise competition restriction behaviors and the terms of exemption. A all-directions, many layer classes, careful constructions, harmonious inner part law system is not only the basis of the legal regulation on anti-monopoly law of franchise but also the support and guaranty of franchise.