Legal Research Of Franchise

The first chapter discusses the extension of franchise. By comparing of different definitions used by International Franchise Commission, Europe Franchise Commission and Macao government, customarily franchise includes two aspects. Firstly, the warranty of incorporeal property rights is certainly the core of franchising system, such as the warranty of a brand name or a trade name and so on. Secondly, franchising contract is a series of agreements, in which there are agreements about training for franchisees and franchiser's backup in advertisement.Franchise is analyzed in the views of economics in chapter two. Depending on the diversity of dealing costs, there are three kinds of franchise. Firstly, the franchisee becomes a part of the franchiser, that's to say the franchisee and the franchiser are one enterprise. Secondly these two are independent firms, which are linked by a franchising contract. When the dealing costs are not so high, it's a good way. At last, there is one type between the former two. This type of franchise not only has the contract in the second type but also has some characteristics of the first type. So franchise could be defined in this way: it is a business system about products, service, technology and distribution, in which franchisees are entitled to utilize franchisers' incorporeal property on the condition of paying franchise charge, at the same time franchiser should train the franchisees and backup them. Franchise is compared with other traditional business modes in the views of law in the third chapter.The fourth chapter interprets the protection of intellectual property. In china, brand name and firm name should be protected in different ways, so do know-how and patent. It is vital for franchise to found a perfect system of the protection of intellectual property in China.The fifth and sixth chapter demonstrate how to conquer unticompetition behavior and how to distribute the liabilities. The author will give different plans for every concrete type of franchise. At last, some advises are given about the foundation of a legal system for franchise in China.