| Since franchising appeared in the middle of last century in US, it had a rapid development all over the world. As a business expansion model of enlarged-scale, low-cost and intelligence, franchising shows a growing trend that has been predicted of the dominant business, model in 21st century. It mainly because that franchising could be used as management model in corporate development, as well as the start-up model to support those entrepreneurs who are lack of experience or initial capital. Besides, it plays an important part in the national economy on the macro scale.Though franchising has been introduced in China for only twenty years, it grew so fast that now China is the country which has the most franchising systems in the world. However, risks are emerged in the rapid progress of franchising, especially for the weak position as franchisee. For instance, financial fraud under the cover of franchising; inappropriate expansion under the condition of deficient franchising; franchisor who exaggerate the return, abuse usage of franchising or violation of franchising contract. These acts cause the damage of franchisee's rights; also impede the development of franchising. Therefore, it was essential to set up relative franchising laws and regulations and bring them into practice, in order to keep and enforce supervision of franchising in the direction.The article, from an angle of risks that franchisee is facing, discussed how to improve franchising laws and regulations, as well as strengthen the protection of franchisee's rights. It is divided into three parts as follows:Chapter one is an introduction of franchising. This part starts from the concept of franchising, summarize the all kinds of definitions, then includes its law characteristics. Followed by the analysis of the similarities and differences between franchising and other concepts which is easily mistaken. Finally, the author takes a simple review and analysis on franchising development as theoretical basis.Chapter two is about the reasons for the risk faced by franchisee. This part summarizes violation situations of franchisee's rights, and analyzes the origin and situation of risk from the economic and legal science angle.Chapter three proposed the legal protection of franchisee's rights. On the base of national Franchising Regulation, this part analyze the limitations on the behalf of franchisee's rights protection, and bring forward suggestions for the perfection of franchisee's rights which enlightened by the international advanced legal theory. |
