Anti-monopoly Issues In Franchise

Franchise as one pattern of vital and expandable business management suits to the market-oriented economy scale and globalization. With the developing of the economy, franchising has been developing rapidly and become one of the most classic management patterns.Franchise is related to many law issues, among which the more important one is anti-monopoly law. In franchise, franchisor offers a franchisee his own rights in the form of contract. In order to protect the franchise system, the franchisor may take measures to restrict the franchisee's activities in their contracts. On the one side , because the central rights of franchise involve intellectual property rights and other exclusive rights, such as technology and skills rights, and these rights sometimes are legal monopolies ,the restricts may be legal . On the other side, the restricts may break the anti-monopoly rules and become illegal monopolies. In practice, the illegal monopoly behaviors have seriously disturbed the competition orders. So, how to protect the franchisor's right of legal monopoly and regulate the franchisor's behaviors of restricting competition is one hard task at present.