On The Commercial Franchise Authority And Its Protection Of Our Country

Commercial franchise is the most energetic and fast developing way of management in the world today. It was said by an American scholar that franchise is the third revolution in the retailing field and the most successful marketing concept beyond the memory of men after department store and supermarket. In America, franchise take the share of more than half of the retailing at home. In our country, franchise comes forth in the 80s last century and gets its fast development in recent years. According to statistics, China has been a country that has the most franchise league system in the world in 2004. The Regulations on Commercial Franchise was promulgated On February 23^rd, 2007, by the Commercial Ministry and comes into force on May 1^st, 2007. This will settle a sound legal foundation for the healthy development of the franchise in our country. The contract of commercial franchise is the footstone for the franchisor to establish its system of commercial franchise as well as the ligament on rights and obligations for the parties of franchise. And, commercial franchise authority is just the object stipulated, regulated and protected by all the articles in a contract of commercial franchise. Commercial franchise authority is the gist and premise for the franchisor to establish the system of franchise management. The franchisor combines all the series of elements having commercial values owned by him, such as trademarks, symbol of enterprise, patent, exclusive resources and management technique and so on, shaping them into immaterial assets having the reproductive function and introducing them into the market in order to sign franchise contract with the franchisee drawn on by the franchisor. The franchisee carries out the franchise management activities according to the commercial franchise authority granted by the franchisor, and forms a unified commercial franchise system gradually. This article deals with the authority and protection of franchise. The concept and characteristic of the commercial franchise are introduced in the first chapter. The scope of the commercial franchise is defined by differing the government franchise with the commercial franchise. In order to educe the essence of the commercial franchise—the admission of commercial franchise, the classification and difference from other commercial mode of commercial franchise is discussed in this chapter. In order to make the understanding of basic concept, characteristic, constitution and attribute of commercial franchise easier, the commercial franchise authority is analyzed and the admission of commercial franchise is introduced in the second chapter. In the third chapter, the way of protecting the commercial franchise authority owned by the franchisor by signing contract and legal means is dealt with and the action of government supervision and self-discipline of the trade in the protection of commercial franchise in order to keep the healthy function of the commercial franchise system, to safeguard the healthy and orderly development of the commercial franchise market, to lend new energy for the prosperity and development of the economy of our country. By the discussion and analysis of commercial franchise authority in this article, it is hoped that a better understanding of commercial franchise can be made by franchisor, franchisee and the people who want to join in the trade of commercial franchise, providing them a method or approach for protecting the commercial franchise authority.