Restricting Competition Of Franchise And Its Legal Rules And Regulations

In franchising, the franchisor grant their trademarks, trade names, proprietary technology, patent to the franchisee, but the nature of the intellectual property licensing legal monopoly decide that the franchisor have the right to restrict franchisee'certain activities; at the same time, because of the franchisee has a comparative advantage position in the franchise, they always require tying, resale price maintenance, feedback, regional restrictions, non-competition and other restrictions on competition. Therefore, in the franchise, not only to protect the franchise system to maintain unity for man-made legal constraints; but also on the license to abuse of the concession and the implementation of the restriction of competition for legal regulation.Franchising is a business model that franchisor license franchisee to use the package of intellectual property, also franchisee should pay for a fee and under the unified management.It has four characteristics:One is based on the franchise contract; Second is the core franchise; Third, the image of unity manifested in the form; four is a fee for the right price. It also has important value on stimulating entrepreneurship, promote entrepreneurship, and expand employment and other aspects.Franchise restricting competition in a dual effect:on the one hand to maintain the unity of the system, thereby enhancing the competitiveness,the other hand, competition will produce a certain hazards, such as restrictions on competition within the system, push the price Carter Seoul, hinder movement of goods, the ultimate detriment of consumers.The theoretical basis of Legal Regulation and principles are the methods to evaluate and identify the basic problems in franchising law or otherwise restrict competition basis.Theory of free competition, consumer protection theory, the relationship between intellectual property and antitrust theory is limited franchise-competitive practices in the theoretical basis for regulation; because of the franchise to limit competition has two sides, in principle, be determined by the principle of reasonableness mainly secondary per se rule; in analysis should take full account of franchise-competitive behavior in the limit the impact of competition, when more harm than good can be identified when its illegal.Typical franchise restrictions on competition contain tying, feedback, limiting the resale price, area restrictions, prohibition, both side to promote competition and obstacle competition side, national anti-monopoly law to do these acts also specific regulation, in general, have adopted a relatively tolerant attitude.China's franchise industry has been in rapid development of the situation, but there are many problems, such as small size and low technological content, while our franchise legislation restricting competition principle only do the provisions do not cover all restricting competition. Regulatory system in the specific content of the rules of design, taking into account existing "Anti-monopoly Law","Anti-Unfair Competition Law" provisions have been made in principle, and from the licensing of intellectual property of the attribute of power, development of specialized intellectual property rights should be anti-monopoly guidelines, and in the guidelines joined the franchise business constraints competition badge, right regulatory Guiding ideology, Regulating Principles, Regulation model and the waiver system in the side of applying law,should be fully considered specificity of franchising,identify in different ways.