A Research On The Causes Of Franchising Fraud And Countermeasure

Since Isaac Singer Co., Ltd distributed their products using franchise the firsttime in 1950's, this commercial mode has spread all over the world very fast.However, people always overlook its potential risk because franchise is thought as a"proved successful" commercial mode, which made them be cheated. This can be toldfrom increasing franchise depute cases. What it brings out is not only the bankruptcy,but also damage to the franchise business. This paper analyzes the causes of cheating behaviors in franchise and put out somepolicies and suggestions, from the angles of franchisor, franchisee and the third partyand based on typical cases. Compared to former papers which were mainly focused onanalysis of separated case, this one innovatively researches and analyzes differentclassifications among the whole occupation, in order to give some reference for thehealthy development of franchise.