Business Franchise Information Disclosure System

The business charter management is the most popular business model in themodern and economic market, but in permit specially the management expansion,many charter individuals exaggerate the profits and conceal the important fact tolure the others to become part of their teams, it then breaches the markettrustworthiness etc. The information asymmetry allowed a franchisor to have moreinformation than the others, which created many risks for potential franchisees, andit also disturbed the order of the market.Establishing a better system will force the franchisor to disclose information onthe risk and benefits of the investment to the potential franchisees, allowing them tomake a decision to mean under the circumstance that information is fully disclosed,lowering the risks to be subjected. Therefore, the franchise information disclosuresystem is an important tool that supports the market order. The system in ourcountry is established at a later stage comparing to other countries, and it also needsfurther improvement. Therefore this essay mainly focuses on the business chartermanager of our country by comparing it to the fully established ones in other nations,and it will also provides recommendations and legal advices that could possibly beimplemented to solve the issues that we are currently facing.Chapter one is a brief introduction on information disclosure system. It focuseson the concept of the business charter management and franchise informationdisclosure system. In addition, it will also provide an overview of the systems invarious countries.In chapter two, explanation of the analysis on the system will be provided. Theanalysis between nations'systems in different aspects such as the forms, the time,the disclosures and more will be compared. This chapter is the core of this paper.Chapter three focuses on the legal responsibilities, waver systems, violations andcivil liabilities of nations.In chapter four, issues will be raised and recommendations will be provided onhow to improve the disclosure system in our country.