Business Franchise Legal Issues

Franchise is an intelligent manner of business management, which controls property with the right of business administration. It has been a very popular way for enterprises' overspread and personal careers' development because of its sweeping dimensions, low cost and intelligence. It also actualises the efficacious management with large dimensions through low-cost overspread and standard service. The development of franchise is very fast, though it appeared late in China. Franchise brings business opportunities for the enterprises and individual as well as some business risks such as multitudinous speculation, farraginous franchisee and inundant fraud. Also, some franchisers do not know franchisees very much so that the franchisers invest curtly with high failure risk. At present, there is no specific law sand regulation to normalize franchise in China. This harms seriously to the development of franchise. Therefore it is an urgent and realistic issue that how to regulate franchise in legal field. In this dissertation, the author makes clear the basic question firstly that what franchise is. The author describes the essence of franchise by comparing several business and legal definitions. Of course, franchise is a management manner based on contracts and anfractuous legal relation. It should be regulated by many laws, such as Contract Law, Intelligent Law, Competition Law, and Taxation Law, etc. The emphasis of this dissertation is the analysis and research in franchise with the point views of Contract Law and Competition Law. As a particular intangible property right, franchise right's validity conditions in contracts content are different from general contracts. It is a question for this dissertation that the author tries to make it clear that how to apply Competition Law and Anti-Monopoly Law to franchise contracts. Because Chinese government has not formulated law forfranchising specifically, at last the author gives suggestions on how to regulate franchise in the future from the point views of consummating Iawmaking, strengthening administration and industrial association's self-discipline. Franchise will become the leading business mode in China in 21st century. To strengthen the legal theory research and fasten the Iawmaking of franchise is very important for normative market, active market economy and people's high standard life.