Competition Law Of The Franchise

Franchising is a low-cost, low-risk methed of expanding business, which allows a company to gain nationall and international trademark and trade name recognition without a huge investment of their own captial.Simuhaneously, an entrepreneur can take advantage of the expriences, oversight and recognition of the parent company, thereby giving his business venture a head start, Since its emergence in America in 19th cenury, this win-win situation prompted the flood of franchies growth in the world, proved by more than one hundred years' history of clevelopment investment choice, which has the highest rate of success.Franching is the popular business model in the world, there are many benefits to both parties of franchising contract. However, compared to more than 100 years' history of overseas devecopment,franchising is still a kind of brand new business in china. At the same time, we should also make sure that franchising was introduced into Mainland china in such circumstances that relative laws and regulations were imperfect and relative theory was not well established. Among the legal issues on franchising, the competition law of franchising is the core one. Establishing and strengthening the legal system of competition law plays an important role in franchising development in certain countries.The core of franchising is intellectual property. Intellectual property's legell monopolization is a decisive factor of franchisor's right in restricting franchisee's activities in their contract to some extent. At the same time, in the operation of franchising ,the franchisor has relatively dominant or anti-competition; therefore ,the protection of which needs anti-unfair competition act, while the regulation its abuse needs anti-monopoly law; License management contract have a lot of restriction competition clause such as pair unsalable up with goods that sell well, is it resell price ,area limit clause ,etc. to keep, how treat clause these, mission certainly, competition of law, is author's purpose of writing this text too. Because of this, this text describes around the following content mainly:Foreword : Introduce the selected title meaning of this text, draw the subject of this textFirst part : Have originally introduce the concept of franchise operation partly, has analysed the legal characteristic of franchise operation. I think essential characteristic of franchise operation to license people transfer one's own intellectual property right is it let people use to give, let people to pay certain expenses. Probe into franchise operation in the advantage and certainty of development of China, think , in order to ensure the sound development in China of franchise operation, the competition behavior of necessary restriction on the thing that in franchise operation of our country carries on the regulation system of the competition .Second part : Originally limit the form of expression of the competition behavior mainly in some key research franchise operation: Pair unsalable up with goods that sell well, keep reselling prices , territorial restriction. Have restrained the competition behavior from carrying on the analysis of the concept and evaluation and analysis of the behavior to franchise operation. Three behavior these limit and hinder market competition is behavior that should forbid in law, but consider its particularity in franchise operation, there is the positive one that there is negative side. We should take the comparatively flexible attitude while entering legal structure to it, should protect legitimacy its as well as control their getting illegal.The third part : Originally some comprehensive comparative research European Union, competition law of U.S.A. limit the structure of the competition behavior to franchise operation. Through study relatively, I think western countries restrain structureof behavior from is it forbid to franchise operation with special to exempt from principle that combine together generally to adopt. This kind of principle has well reflected the characteristic that franchise operation limits behavior dual character of the competition , very worth our drawing lessons from .The fourth part : Introduce our country legislative situation of franchise operation correctly and point out of our country competition law limit competition weak point , behavior of structure to franchise operation at first partly originally. Secondly , use for reference European Union , U.S.A. about legislative experience of franchise operation , propose our country carry on competition legislative suggestion that regulation made to franchise operation.I think, on one hand our country should lay special stress on protecting the business secret right of franchisor through perfecting the law against competition by inappropriate means at present;On the other hand ,should step up making the antimonopoly law and licensing the behavior that people abuse the charaterd right with the structure, and the system except using the antimonopoly law and is applicable to properly. In this way, the fast development on the healthy track that the franchise operation ability of our country is here.