Franchise Contract Research

As a low cost, high efficient commercial operating pattern, the franchising is very popular all over the world nowadays. In China, it also develops very quickly. But at the same time, many complicated legal disputes accompany it. As for the franchising, scholars often do researches from the point of the market regulations, while do little from that of the franchising itself. This article systematically depicts the franchising contract in five parts according to the contract law.The first part analyses in comparison the definition of the franchising from the law and line of business by some countries and zones. The countries and zones related above emphasize particularly on different points from different regulations on how to define the franchising by the law, they also exclude some intrinsic commercial patterns from the definition of the franchising by the law in need of the control of the franchising. Though some business associations differ in expressing its business definition of the franchising, there is no essential difference and the business definition covers more than the law definition as well. This part analyses some definition of the franchising by the law in outline and holds the view that from the business conventionalism, the limits should be extended. All the business activities that conform to the franchising ought to be regarded as the franchising. Thus the agreements formed by the two sides should be the franchising contract, and be adjusted to by the con tract law.The second part analyses the franchising contract as an atypical contract has its own specialty on the character, pattern and type. In this article, its character is a type association contract belonging to the unnamed contract. By the law, it should be adjusted to General Principles of Civil Law, Contract Law and some laws on market regulations such as Anti-unfair Competition Act, Prize Act, Advertisement Regulation Act, Consumer Protection Law, and also according to the objects of different franchise, it is, in several, adjusted to the intellectual property laws like Trademark Act, Patent Law, Writings Law. In addition, the franchising contract, as a special constant contract, has an uncertainty to the future market and larger fulfillment risk, so it requires faith...