International Franchising Franchisor Liability

As a low-cost, high-speed and intelligent expanding mean and mode of operation, franchise not only offer generous profits and returns, but also serve as a significant mode of operation which play a vital role in the economy of the world, hailed as "so far the most successful marketing mode". According to the Concessions we have committed when entering WTO, China canceled the limit to franchise in December 11, 2004, which has provided the unprecedented opportunity to the international franchise China will develop quickly and possess the biggest market space.Franchise is in full flourish in our country nowadays, in the contrast, the correlative theory and research fall behind with few systematic researches on the franchisor's liability. The franchisor's liability is the core of reasonable settlements of disputes and healthy growth of franchise. However, the law regarding the franchise is far from perfection. This thesis based on the analysis of legal relation within the franchise and uses the legislation and cases on the international level for reference. It defines the franchisor's liability from the internal and external perspective and aims at the legal status quo putting forward a scheme of constructing the franchisor's liability.This thesis will explore franchisor's liability in four parts as following:Part I, Summary of the international franchise. This part begins with the definition and legal characteristics of the franchise. The legal relation of the franchise is the cornerstone of the franchisor's liability. This part focuses on the three elements, namely subject, object and content of the legal relation of the franchise.Part II, the Franchisor's Internal liability. Due to different objects, the internal franchisor's liability includes the liability to the potential franchisee and the liability to the franchisee. Because of the weak position, potential franchisee falls into frequently the special trap. Franchisor should take the liability of the fault in negotiating .This part focus on the liability of the franchisor's information disclosure and discusses the reasons and Manifestation of the liability of information disclosure to potential franchisee by referring to the American...