On The Legal Supervision Of The Commercial Franchise

With the development of China's commercial environment and people's investment needs, commercial franchising has provided a straight and fast way to make good us of capital. As a successful business pattern originated from US, the franchising system has embodied its powerful business potential with its fast spreading, low cost and large scale characteristics. In 1987, the international franchising fast food KFC had opened its first chain store in Beijing, ever since then, this business pattern has began a flourishing period in China. But the current franchising market has many problems in China, mainly reflected in serious market frauds, unequal relationship between the main bodies, the immaturity of franchising industrial instruments and etc. The writer believes that all these problems are partly because the current regulatory legal system is not in good condition. In order to set up a good legal environment for the future prosperity of China's franchising business, it is highly recommended to learn some good rules and laws from the experienced countries. In this paper the writer firstly gives a general analyze of the necessity of legal regulation on franchise, then introduces some typical overseas regulations, through comparing the foreign ones and the Chinese rules, the paper analyzes the shortcomings of China's information disclosure rules, franchisee qualification regulations and supporting systems, on top of that, the writer proposes the"full supervision"ideas to protect the commercial franchising market and try to solve the main problems of the defectives of the current franchising legal system.