The Franchise Contract Legal Risk Control Research

From the root of the word, Franchise was derived from the French, which is a privilege of the franchisor, also as known as the franchise chain, franchise business and so on. The earliest form of practice in franchise was in the United States, which has gradually become a new modern marketing business model, with the unique operating mechanism, scale, low cost expansion way. Since the 1980’s, Franchise was introduced into China as a mode of modern market economy development of the scale of the business and management, which fully integrated the modern market economy and business knowledge domain, become the most important commercial development model in the era of knowledge economy, showing a strong vitality. But because of lack of knowledge and experience in many domestic franchise enterprises, meanwhile, the market was in low stage and immature, necessary legal support is insufficient, in a word, the related legislation is lagging behind, there wasn’t special provision to explain the franchise in laws and regulations, which has a great influence on the development in Franchise.This paper quoted the United States economist Paul Rubin’s views and research methods, research the franchising contract from the organizational structure and mode of commercial, which claims a franchise contract is different from market contract but close to the unique form of market contract, Comprehensively discusses the legal issues and risk prevention.in franchise contract. On the basis of the study on many associations of governments, the paper defined the connotation of the franchise, made a specific analysis for the special contract, discussed the legal characteristics, legislation status and the difference between the other business contract; introduced the franchise contract structure and risk distribution, respectively analyzed the different rights and obligations of the contract from the franchisor and franchisee. From the aspect of the franchisor, cited the legal risk sources and risk prevention measures, including the intact process of the contract, finally, this paper analyzed the present franchise mode, introduced some successful experience about the franchise contract in some countries and regions, and put forward some legal thinking in franchise.This paper tries to make a comparative study on franchise law at home and abroad, combined with the legal work experience, from a clothing company perspective, and analyzed the legal risk and risk prevention for the franchisor, so as to help the franchisor to save their rights.