Study On The Legal Problems Of Restrictive Competition Practices In The Commercial Franchise

Franchising is an attractive management pattern. Some commerce legend which is familiar with us such as coca-cola、Disney、KFC、McDonald’s are made according to franchising mode. Many enterprises realized the enterprises scale expansion by franchising. In modern market economy field, the franchising system has the strong vitality. However, franchising started late in china, and it initiates a lot of legal issues while it develop booming. In franchising, the franchiser always restricts the operation of the franchisee in many ways in order to protect their intellectual property or keep the franchising system’s uniformity. The restriction has the necessity of exist. But in real economy life, the franchiser abuse their power to restrict the franchisee in many unnecessary aspects in order to get illegal profit, and that make the franchisee lose their right to choose. How to deal with the restrictive competition practices in franchising is the problem that we must solve now. Currently in our country, the academic research about the restrictive competition practices in commercial franchise is still ongoing, and the legislation control about the practices is not limited. The paper though the analysis of typical behavior of restrictive competition practices in franchising, and make a comparative study of systems of the Unite States and the European Union, and then put forward some proposals on how to improve the statute about restrictive competition practices in franchising.This paper is divided into four sections. In section one, it introduces the restrictive competition practices in franchising. First, according to the basic theory of the franchising analyses the rationality of the restrictive competition practices and the need to improve relevant legislation. In section two, it introduces and analysis of a number of typical restrictive competition practices, including restrict the resale price, tying acts, the regional restrictions, grant-bank provisions and non-compete. In section three, it makes a comparative study of regulations in the United States and the European Union, and takes a cue. In section four, it analysis our country’s law system situation of restrictive competition practices in franchising and improve the proposed legislation.