On The Systems Of Information Disclosure Of Commercial Franchising

Franchising is an important business model in modern market economy, its low cost, high intelligence advantage has made great strides at home and abroad. Information disclosure will help protect the rights of franchisees, implement government regulation and protect the public interest, after the landing in china, Commercial franchise has made rapid development, but it also exist some problems, such as operating confusion and Non-standardized systems. This problems brings some troubles to both the franchisees and the franchisors. At this point, it’s essential to have a sound legal environment. So the franchising legislative is priorities in China. Therefore, our legislative of business franchise focus on the establishment and improvement of information disclosure system. The importance and necessity of the systems of information disclosure for Commercial Franchising has promote national attentions to the relevant legislation. Although extraterritorial legislation on commercial franchising model disclosure vary, but there are quite relevant legislation for our reference. China’s commercial franchising information disclosure system still has many shortcomings, including lack of the special legal norms of commercial franchise disclosure legislation, the contents of the information disclosure for commercial franchising is not sufficient, the relif of the information disclosure for commercial franchising is not comprehensive and so on. In order to promote the healthy development of the market, prevent the franchising fraud, it’s vital to force franchisors to disclose the vital information of investment risks and investment interests, Provide sufficient information and a reasonable time for franchisee to make rational investment decisions. To solve the problems existed in our commercial franchising information disclosure system, it’s better to strengthen the special legislation of our commercial franchise disclosure, enrich the content of the information disclosure system, improve information disclosure remedies, and strive to achieve a balance between the two sides of franchising on their contracting capacity.