Research On Franchisee’s Unilateral Right Of Termination In Commercial Franchise Contracts

Since the 1980 s,the commercial franchise model has gradually entered China’s clothing,food,accommodation,tourism and other business fields.The various types of contract disputes arising during its gradual development and maturity phase were mainly issued by the State Council in 2007.The "Regulations on the Administration of Commercial Franchise"(hereinafter referred to as the "Regulations")are subject to regulatory adjustments,of which Article 12 of the Regulations is a system unique to commercial franchise contracts that grants franchisees the right to enjoy unilateral termination within a certain period of contract signing,It is the main normative basis for protecting franchisee interests from being infringed in the franchise system.At present,legal disputes caused by the termination of franchise contracts are increasing.Among them,the termination of a contract in accordance with Article 12 of the Regulations is the main means for the franchisee to exercise the right to terminate the contract,which is necessary for its research.This article mainly focuses on the in-depth study of the franchise’s unilateral dissolution right in commercial franchise contracts,mainly around Article 12 of the Regulations.The first chapter compares the current status of the franchise’s unilateral right of dissolution in China and abroad,and concludes that China’s current legislative norms of the franchisee’s unilateral right of dissolution are strong in principle and are not conducive to the implementation of the Regulations in dispute resolution.The application of relevant provisions;secondly,to sort out the jurisprudence of unilateral dissolution of franchisees in judicial practice in China,and to summarize the main dispute points in judicial practice of Article 12 of the Regulations;finally,the principle of passing legislative norms is strong.The adverse effects and disputes arising from the vagueness of judicial practice judgment standards demonstrate the necessity of perfecting the relevant system of the franchisee’s unilateral right of termination.The third chapter analyzes the legal effects of the franchisee’s exercise of the unilateral right of termination resulting in the termination of the contract.After the contract is terminated,the relevant rights and obligations are terminated,but for the franchise fees,royalties,security deposits and other franchise expenses that the franchisee bears at the time of signing the contract,different return obligations should be generated according to the nature of the franchise fees.In addition,after the termination of the contract,the franchisor and the franchisee should bear the corresponding post-contract obligations in accordance with the principle of good faith and the commercial risks they should bear.The research in this article is based on the determination of the nature of the franchisee’s unilateral right of termination,the exercise conditions and the analysis of the legal effects of the right to terminate the contract.To resolve disputes in practice with better applicable law.