Discussion On The Legal System Of Franchising

While commercial franchise is developing rapidly in China, the resulting legal disputes emerge endlessly. It is necessary to study on the legal problem in the franchising system, for franchise developing healthy and orderly.In this paper, the author analyzes the legal problems of franchise, including the legal standards defined franchise, the standards of franchisor qualification, the disclosure on franchise Information, franchising internal contract disputes and franchise external legal liability.In the first chapter, from the franchise definition proceed with, the author puts forward to three law characteristics as standards of franchise defined.The franchisor qualification is talked about in the second chapter. According to legal provisions and judicial practice, the franchisor’s requirements are divided into the necessary elements and the unnecessary elements. In the face of legislative and judicial separation status, referring to foreign legislation, the author puts forward legislative proposals, such as "abolish the unnecessary elements " and "authorized industry organizations to develop the franchisor qualification standard".In the third chapter, the author makes three recommendations on franchising information disclosure, in response to the present situation that is franchisor incomplete information disclosure and legal consequences unclear.The author talks about the franchising internal contract disputes In the forth chapter.he suggests that "comply with laws and regulations","autonomy" and "fairness and good faith" should be the three principles to correctly handle contradictions among franchisors and franchisees.In the last chapter, the author proposes that franchisor should take responsibility to the third party, unless the third party identify franchisee clearly and franchiser without fault.