On Government Supervision Of Commercial Franchise

Our country’s modern commercial franchising, combined with China’s opening to the outside world, can clearly be seen as business activity. This paper, from the perspective of economic law, first of all sets out the concept and basic features of commercial franchising, analyses it in relation to similar business models, and discusses the necessity of government regulation. Second, it introduces and evaluates the commercial franchise regulation systems of America, Malaysia, Japan and France. Third, it discusses the problems of the current franchising market, the immaturity of franchising industrial instruments, serious market frauds and the unequal relationship between the main bodies, and suggests that the cause of these problems lies with the systems of government regulation, such as qualification, filing and information disclosure. Finally, and in light of the realities of modern-day China, it puts forward the concept of "comprehensive regulation", and some suggestions on the design of the system, so as to optimize the legal environment of our country’s commercial franchising and promote its healthy development.