The Termination Of Commercial Franchise Contract

With the development of our country’s market-oriented economy, franchisemodel has crowded into all walks of life, and it has been very useful. Franchisecontract is deem to the fridge of the franchise model, if it was terminated, it willimpair the interest balance of the contract parties and the common.First of all, this essay tries to define the legal characteristic of franchise contractbeginning with the franchise notion, with a thought that the franchise contract is theconsensus between two equal parties, embodying the principle of autonomy of will.The right of franchise meaning a bundle of intellectual property is the key of thecontent of franchise contract, including trademark rights, patent rights, secret rights,copyrights, and the right of trade dress. What’s more, the essay by using the notion oftrade dress, tries to authorize a right for it due to its identifying and no function. Thepurpose is to protect interest of a franchisor, who has contributed a lat of money, labor,and material, or the trade dress has the creative characteristic of identifying andinfamousness. Then, the essay elaborates the goal of franchise contract termination bythe theory of interest balance which is of great importance. In accordance with thecontract law and intellectual property law, this essay descript the interest balance offranchisor, franchisee and the common..Secondly, the essay interprets the introspective problem and compensationproblem in contract termination subject to the ordinary contract theory. Then, onground of the reason of contract termination and the particularity of franchise contract,the essay does a typological research on franchise contract, and elaborates the agreedtermination, statutory termination and franchisor termination, franchisee termination.At the same time, this makes a detail statement of four topics about expense returning,goods rejecting, damage and protect of intellectual property after the contracttermination, and defines the franchising fee. After dissolving the contract, partiesshould perform obligation in good faith, for each other’s legal interest. Whileprotecting the intellectual property of franchisor, franchisee should be protected equally, and should efficiently balance two interests subject to law or agreement.Inferring to the different circumstance of termination right rescinding, this elaboratesfour topics about no exercise beyond limitation, right losing, abandoning, andamending.Thirdly, the essay makes a special statement about cooling-off period anddisclosed information. By comparing research, it is not only have a furtherunderstanding of the cooling-off period and disclosed information, but also find a lotof shortcomings, as unclear cooling-off period, imperfect disclosed information,lacked practice, single starting time and so on.At last, the essay makes a conclusion, gives eights advices on franchise contracttermination, for instance, make franchise laws, admit electronic contract, elaborate thecourse of contract termination, perfect cool-off period or disclose information,strengthen supporting measures, and so on, in order to form a advanced and scientificfranchise system.