Research On The Information Disclosure System Of Franchisors In Commercial Franchises

The product lies in forming scale,and the benefit also lies in forming scale.Franchising,as one of the operational models for conducting commercial operations,has become a widespread choice for market entities in areas such as service retail due to its ability to achieve maximum scale benefits at the lowest cost.As the main body of the commercial franchise relationship,there is a clear issue of information asymmetry between the franchisor and the franchisee,and the franchisor information disclosure system has played an important role in alleviating information asymmetry.Currently,The regulations on the information disclosure system of franchisors in commercial franchising in China are mainly reflected in the "Regulations on the Administration of Commercial Franchising"(Hereinafter referred to as the "Regulations"),the "Measures for the Administration of Information Disclosure in Commercial Franchising"(hereinafter referred to as the "Measures for the Administration of Information Disclosure"),and the "Guiding Opinions of the Beijing Higher People’s Court on Several Issues Concerning the Application of Law in the Trial of Disputes over Commercial Franchising Contracts" Answers to Several Issues Concerning the Trial of Franchise Contract Disputes by the Shanghai Higher People’s Court.In addition,in the process of formulating the Civil Code of the People’s Republic of China(Hereinafter referred to as the Civil Code),commercial franchising contracts were specified as a special chapter in the contract compilation,attempting to form a civil law level regulation of the franchisor information disclosure system.However,the entire chapter was later deleted.At this point,there have been no new developments or changes in the relevant provisions of the franchisor information disclosure system in China’s commercial franchising,and it is in a stagnant state.However,with the improvement of China’s scientific and technological level and the continuous development of the social economy,the business model of commercial franchising has entered the fields of the Internet and digital economy.As Pei Liang,President of the China Chain Store Association,said,the era of digital franchising has arrived.After summarizing and analyzing 189 cases of the information disclosure system of commercial franchisors in judicial practice,it was found that the overall distribution of cases is concentrated in different regions,involving multiple fields,and there are many cases with the same franchisor as the defendant.Based on the analysis of relevant regulations and judicial practice,summarize the main legislative,judicial,and compliance issues of the franchisor information disclosure system.In terms of legislation,it mainly includes procedural and content provisions,which are specifically reflected in the fact that the information disclosure time does not meet the needs of improving the efficiency of commercial franchising,the lack of unified information disclosure document format regulations,the improper simplification of specific provisions for franchisor information disclosure,and the lack of exemption provisions for information disclosure.In terms of justice,it is mainly reflected in the inconsistent determination by the court of the situation where the franchisor violates the information disclosure system,and there are different judgment results in the same situation.In terms of compliance with the law,the main focus is on the situation where the franchisor fails to comply with the relevant provisions of the information disclosure system,and the franchisor’s information disclosure is not standardized,which has also led to a series of subsequent judicial disputes.Based on this,it is necessary to combine the new situation in the field of commercial franchising in China with current legislative trends,such as the revised and added provisions of the Company Law of the People’s Republic of China(Hereinafter referred to as the "Company Law"),and draw on the regulations of the United States,Australia,and Japan in terms of franchisor information disclosure system,to propose suggestions for improving the franchisor information disclosure system.Specifically,we will start from the following aspects: improving the time regulations for franchisor information disclosure,increasing the baseline for information disclosure time,shortening information disclosure time,and establishing an expert consultation system to meet the needs of improving the efficiency of commercial franchising;Establish a unified information disclosure document format to facilitate the review by the franchisee;Establish exemptions for franchisor information disclosure under specific circumstances,and clarify specific exemptions;Clarify the behavior of the franchisor in violation of the information disclosure system,and enhance the judge’s reasoning in judicial trials;Enhance the franchisor’s emphasis on the information disclosure system in franchising,standardize their specific performance behavior,and enhance their risk prevention capabilities.