What Are Business Franchises?

A commercial franchise refers to an enterprise (hereinafter referred to as a franchisee) that owns operating resources such as registered trademarks, corporate logos, patents, proprietary technologies, etc., and licenses its operating resources to other operators (hereinafter franchisees) in a contract , The franchisee conducts operations under a unified business model in accordance with the contract and pays franchise operating activities.

Commercial franchise

Right!

Commercial franchise refers to the possession of a registered trademark,

The core of a commercial franchise is the grant and use of intellectual property,

(One)

A commercial franchise system is defined by the franchisor and the

According to Article 3 of the Regulations,

The core of a commercial franchise is the export of intangible assets, registered trademarks,

The "Administrative Regulations" provide more detailed administrative liability provisions for franchiser violations, and also involve criminal liability under certain conditions, while there are fewer provisions for civil liability. Internal civil liability issues between franchisors and franchisees can basically be governed by the general rules of civil law, contract law, tort law, and other relevant provisions on contracting negligence liability, breach of contract liability, and tort liability. # p # Title # e #

In practice, the more complicated issue is the external civil liability of the franchisor and the franchisee, mainly the consumer protection and tort liability issues in the franchisee's business process. In this regard, there are no complete rules and regulations. Article 11 of the Administrative Regulations stipulates that franchisors and franchisees can agree on the protection of consumer rights and liabilities through a franchise contract. This internal agreement has no legal effect on third parties.

It is generally believed that the franchisee is a subject with independent responsibility, so the principle of the franchisor's external civil liability should be determined. The franchisor generally does not need to bear the civil liability of the licensee to a third party. However, if a third party can prove that it believes the franchisee is an agent of the franchisor in good faith and without fault at the time of the transaction, the franchisor should bear the liability to the third party according to the rules of representation agency. If there is a defect in the operating resources licensed by the franchisor, causing damage to a third party, the franchisor and the franchisee shall bear joint and several liabilities according to the common tort rule.