Franchise is a trading activity in which a franchisor allow a franchisee to trade a product/service basing on business methods related to his/her trademark and take control of such franchisee’s business (Definition of Commercial Law)
Conditions for franchising:
- Conditions of franchisor
+ Business system that franchisor intends to assign has been operated for one year.
+ Franchisor has already registered the frachise to competent body
+ Goods, services that franchisor plans to assign are not categorized as forbidded-to-franchise objects
- Conditions for franchisee
+ Franchisee has business registration certificate matched with franchising object
Content of Franchise agreement:
- Content of commercial rights
- Rights, obligations of franchisor
- Rights, obligations of franchisee
- Franchise price, periodic fees and methods of payment
- Effect period of agreement
- Extending, terminating agreement and resolving disputes
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Franchise registration service
