What should be included in a franchise contract?

Article 1 of the Regulations on the Administration of Commercial Franchises stipulates that to engage in franchise activities, the franchisor and the franchisee shall enter into a franchise contract in writing. The franchise contract shall include the following main contents:

The basic information of the franchisor and the franchisee; ( The content and duration of the franchise; ( the type and amount of franchise fees and the method of payment thereof; ( The specific content and provision methods of business guidance, technical support and business training and other services;  The quality, standard requirements and assurance measures of the products or services; (** and advertising of products or services;  Consumer protection and liability in franchising; Variation, rescission and termination of franchise contracts; Liability for breach of contract; • Dispute resolution; (Other matters agreed between the franchisor and the franchisee.)

According to the provisions of the Regulations on the Administration of Commercial Franchises, to engage in franchise activities, the franchisor and the franchisee shall enter into a franchise contract in writing. The franchise contract shall include the following main contents:

A) the franchisor, the franchisee of the basic information;

B) the content and duration of the franchise;

C) the type of franchise fees, the amount and the method of payment;

4) The specific content and methods of providing services such as business guidance, technical support, and business training;

5) The quality, standard requirements and guarantee measures of the products or services;

6) Advertising of products or services;

7) the protection of consumer rights and interests in franchising and the assumption of liability for compensation;

8) the change, rescission and termination of the franchise contract;

9) Liability for breach of contract;

10) the method of dispute resolution;

11) other matters agreed between the franchisor and the franchisee.

The franchisor and the franchisee shall stipulate in the franchise contract that the franchisee may unilaterally terminate the contract within a certain period of time after the conclusion of the franchise contract.

The franchise term agreed in the franchise contract shall not be less than 3 years. However, this does not apply to the consent of the franchisee. If the franchisor and the franchisee renew the franchise contract, the franchise term shall not be less than 3 years.

A commercial franchise contract refers to a contract in which the franchisor authorizes the franchisee to grant a series of intangible property rights and exclusive rights owned by the franchisor such as trademarks (including service marks), trade names, service marks, patents, technical secrets, and business models owned by the franchisor to the franchisee and the franchisee themselves to make substantial investments in the business entity, and the franchisee pays royalties to the franchisor accordingly.

The franchise contract is an agreement between the parties to the franchise to establish changes or terminate the rights and obligations for the joint operation or termination of the franchise, and is the basis and key to the existence and development of the franchise system. The significance of the franchise contract is to clarify the rights and obligations between the parties, regulate the business behavior of the parties during the existence of the contract, and ensure the legitimate rights and interests of the parties, which is the main basis for resolving disputes between the franchisor and the licensee.

1. Contract Introduction. It mainly states the content of the franchisor's concession, states that the franchisor's trademark is a registered legal trademark, and the intention of this contract;

2. Interpretation of key terms in the contract. Explain the exact full names of some of the abbreviated words below, such as "Party A", "Party B", "Non-Exclusive License", "Franchisor's Logo", "Franchise Business", "Effective Date", "Franchise Store Manager", etc.

3. The main body of the contract. Explain the restrictions on the granting of the concession, its contents, and the time limit, as well as the renewal of the contract;

4. The annex part of the contract. It can usually include the business scope and working procedures of the franchisor's single store, part of the franchisor's manual catalog, franchise design drawings and **, etc.

The franchise contract of the restaurant chain enterprise includes the following aspects:

1. The basic rights of franchisees;

2. The basic obligations of franchisees;

3. The contract shall give a detailed description of various fees and payment methods.

4. Provisions on confidentiality and restriction of competition should be stipulated;

5. The lease term of the store and the sublease right of the headquarters in the franchise, the transfer and the liability for breach of contract.

To sum up, the main contents of the spy operation contract include the introduction of the contract, the explanation of the key words of the contract, the main part of the contract and the fourth part of the annex to the contract. The franchise contract of the chain catering industry includes the basic rights and obligations of the franchisee, the explanation of the cost of the contract, the explanation of the store lease and other issues.

1. Can the contract be unilaterally terminated, if the contract has been terminated?

In accordance with certain conditions can be terminated, franchise in law belongs to the franchise, the signing of the contract needs to comply with the law on franchising, in the case that the franchisee does not actually use the other company's operating resources, according to the provisions of the cooling-off period according to the law to request the termination of the contract and return the franchise fee, this situation to terminate the contract does not constitute a breach of contract.

1. What is a franchise contract.

The franchise contract refers to the business activities in which the enterprise with registered trademarks, corporate logos, patents, proprietary technology and other business resources licenses its business resources to other operators (franchisees) in the form of a contract, and the franchisee carries out business under a unified business model in accordance with the contract and pays the franchise fee to the franchisor. At present, the domestic franchise single-store contract can be roughly divided into four components, the introduction of the contract, the interpretation of the key terms in the contract, the main part of the contract and the annex part of the contract.

2. What clauses should be included in the franchise contract.

The specific content and terms are as follows (Note: This is a franchise contract model as an example, and each sock franchisor can modify it according to its actual needs in actual use. The following statement omits the confirmation of the names, addresses, etc. of both parties before the contract and the signature confirmation at the end of the contract).

a) Contract Introduction.

It mainly states the content of the franchisor's concession, states that the franchisor's trademark is a registered legal trademark, and the intention of this contract;

2) Interpretation of key terms in the contract.

Explain the exact full names of some of the abbreviated words below, such as Party A, Party B, non-exclusive license, franchisor's logo, franchise business, effective date, franchise store manager, etc., commonly used in the contract.

3) The main body of the contract.

The main body of the contract is as follows:

Article 1 Content of the License.

Explain the restrictions on the granting of the concession, its contents, and the time limit, as well as the renewal of the contract;

Article 2 The location of the franchise store.

Explain the specific address and requirements of the franchise store, as well as the methods, procedures, and conditions for changing the address of the franchise store.

Article 3 Licensing fees.

It mainly explains the name, content, amount, specific method of payment and punitive measures for failure to pay the franchise fee that should be paid.

4) Annexes to the contract.

It can usually include the business scope and working procedures of the franchisor's single store, part of the franchisor's manual catalog, franchise design drawings and **, etc.

Third, the franchise contract precautions.

1) The issue of franchise transfer.

1. Without the consent of the franchisor, the franchisee shall not transfer the franchise right to others.

2. The franchisee shall not disclose or allow others to use the business secrets of the franchisor in its possession.

b) the duration of the franchise.

Generally not less than 3 years.

3) The collection of operating expenses for concessions.

In addition to the franchise fee, the franchise can also collect a security deposit.

Characteristics of the franchise contract: 1. Having the qualification of the franchisor is the premise for the franchisor to sign a franchise contract with the franchisee (also known as the franchisee). Second, the core of the imaginary high franchise is the granting of concessions.

Third, the franchise requires the franchisee and the franchisor to have common external characteristics. Fourth, the franchisee must pay the franchisor the corresponding franchise fee (also known as the franchise fee). 【Legal basis】Article 11 of the Regulations on the Administration of Commercial Franchises, to engage in franchise activities, the franchisor and the franchisee shall enter into a franchise contract in writing.

The franchise contract shall include the following main contents: (A) the franchisor, the basic information of the franchisee; B) the content and duration of the franchise; (C) the type and amount of franchise fees and the method of payment; 4) The specific content and methods of providing services such as business guidance, technical support, and business training; (5) The quality, standard requirements and assurance measures of the products or services of the difference; 6) Advertising of products or services; 7) the protection of consumer rights and interests in franchising and the assumption of liability for compensation; 8) the change, rescission and termination of the franchise contract; 9) Liability for breach of contract; 10) the method of dispute resolution; 11) other matters agreed between the franchisor and the franchisee.

Legal analysis: The basic characteristics of a franchise contract that distinguishes it from other contracts are as follows: 1. The franchisor owns (including ownership and control) of the franchise or franchise.

2. The franchisor licenses the above concession as a whole to the franchisee. That is, it is not a transaction on a single intellectual property, but a transaction must be made in the entirety of the compound concession. 3. The franchisor collects royalties.

The franchise contract is a paid contract.

Legal basis: Article 3 of the Regulations of the People's Republic of China on the Administration of Commercial Franchise refers to the business activities of enterprises with registered trademarks, corporate logos, patents, proprietary technology and other business resources, which license their business resources to other operators in the form of contracts, and the franchisee carries out business activities in accordance with the contract in a unified business model, and pays franchise fees to the franchisor.