Things to note before joining and how to protect rights after joining

1. Things to note before joining

1. Register with the National Enterprise Credit Information Disclosure Network or Qixinbao, On websites or apps such as Tianyancha and Shuidi Credit, enter the company name to query the company’s registration status, such as registration time, number of shareholders, subscribed capital and paid-in capital, whether it has a trademark, whether it has a patent, whether it has a domain name, whether it has a domain name, and whether it has a registered capital. Conduct a comprehensive investigation of the company's business affairs, including operating abnormalities, whether it has been subject to administrative penalties, whether it is involved in litigation, etc.;

2. Log in to the unified platform of the Ministry of Commerce's business system - Commercial Franchise Information Management Network, and enter the company Check the name or franchise brand to verify whether the company or franchise brand has been registered for franchising and the specific circumstances of the registration;

3. Log in to the official website of the Trademark Office of the State Intellectual Property Office to verify the company’s trademark registration status , the registration status of the franchise project logo or the registration status of similar trademarks, etc. Since trademarks are core resources in business resources, if infringement occurs due to unclear trademark ownership, not only do you need to stop using the trademark or logo, but you will also face the risk of being sued;

4. Go to the company by yourself You can "sit down" to inspect other franchise stores to see how the franchise store's customer flow, sales volume, and whether it meets expectations. You can also enter the store to check the overall decoration and decoration, etc. Seeing is believing, and you will know better.

2. How to safeguard rights after joining

1. Repentance period (cooling-off period)

Article 12 of the "Commercial Franchise Management Regulations" stipulates: Franchisor The franchisee and the franchisee should agree in the franchise contract that the franchisee may unilaterally terminate the contract within a certain period after the conclusion of the franchise contract. This clause is commonly known as the "cooling off period" clause. According to this clause, the parties to the contract must agree that within a certain period of time the franchisee (franchise) can unilaterally terminate the contract without continuing to perform the obligations stipulated in the contract.

How long is this cooling-off period? In other words, how long does it take after signing the contract to unilaterally terminate the contract and get back the franchise fee? This is not clearly stipulated in the law. In judicial practice, the termination of the contract within 1-4 months is basically regarded as a reasonable period. So can it not be terminated beyond this time? No, if after signing the contract, the franchisee does not receive the training materials provided by the other party, does not participate in the training, does not actually enjoy the other party's services, and does not actually use the other party's business resources, it can also terminate the contract and require the other party to return the franchise. There is a fee, but the longer the delay, the lower the refund rate will be.

2. How to deal with situations such as discovering that the other company has made false publicity or provided false information or concealed facts?

If the other party makes false publicity, provides false information, conceals facts, etc., the franchisee can also unilaterally terminate the contract and require the other party to return the franchise fee. Legal basis: Article 23 of the "Commercial Franchise Management Regulations" The information provided by the franchisor to the franchisee shall be true, accurate and complete, and shall not conceal relevant information or provide false information. If the information provided by the franchisor to the franchisee changes significantly, the franchisor shall promptly notify the franchisee. If the franchisor conceals relevant information or provides false information, the franchisee may terminate the franchise contract.

3. What should I do if the company does not agree to terminate the contract or does not provide a refund after termination?

The franchisee’s right to terminate the contract is statutory and can be exercised unilaterally without the company’s consent. After the franchisee unilaterally terminates the contract, the company often does not cooperate with the refund, but finds various reasons to delay. How should we protect our rights at this time? It is recommended to file a confirmation lawsuit in court as soon as possible: first: confirm that the contract has been terminated; second: ask the other party to return the franchise fee; third: ask the other party to compensate for losses (such as rent loss, decoration loss, material loss, employee wage loss, etc.); Fourth: Require the other party to bear all litigation costs. In order to ensure execution, you can apply to the court for property preservation before filing a lawsuit, and seize and freeze the company's property to prevent the company from transferring property and evading execution.

Of course, if the franchisee does not have the time and energy to conduct investigations or protect rights, he or she can also entrust a lawyer to conduct a business investigation on the proposed franchise project before joining, and the lawyer will issue a project business investigation report. When the legitimate rights and interests are infringed, the franchisee can also You can entrust a lawyer to defend your rights.