1. What are the legal characteristics of franchising?

1. The legal characteristics of franchising are as follows:

(1) Franchising is a relationship between the franchisor and The contractual relationship between the franchisees, that is to say, the relationship between the franchisor and the franchisee exists and is maintained depending on the contract between the two parties;

(2) In franchising, the franchisor and the franchisee There is no tangible asset relationship between the parties, but they are independent legal entities, each of which bears external legal responsibilities independently;

(3) The franchisor has ownership and/or exclusive use of the authorized matters involved in the contract between the two parties. rights, and the franchisee obtains the right to use or exploit the rights and the income rights based on the right of use through the contract;

(4) Authorization in franchising refers to the right to use intangible assets including intellectual property rights or utilization, rather than tangible assets or the right to use them;

(5) The franchisee has the obligation to pay fees to the franchisor in accordance with the contract between the parties;

(6) The franchisee The uniformity required by the franchisor in the contract should be maintained.

2. Legal basis: Article 3 of the "Commercial Franchise Management Regulations"

The term commercial franchise (hereinafter referred to as franchise) in these regulations refers to enterprises with registered trademarks and Enterprises that operate resources such as logos, patents, and proprietary technologies (hereinafter referred to as franchisors) license their operating resources to other operators (hereinafter referred to as franchisees) in the form of a contract. Carry out operations under the business model and pay franchise fees to the franchisor.

Article 31

If trademark licensing or patent licensing is involved in franchise activities, it shall be handled in accordance with the provisions of laws and administrative regulations related to trademarks and patents.

Article 32

Relevant associations, under the guidance of the commerce department of the State Council, shall formulate regulations for franchise activities in accordance with the provisions of these Regulations, strengthen industry self-discipline, and provide services to parties involved in franchise activities. Provide related services.

2. What are the divisions of franchise types?

The divisions of franchise types are as follows:

1. According to capital investment. According to the required capital investment, it can be divided into work-type franchise, business-type franchise and investment-type franchise. A work-based franchise requires only a small investment from the franchisee, and sometimes does not even require a business location. Business franchising generally requires the purchase of goods, equipment and business premises, such as photo printing, laundry, fast food takeout, etc., so it requires a large investment. Investment franchising requires more capital investment, such as restaurants, etc.;

2. According to the transaction form. According to the transaction form, it can be divided into four types: franchising by manufacturers to wholesalers; franchising by manufacturers to retailers, such as oil companies franchising between gas stations; franchising by wholesalers to retailers, such as pharmaceutical companies Franchised pharmaceutical retail stores;

3. According to the nature of the franchisee. According to the nature of franchisees, it can be divided into regional franchise, single franchise and compound franchise. Regional franchising means that a franchisee obtains an exclusive franchise in a certain area, and can operate alone in this area, or sub-franchise. Single franchise means that the franchisee devotes himself entirely to the franchise business and no longer engages in other businesses. Compound franchising means that the franchise rights are purchased by a company that owns multiple franchise stores, but the company itself is not involved in the daily operations of the franchise stores;

4. Franchise business. According to the franchise business, it can be divided into conversion franchise and branch franchise. The former is when franchisees convert existing businesses into franchised businesses, and franchisors often use this method to enter the golden zone. The latter is for franchisees to increase branches through traditional methods, which of course requires more funds.