Abstract
A franchise contract is one of the contracts that are usually important after the emergence and registration of property rights and, in particular, after the development of trademark rights. A franchise contract is a contract concluded between the franchisor as the owner of intellectual property rights and franchisee. In other words, the franchisee usually uses trademark rights and sometimes intellectual property rights owned by franchiser that are limited in time. In the franchise contract, there is a right to implement a franchising business that runs within the network (this method includes allowing for the use of intellectual property rights and technical know-how). The contract has detailed terms and is closely related to intellectual property rights and competition rights. The franchise must be distinguished from the distribution agreement, the commercial representation and the license. According to this agreement, the franchisee enters the franchise network and is committed to using the franchisor business methods and substitute payment, royalties and other periodic payments
Highlights
1) Problem statementMaintaining a position in the market, especially among consumers, and staying ahead of commercial competitors requires the supply of high quality or low-cost goods or services
Franchise is a way of developing business and increasing the scope and volume of activity and, profit, which takes place in the form of a contract, that is, one of the parties, as the owner of the trade mark that is active in the field of goods, services and production activities, has gained a lot of customers by utilizing the technical knowledge and trade secrets in his field of activity by providing high quality and customers know him, gives the privilege of using this system with the condition of the right to monitor implementation, observance of uniformity by the franchisee, insertion of the trademark on goods and services, and payment of a financial change and the franchisee, who seeks vol 11, no 2
Investment through those who have capital and reputation, enters a network of franchisees, which is under the support of franchiser, combining his capital with franchisor reputation and will start a successful business and will continue and manage a thriving business in the shortest possible time, thereby allowing access to the markets that were previously unreachable due to lack of familiarity with the site
Summary
Maintaining a position in the market, especially among consumers, and staying ahead of commercial competitors requires the supply of high quality or low-cost goods or services. Franchise contracts are used in order to expand the geographical scope of the business domain In this way, the parties to the contract agree to cooperate with each other to continuously carry out the sale of goods or services in the form of a pre-designed system, containing a package of intellectual property rights. The franchisee is limited to one territory under this state of monopoly and does not have the right to create a business unit in another territory, which may be subject to certain goods or certain customers or a specified period of time This monopoly is the result of the contract and the offender breaches the contract. In addition to these two types, we have single franchise, in which the franchisor is only the competitor of the franchisee in a particular domain, but does not have the right to transfer franchises to others
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