Usually, in order to ensure the operating interests of franchise stores, franchise headquarters will have a business circle guarantee, that is, no more branches will be opened within a business circle. Therefore, franchisees must be very clear about the scope of the business circle. However, the common situation is that the headquarters is not far from the business circle, and when the store is opened again, it affects the business of the original franchise stores and causes protests. When signing the contract, it should be stated that the headquarters shall not develop another brand with exactly the same business content.

In the general franchise contract, the headquarters will require franchisees to purchase goods from the headquarters, and they are not allowed to purchase goods privately. This is often part of many disputes between headquarters and franchise stores. Because franchisees often think that the supply price of headquarters is high, they purchase from abroad on their own. However, based on the consistency of the quality of the chain system, the headquarters had to ask the franchise stores to purchase from the headquarters in a unified way, which led to disputes.