Direct Franchise--that is, the franchisor will franchise directly to the franchise applicant. The franchisee who obtains the franchise right establishes franchised outlets and carries out business activities in accordance with the franchise contract, and may not transfer the franchise right again.
Sub-concession (regional concession) - that is, the franchisor will be in the designated area of the exclusive franchise granted to the franchisee, the franchisee can be granted to other applicants, but also by their own in the region to open franchised outlets, engaged in business activities. Article 6 The franchisor must have the following conditions:
(1) an independent legal personality;
(2) a registered trademark, trade name, products, patents and unique, transferable business management technology or know-how, and good business performance for more than one year;
(3) a certain amount of business resources;
(4) the ability to provide long-term business guidance and service to the franchisee (d) have the ability to provide long-term business guidance and services to the licensee. Article 7 The licensee must have the following conditions:
(1) a legally qualified legal person or natural person;
(2) possessing the necessary business resources (capital, sites, talents, etc.);
(3) possessing a certain degree of business management ability. Article 8 The basic rights of the franchisor are:
(1) In order to ensure the unity of the franchising system and the consistency of the quality of products and services, the franchisor has the right to supervise the franchisee's business activities;
(2) It has the right to collect the franchise fee and all kinds of service fees from the franchisee;
(3) It has the right to violate the provisions of the franchising contract, infringe on the franchisor's The franchisor has the right to terminate the franchisee's franchise qualification for any violation of the franchisor's lawful rights and interests and destruction of the franchise system. Article 9 The obligations of the franchisor are:
(1) to grant the franchise to the franchisee and to provide the business symbols and business procedures representing the franchise system;
(2) to provide pre-opening education and training;
(3) to instruct the franchisee to make good preparations for the opening of the store;
(4) to provide long-term business guidance, training and the supply of goods as stipulated in the contract. (d) Provide long-term business guidance, training and supply of goods as stipulated in the contract. Article 10 The basic rights of the franchisee are:
(1) to exercise the rights granted by the franchisor within the scope of the contract;
(2) to obtain the business technology and trade secrets provided by the franchisor;
(3) to obtain the training and guidance provided by the franchisor. Article 11 The obligations of the franchisee are:
(1) to carry out business activities in strict accordance with the standards stipulated in the contract;
(2) to pay royalties and other various fees on time as agreed in the contract;
(3) to safeguard the reputation of the chain system and its unified image;
(4) to accept the guidance and supervision of the franchisor. Article 12 The franchisor shall, at least ten days before the formal signing of the contract, provide in writing to the franchise applicant true basic information about the franchise information. Such information shall at least include: the franchisor's enterprise name, basic situation, business performance, the operation of the franchisee belonging to the franchisee, has been practically proved the franchised outlets investment budget table, the franchise fee and all kinds of fee collection method, provide all kinds of goods and supply of goods conditions and limitations and so on.
Franchise applicants should also be required by the franchisor to truthfully provide information about their ability to operate, including proof of legal qualifications, proof of credit, proof of property rights. Article XIII engaged in franchising activities, must sign a franchise contract. Franchise contract shall include the following contents:
(1) the content, scope, duration and territory of the franchise authorization;
(2) the basic rights and obligations of both parties;
(3) the training and guidance of the franchisee;
(4) the various fees and their payment;
(5) confidentiality clauses;
(6) the liability for breach of contract;
(7) the right of the franchisee to enter into a franchise contract;
(8) the right of the licensee to enter into a franchise contract. p>(vi) Liability for breach of contract;
(vii) Duration, change, renewal, termination of the contract and handling of disputes. Article 14 The franchisor may charge the franchisee the following fees:
Franchise fee: a one-time fee charged by the franchisor when granting the franchise to the franchisee.
Usage fee: a fee paid periodically by the franchisee to the franchisor at a certain standard or percentage in the course of using the franchise.
Guarantee: In order to ensure that the licensee fulfills the franchise contract, the franchisor may require the licensee to deliver a certain amount of guarantee, which will be returned to the licensee after the expiration of the contract.
Other fees: fees charged by the franchisor to the franchisee for services provided to the franchisee under the franchise contract.
The types and amounts of fees to be charged in the preceding paragraph can be agreed upon by both parties in the franchise contract according to the actual situation.