Direct franchising-that is, the franchisor directly grants the franchise right to the franchisor. The franchisee who has obtained the franchise right shall set up franchise outlets to carry out business activities in accordance with the franchise contract, and shall not transfer the franchise right again.
Sub-franchising (regional franchising)-that is, the franchisor grants the exclusive franchise in the designated area to the franchisee, and the franchisee can grant the franchise to other applicants, or set up its own franchise outlets in the area to engage in business activities. Article 6 A franchisee must meet the following conditions:
(1) Having the qualification of an independent legal person;
(2) Having registered trademarks, trade names, products, patents and unique and teachable management techniques or know-how, and having good business performance for more than one year;
(3) Having certain business resources;
(4) Having the ability to provide long-term business guidance and services to franchisees. Article 7 A franchisee must meet the following conditions:
(a) a legal person or natural person with legal qualifications;
(2) Having necessary business resources (funds, venues, talents, etc.). );
(3) Having certain business management capabilities. Article 8 The basic rights of franchisers are:
(a) in order to ensure the unity of the franchise system and the consistency of product and service quality, the franchisor has the right to supervise the franchisee's business activities;
(2) Have the right to collect the franchise fee and various service fees from the franchisee;
(3) The franchisor has the right to terminate the franchisee's franchise qualification for acts that violate the franchise contract, infringe upon the legitimate rights and interests of the franchisor and undermine the franchise system. Article 9 The obligations of the franchisor are:
(1) Granting the franchise right to the franchisee for use, and providing the operating signs and procedures representing the franchise system;
(two) to provide education and training before opening;
(three) to guide the franchisee to prepare for opening a store;
(four) to provide long-term business guidance, training and material supply as stipulated in the contract. Article 10 The basic rights of a franchisee are:
(1) exercising the rights granted by the franchisor within the scope stipulated in the contract;
(two) the business technology and business secrets provided by the franchisee;
(3) Obtaining the training and guidance provided by the franchisor. Article 11 The obligations of the franchisee are:
(a) to carry out business activities in strict accordance with the standards stipulated in the contract;
(two) according to the contract agreed to pay royalties and other fees on time;
(three) to maintain the reputation and unified image of the chain system;
(4) Accept the guidance and supervision of the franchisor. Article 12 The franchisor shall provide the franchisor with the true basic information of franchising in writing at least 10 days before the contract is formally signed. These materials should at least include: the franchisor's enterprise name, basic information, business performance, the franchisee's business situation, the investment budget table of franchise outlets that has been proved by practice, the collection method of franchise fees and various fees, and the conditions and restrictions for providing various commodities and goods.
The franchising applicant shall also truthfully provide information on its own business ability according to the requirements of the franchisor, including legal qualification certificate, credit certificate, property right certificate, etc. Thirteenth franchise activities, franchise contracts must be signed. A franchise contract shall include the following contents:
(a) the content, scope, duration and area of the franchise authorization;
(2) The basic rights and obligations of both parties;
(3) Training and guidance for franchisees;
(4) Various fees and their payment methods;
(5) Confidentiality clauses;
(6) Liability for breach of contract;
(7) Term, modification, renewal, termination and dispute settlement of the contract. Article 14 A 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.
Royalty fee: the fee that the franchisee regularly pays to the franchisor according to a certain standard or proportion in the process of using the franchise.
Security deposit: In order to ensure the franchisee to perform the franchise contract, the franchisor may require the franchisee to pay a certain security deposit and return it to the franchisee upon expiration of the contract.
Other expenses: the fees charged by the franchisee for providing relevant services to the franchisee according to the franchise contract.
The types and amounts of fees listed in the preceding paragraph may be agreed in the franchise contract according to the actual situation.