What is a commercial franchise?

Commercial franchising (commonly known as franchise chain) refers to the business activities that an enterprise (hereinafter referred to as franchisor) licenses its registered trademarks, enterprise logos, patents, proprietary technologies and other business resources to other operators (hereinafter referred to as franchisors and franchisees) in the form of contracts, and the franchisee conducts business under a unified business model according to the contract and pays franchise fees to the franchisor. Recently, on the Internet and some video software (such as the popular "Tik Tok"), various franchise chain investment projects often appear, many of which praise the bright future and rich profits as advertisements, and also provide so-called business guidance and technical training for free. In view of the advertisement of this franchise chain, people who want to invest must think twice before you act, and don't invest blindly to prevent them from accidentally falling into the false propaganda of the franchise chain and causing economic losses. The following is how to distinguish the fraud of franchise chain (depending on whether the franchisee has the following basic conditions): 1. Franchisors must be enterprises, and other units and individuals may not be franchisees. 2. Does the franchisor have corresponding resources in the franchise chain? 3. The franchisee has a mature business model and experience, and it is also important to provide business guidance, technical support, business training plan, operation manual and training strength for the franchisee. 4. The Franchisor has at least two directly operated stores, and the operating time exceeds 1 year. 5. The franchisor shall record the franchise situation in the relevant state departments. Engaged in commercial franchise activities within the scope of provinces, autonomous regions and municipalities directly under the central government, it shall be filed with the competent commercial department of the people's government of the province, autonomous region or municipality directly under the central government where the franchisor is located; Those who engage in franchising activities across provinces, autonomous regions and municipalities directly under the Central Government shall file with the competent department of commerce of the State Council. The above conditions are the qualifications that franchisees must have to adopt the franchise chain model for business development, and they are also the background conditions that franchisees should first examine before joining the chain model. If the above conditions are not met, that is to say, franchisees do not have the conditions to engage in investment promotion and are suspected of fraud or even fraud, franchisees need to carefully consider joining. If the franchisee fails to carefully examine the contents of his joining, and finds that there is no publicity effect promised by the franchisor, and how to make profits as claimed by the franchisor, the franchisee can use legal weapons to safeguard his legitimate rights and interests and bring a lawsuit to the intermediate people's court where the franchisor is located, demanding the return of his joining fee. According to the relevant laws and regulations, the franchisor (franchisee) can unilaterally terminate the franchise contract within a certain period after the franchise contract is concluded, that is, the so-called cooling-off period, so that the franchisee can get back his franchise fee. Of course, other factors will be considered comprehensively when canceling the contract and asking for a refund of the franchise fee, such as whether you have received technical training, whether you have chosen a store location, whether you have given business guidance, whether you have actually operated, and so on. The specific litigation involves professional legal issues, so it is recommended to find our professional lawyers to defend their rights according to law!