Franchising, as its name implies, is the behavior that an enterprise licenses its registered trademarks, corporate logos and other resources to other operators. Franchisors and franchisees should sign contracts for the use of these resources, and disputes arising from the business model and franchise fees in the contracts belong to franchise contract disputes. So how to determine the jurisdiction of franchise contract disputes? Bian Xiao will give you detailed answers below.
I. Jurisdiction over disputes over franchise contracts
The franchise contract dispute is essentially a contract dispute. According to the principle stipulated in Article 23 of the Civil Procedure Law, a lawsuit brought due to a contract dispute shall be under the jurisdiction of the people's court of the defendant's domicile or the place where the contract is performed. In practice, the parties often reach an agreement on jurisdiction. If the people's court is legal and effective after examination and does not violate the provisions on exclusive jurisdiction and hierarchical jurisdiction of intellectual property cases (Yangpu District Court in Shanghai and Chaoyang District Court in Beijing), the jurisdiction court may be determined according to the agreement.
Article 23 of the Civil Procedure Law: A lawsuit arising from a contract dispute shall be under the jurisdiction of the people's court of the defendant's domicile or the place where the contract is performed.
Two, what is the franchise contract dispute
Franchise contract disputes refer to disputes arising from contracts in which an enterprise (i.e. franchisor) with registered trademarks, enterprise logos, patents, proprietary technologies and other business resources (intellectual property rights) licenses its business resources to other operators (i.e. franchisees), and the franchisees operate under a unified business model in accordance with the contract and pay franchise fees to the franchisees.
Third, the characteristics of franchising
Franchising should have the following characteristics:
The word franchise is translated from English camp system, which is used to engage in business activities and pay operating expenses to franchisees. Although different countries and organizations have different definitions of franchising, in general, franchising has the following characteristics:
1. Franchise is a contractual relationship between franchisor and franchisee.
2. Franchisor will allow Franchisee to use its own trade name and/or trademark and/or service mark, business know-how, business and technical methods, continuous system and other industrial and/or intellectual property rights.
3. Franchisees invest in their business and own their business.
4. The franchisee shall pay the fees to the franchisor.
5. Franchising is a continuous relationship.
Franchising refers to a contract between franchisor and franchisee.
Department. In this relationship, the franchisee provides or has the obligation to safeguard its interests in technical secrets and employee training in franchise activities; Franchisees are allowed to use trademarks, trade names, corporate image and working procedures. Enterprises owned or controlled by franchisees, but owned or invested by franchisees.
The franchise contract dispute is essentially a contract dispute, and its jurisdiction court is the people's court where the defendant is located. Both parties may also stipulate the jurisdiction court in the contract. Franchisees should pay operating expenses to franchisees, and franchisees authorize franchisees to use their own trademarks and intellectual property rights. They have a contractual continuing relationship.