Laws Regulating Franchise Business in Different Jurisdictions

  • Eshetu Yadeta Temesgen
Keywords: Business, contract, franchise, royal


In franchise business the franchisor allows the franchisee to use its trade mark, trade name, logos, industrial designs, symbols, emblems and designations in return for royalty related payments. In this rapidly expanding form of doing business, different jurisdictions regulate it differently: by enacting franchise specific regulations; developing court practices or through general contracts provision that protect. Such regulations are primarily meant to protect the franchisee from the information asymmetry and financial and technical power of franchisor. Franchise business regulations and general contract provisions jointly regulate contemporary national and international franchise business.