Franchise Contract in International Business Law

A franchise contract is one of the contracts that are usually important after the emergence and registration of property rights and, in particular, after the development of trademark rights. A franchise contract is a contract concluded between the franchisor as the owner of intellectual property rights and franchisee. In other words, the franchisee usually uses trademark rights and sometimes intellectual property rights owned by franchiser that are limited in time. In the franchise contract, there is a right to implement a franchising business that runs within the network (this method includes allowing for the use of intellectual property rights and technical know-how). The contract has detailed terms and is closely related to intellectual property rights and competition rights. The franchise must be distinguished from the distribution agreement, the commercial representation and the license. According to this agreement, the franchisee enters the franchise network and is committed to using the franchisor business methods and substitute payment, royalties and other periodic payments.