Franchise contract disputes are essentially contractual disputes. According to the principles, lawsuits filed due to contract disputes shall be under the jurisdiction of the People's Court of the place where the defendant is domiciled or where the contract is performed. The parties often make an agreement on jurisdictional issues. If the People's Court is reviewed to be legal and valid, and does not violate the provisions on exclusive jurisdiction and hierarchical jurisdiction over intellectual property cases (Yangpu District Court in Shanghai, Chaoyang District Court in Beijing), the competent court can be determined in accordance with the agreement. As the name suggests, franchising is an act in which an enterprise licenses its registered trademark, corporate logo and other resources to other operators. The franchisor and the franchisee should sign a contract for the use of these resources. Disputes between the two parties over the business model, franchise fees and other contents in the contract are franchise contract disputes. How is the jurisdiction of franchise contract disputes determined? The editor will give you a detailed answer below.
1. Jurisdiction over franchise contract disputes Franchise contract disputes are essentially contract disputes. According to the principles of Article 23 of the Civil Procedure Law, lawsuits filed due to contract disputes shall be governed by the jurisdiction of the defendant’s domicile or The people's court at the place where the contract is performed shall have jurisdiction. In practice, the parties often make an agreement on jurisdictional issues. If the people's court reviews it as legal and valid, and does not violate the provisions on exclusive jurisdiction and hierarchical jurisdiction over intellectual property cases (Shanghai is the Yangpu District Court, Beijing is the Chaoyang District Court), it can be determined in accordance with the agreement. The competent court. Article 23 of the Civil Procedure Law: Litigation initiated due to contract disputes shall be under the jurisdiction of the People's Court of the place where the defendant is domiciled or where the contract is performed.
2. What is a franchise contract dispute? A franchise contract dispute refers to an enterprise (that is, the franchisor) that owns registered trademarks, corporate logos, patents, proprietary technologies and other business resources (intellectual property rights). Disputes arising from a contract in which the business resources owned are licensed to other operators (i.e. the franchisee), and the franchisee operates under a unified business model in accordance with the contract and pays franchise fees to the franchisor.
3. Characteristics of franchising Franchising should have the following characteristics: The term franchise is translated from English as engaging in business activities under the business system and paying operating fees to the franchisor. Although different countries and organizations have different definitions of franchising, generally speaking, franchising has the following characteristics: 1. Franchising is a contractual relationship between the franchisor and the franchisee. 2. The franchisor will allow the licensee to use its own trade name and/or trademarks and/or service marks, business know-how, business and technical methods, continuous systems and other industrial and/or intellectual property rights. 3. The grantee invests in its business and owns its business. 4. The franchisee needs to pay fees to the franchisor. 5. Franchise is an ongoing relationship. Franchising refers to a contractual relationship between the franchisor and the franchisee. In this relationship, the franchisor provides or is obligated to maintain its interest in the franchise's business activities in areas such as know-how and trained employees; and the franchisee is permitted to use the same equipment owned or controlled by the franchisor. Trademarks, trade names, corporate images, work procedures, etc., but the franchisee owns or invests a considerable part of the business himself. Franchise contract disputes are essentially contractual disputes, and the competent court is the people's court where the defendant is located. Both parties can also agree on the competent court in the contract. The franchisee of a franchise shall pay operating fees to the franchisor, and the franchisor authorizes the franchisee to use its trademarks, intellectual property rights, etc. It is a contractual and ongoing relationship.