Comparative Legal and Economic Analysis of Franchising

Absztrakt

Franchising is a business model that has been converting dozens of
intangible assets into tangible in the history of mankind. Thus, nowadays it by
itself covers a wide range of institutional aspects of law and economics.
Besides, a franchise runs according to Nash’s Equilibrium theory. A player can
achieve the desired outcome by not deviating from their initial strategy. For this
purpose, the franchisor provides an amount of assistance to the franchisee in
starting and managing the business activities.
De facto, principles of equality are slightly different for franchise contracts.
This is because the results of the contract cannot be achieved without the strict
supervision and advice of the license holder.
Therefore, this short comparative research has considered legal and business
issues relating to franchise, including the main contract law requirements, the
disclosure obligation, patent protection, vertical restraints, and the general
economic outcome of franchising in some countries.