China -  Chinese law firm

Why is a strong franchising agreement important to a business engaging in overseas franchising?

 (a): Franchising operations are almost entirely within the domain of contract law, and the franchising agreement will provide the framework within which the franchisee will operate. A company that wishes to protect its brand and perceived quality will need to tightly control the actions of its franchisee to maintain compliance with the practices of the franchisor in order to gain the benefits offered by a franchising operation.


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