EU Perspective of the Legal and Economic Aspects of Franchising

Abstract

The concept of franchising, most often is defined as a method of marketing of goods and services. Certainly this kind of definition is insufficient. Franchising is more than a method of distribution, a specific way of financial depletion of the meaning without an investment of own capital from franchisee. Franchising system of business people give the required experience and access to methods and enable them to get profit from the reputation of the mark which defined reputation. This paper aims to introduce the legal and economic franchising structure with an overview of practice and functionality. It is stated that a regulatory framework comprising harmonized legal systems, is necessary to ensure that businesses can operate across borders efficiently.