Explanation of the Franchise Contract:
Commercial Franchise Contract:
_ It is a contract concluded between two parties,
the franchisor (the owner of the experimental mark and the grantee).
The purpose of this contract is to exploit the grantee of the trademark of the donor party during a certain period and in specific places, and the donor party supplies the donor with the needs, goods, training and administrative systems associated with this trademark in return for a certain price paid by the grantee. It invests in the donor's brand.
His field: This type of contract is widespread in the field of manufacturing cars, medicines, electrical appliances, restaurants, hotels...etc
_ This contract has been known as the franchise because it requires specialized expertise in intellectual property, commercial obligations and trademark management systems. It requires an integrated legal, financial, administrative and technical system.
Its features:-
1- For the granting party: -
The owner of the trademark benefits from the wide spread of his commercial project.
2- For the party granted to him: -
He benefits from the association of his name with a well-known commercial name, in addition to acquiring more practical, administrative and technical expertise that the awarding party
provides, which is what distinguishes the franchise contract from agency and commercial distribution contracts.
_ And the franchising contract assumes that the party granted to it is always financially and administratively independent from the granting party, so it is not imagined that this contract exists between the holding company and one of its subsidiaries.
_ The granting party shall have the authority to supervise and control the grantee with regard to how to manage and operate the grantee for the commercial project.
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