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Franchising contract – a modern juridical and economic instrument for business expansion

Author

Listed:
  • Adriana Florina Popa

    (Bucharest Academy of Economic Studies)

  • Andreea Gabriela Ponorîca

    (Bucharest Academy of Economic Studies)

Abstract

Development of trade, as well as its dynamics in the context of globalization, have created the premises of acceleration in the commercial distribution networks expansion, with immediate effects in the sphere of law. Transgression, moreover, was predictable and any legal implication in economics, as well that of the judiciary system in the economy can't be ruled out. Among the commercial agreements, franchising has experienced one of the most spectacular developments of all kinds of business, due to the favorable context in which it developed. In this paper we aim to analyze the essential elements of franchising, based on the legal phenomenon rather than on the economic one. This article also examines the behavior of existing and future entrepreneurs regarding the possibility of implementing this legal instrument. These results are consistent with the hypothesis that, even if, according to the statistics, the franchise contract has successfully imposed itself in the business world, there is enough reticence in adopting it as a development measure.

Suggested Citation

  • Adriana Florina Popa & Andreea Gabriela Ponorîca, 2012. "Franchising contract – a modern juridical and economic instrument for business expansion," Juridical Tribune - Review of Comparative and International Law, Bucharest Academy of Economic Studies, vol. 2(2), pages 31-43, December.
    • Handle: RePEc:asr:journl:v:2:y:2012:i:2:p:31-43
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    More about this item

    Keywords

    contract; franchising; development; business; juridical instrument;
    All these keywords.

    JEL classification:

    • K12 - Law and Economics - - Basic Areas of Law - - - Contract Law

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