Franchise and Arbitration as a Method of Resolving International Franchising Disputes

Franchise as known as a one of effective trade methods, brings reputation and profits for traders in the world, at the same time motivates economy worldwide. In line with the development of international trade, the development of commercial arbitration expresses its considerable role as a settlement method of international trade disputes. So, for issues and disputes arising from international franchising, how does arbitration express its role? The material in this paper is compiled chiefly from personal experience and from the experience of others. The author believes that franchising is little understood in legal circles. This is demonstrated by the various legislative approaches which have been adopted. In many countries, there is simply no law directly applicable to franchising. In this article, the author presents and analyses the basic concepts of franchising which is recognized by the international community in general, the development of franchise and the main role of commercial arbitration in solving problems arising from franchising disputes.