The Bi Feng Tang case: What do franchise fees really mean?

By Harry He, AllBright Law Offices

In a franchise business, a franchisor licenses a franchisee to use its registered trademark, corporate logo, patents, proprietary technology and other business resources. The franchisee carries on business according to the standard business model of the franchisor and pays a franchise fee in accordance with a franchise contract.

In practice, however, the parties to a franchise contract often do not fully understand the initial fees, royalties and deposits that are provided for in the contract they have signed. This may trigger disputes.

By analysing a case of this nature, this article attempts to discern the true legal meaning of franchise fees, with a view to facilitating the prevention and settlement of franchise contract disputes.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.



Harry He is a partner of AllBright Law Offices. His main practice areas are foreign direct investment, M&A and labour disputes.




14/F Citigroup Tower, 33 Hua Shan Shi Qiao Road, Pudong, Shanghai

邮编 Postal code: 200120

电子信箱 E-mail:

网址 Website: