Concept and historical background of franchise contract and comparing it with commercial agency

In spite of similarities between franchise as a contract and agency, there are differences between them which have theoretical and practical aspects. In this paper we are discussing this similarities and differences from a comparative perspective. In many of countries, the commercial agency has regulated but the franchise contract has not this base. Because of this, using statutes about agency for resolving or analyze of problems arising from or for franchise is inevitable. This practice could endanger the rights of the parties of franchise contract. Among other things, the relationship between the franchisee and the original is not a fiduciary relationship. The franchisee does not act on behalf of the franchisor and has the right to exercise any proprietary possessions. In addition, the subject matter, obligations, degree of independence and responsibility towards third parties are different in these two contracts. In fact, the franchise contract is not compatible with the commercial agency contract and has its own nature and effects.