Termination of franchise contract

With technological developments increasing manufacture, as a result of the competition in the markets, manufacturers aim to deliver these products and services to large consumer audiences. With the impact of globalization and increasing advertising activities, consumers have also begun to demand that well-known goods and services be offered to them wherever they are. When old model release methods became insufficient for manufacturers' goals and consumers' demands, new release methods were needed and the franchising system emerged for this reason. Franchising is a modern distribution method based on vertical integration, in which the release of goods and services occurs continuously and regularly and covers the entire manufacturing, marketing and distribution processes. The entrepreneur, called the franchisee, is legally included in the franchisor's previously proven system with the franchise agreement. With the inclusion of the Franchisee in the system, the Franchiser grants the Franchisee the authority to use the intangible rights it owns, such as the brand, trade name, and know-how, in exchange for a certain fee. The Franchisee undertakes to place the Franchiser's goods or services on the market, solely on its own behalf and account, within the framework of the Franchiser's instructions. Franchise agreement is a type of contract that does not have its own regulation in the law and therefore is included in the group of anonymous contracts within the scope of Turkish Code of Obligations. Since there is no specific legal regulation of its own, the provisions regarding franchise agreements, such as agency, power of attorney, service, sole dealer, license, know-how, ordinary partnership, etc., are applied by analogy to the extent that they are appropriate to their nature, in accordance with the opinions in the doctrine and the decisions of the Supreme Court. In this study, the difference of the Franchise contract, which is a contract belonging to a widely preferred release method today, from other similar contracts has been revealed and the elements of the different contracts included in it have been tried to draw attention. Thus, it is aimed to evaluate when and in what way this anonymous contract will end and what the consequences will be for the parties to the contract after its termination.