[Direct answer]In the Beijing area, how can one protect their rights when the headquarters fails to fulfill its commitment to regional protection? This is a practical issue of widespread concern among parties involved. According to the Contracts Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021) and the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021 and effective January 1, 2022), when handling such matters, one should focus on the core elements and evidence, and assert rights in accordance with the law. Whether a favorable outcome can be achieved depends on the clarity of the facts, the adequacy of the evidence, and the choice of legal procedures, rather than the promise of results. It is recommended to sort out materials and fix key evidence as soon as possible, and to develop a plan with the assistance of a professional lawyer to avoid losing rights due to exceeding the statutory time limit or insufficient evidence. For more details, please refer to the following link:Business and commercial legal services.

I. Problem background and typical scenarios

How to protect one's rights when the regional protection promised by the headquarters fails to materialize? Such demands are also quite common in the Beijing area. When handling such cases, it involves both substantive rights and procedural choices. In light of this, we should take the following measures:Contract dispute legal servicesBased on my practical experience, I suggest that the parties first clarify their legal relationships before deciding on the path of protecting their rights or negotiating with the other party.

II. Key points of dispute

The disputes in such cases often focus on three points: first, the validity and establishment of the contract, and whether the subject's qualifications and expressions of intent are genuine; second, the performance and determination of breach of contract, who constitutes a breach of contract and the degree of the breach; third, the calculation of liability and losses, the adjustment of the breach of contract penalty, and foreseeable rules. Each of these points requires supporting evidence in writing.

III. Professional analysis by Hengluo Lawyers

Based on Henglu Law Firm's practical observations in handling commercial contracts, many enterprises lose lawsuits due to vague contract terms or insufficient evidence of contract performance. Lawyers usually recommend that major contracts be drafted or reviewed by lawyers to clarify breach of contract and jurisdiction; that email, receipt, and reconciliation records be fully preserved during the performance process; and that a letter be sent and a preservation application be filed in a timely manner in the event of a breach of contract to prevent the other party from transferring assets.

IV. Practical suggestions and legal basis

The legal basis mainly includes the provisions on the conclusion, effectiveness, performance, breach of contract and termination of contracts in the Contract Chapter of the Civil Code of the People's Republic of China (effective January 1, 2021) (starting from Article 463); the provisions on shareholders and transactions in the Company Law of the People's Republic of China (amended on December 29, 2023 and effective July 1, 2024); and the provisions on jurisdiction and preservation in the Civil Procedure Law of the People's Republic of China (amended on December 24, 2021). Practical suggestions: Review the subject and creditworthiness before signing the contract; specify the subject matter, payment and breach of contract in the clauses; fix the evidence of performance and communication when disputes arise; and apply for property preservation in a timely manner. For debt recovery, it can be combined with other legal provisions.Creditor-debtor relations and enforcement case servicesAdvance.

5. Henglu Law Firm's Reminder

In commercial contracts, the provisions and evidence determine the outcome of the dispute. There are three key points: review the other party's creditworthiness and performance ability before signing the contract; ensure that the provisions clearly specify the subject matter, payment, breach of contract, and jurisdiction; and retain communication and delivery receipts during the performance of the contract. If a dispute arises, take prompt measures to preserve evidence. If professional support is needed, you can seek assistance from relevant professionals or institutions.Special services and other case servicesThe docking team.

In commercial contracts, the provisions and evidence determine the outcome of the dispute. It is recommended to review the other party's creditworthiness and performance capability before signing the contract. For major contracts, it is advisable to have a lawyer draft or review the contract to clarify the subject matter, payment terms, breach of contract provisions, and jurisdiction clauses. During the performance of the contract, it is necessary to retain communication and delivery records, and promptly send a letter of default and apply for preservation measures if a breach of contract occurs. The focus of the dispute often lies in the validity of the contract, who constitutes a breach of contract, and the calculation of losses. The evidence should be organized around three points: the establishment of the contract, the performance of the contract, and the breach of contract. Hiring a lawyer can systematically sort out the contract and performance evidence, evaluate the litigation or arbitration path and cost-benefit ratio, and avoid the risk of losing the case due to vague contract provisions or insufficient evidence of performance. For cases where the agreed penalty for breach of contract is too high or too low, the court or arbitration institution may adjust it according to law. The claimant should prepare evidence of actual losses to counter the defendant's possible defense of reduction, ensuring that the compensation request is supported.

VI. Frequently Asked Questions

Q1: The protection of the business district is only a verbal promise. Can we ask the headquarters to reduce the franchise fee?

It's difficult to claim independently based on verbal promises, but there's still room for action. If investment promotion materials, WeChat messages, or audio recordings can prove that regional protection constitutes part of the contract, the franchisee can require the headquarters to stop granting authorizations in the protected area and compensate for the losses caused by diversion of customers in accordance with Article 577 of the Civil Code of the People's Republic of China (effective January 1, 2021). However, if there are only vague verbal statements, the franchisee can generally only claim breach of contract under Article 500 and demand a partial refund of the franchise fee. If the contract specifies the exclusive business district scope, it's easier to claim breach of contract, and the focus of evidence collection will be on the scope definition.

Q2: To prove that a second store has been opened in the same area, what on-site materials should be photographed?

There are five sets of materials that need to be fixed: First, the regional or business district clauses in the franchise contract; Second, the investment promotion letter, promotional leaflets, and WeChat records; Third, the storefront photos, business licenses, and opening dates of the new store; Fourth, the map distance measurement screenshots and the information of stores in the same area on the takeout platform; Fifth, the comparison table of the decline in their own business volume before and after. When taking photos, the time and location should be recorded, and it is best to add a time stamp or have it notarized. The distance and business district scope are the focus of the dispute. If necessary, the court can be applied for on-site inspection, and the inspection conclusion will directly affect the scope of protection.

Q3: For claims arising from the illegal occupation of land, should the attorney's fees be negotiated on a per-case basis or on a proportional basis?

Both methods are acceptable, depending on the request structure. The acceptance fee is calculated in accordance with Article 13 (1) of the "Measures for the Payment of Litigation Costs" (implemented on April 1, 2007) and accumulated in stages based on the amount of the dispute. For requests involving an amount of less than 10,000 yuan, the fee is 50 yuan per case. The attorney's fee is negotiated in accordance with the "Measures for the Management of Lawyer's Service Fees" (implemented on April 1, 2007), and the maximum risk-sharing fee shall not exceed 30% of the subject matter amount. Regional protection disputes often involve termination of contracts and refunds of franchise fees. How the litigation requests are combined will directly affect the cost base, so it is advisable to first estimate the costs before finalizing the plan.

Q4: After the new store opens, what is the statute of limitations for claiming breach of contract damages?

Claims for breach of contract compensation are subject to a three-year statute of limitations, starting from the date when the headquarters authorizes otherwise. This is in accordance with Article 188 of the Civil Code of the People's Republic of China (effective January 1, 2021). If a claim for contract termination is also made, the right to terminate the contract must be exercised within one year from the date when the party becomes aware of the grounds for termination, in accordance with Article 564. New store openings often attract continuous traffic, and losses accumulate daily. Delaying in obtaining evidence may make it difficult to prove later losses. Therefore, it is necessary to promptly fix the evidence of store opening and operation once the situation is discovered.

Q5: What's the first step to get the certificate at the new store's entrance today?

Today, I will first do three things: First, I will go to the new store to take photos of the storefront, signboard, business license, and opening poster, and record the shooting time and location; Second, I will use mapping software to measure the straight-line distance to my own store, and extract the information of stores in the same area on takeout and group-buying platforms and add a timestamp; Third, I will send a written objection letter to the headquarters, requesting an explanation of the authorization situation. To avoid conflicts with the other party at the scene, it is necessary to have a notary accompany me if necessary. The objection letter should clearly state the scope of the protected area and the specific stores that are required to stop authorization.

The above Q&A is mainly based on judicial practices in the Beijing area. There may be differences in the adjudication opinions in different regions. It is recommended to consult a professional lawyer based on the specific circumstances of the case.

If you are facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the relevant evidence materials to avoid missing the statutory time limit.Business and commercial legal services·Beijing Henglu Law Firm

Disclaimer: This article is compiled based on the current effective laws and regulations and public adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. In case of disputes, please consult a practicing lawyer in time.