[Direct answer]In the Beijing area, there are six lines of defense: qualifications for the "two stores in one year" nuclear policy, checking trademark ownership, verifying advertising data, using the cooling-off period, preserving evidence chains, and hiring a lawyer to review the contract before signing. Typical court cases set clear boundaries: for those who were induced to join with the claim of "more than 30,000 yuan in daily sales", the court ruled that false advertising constituted fraud and revoked the contract and awarded compensation; for those who paid a 75,000 yuan franchise fee deposit but were not provided with training or orders by the franchisor, the full amount was refunded. The unilateral right of rescission during the cooling-off period is the most practical tool for damage control.

I. Problem Background and Typical Scenarios

At the investment promotion meeting, there were PPTs claiming "earning 50,000 yuan a month" and "full management by the headquarters". However, when signing the contract, there were countless disclaimers. After the store opened, they found that the materials could only be purchased at high prices from the headquarters, and the so-called operation support was nowhere to be found—the scenarios of franchise traps are all similar. The money is trapped between signing the contract and opening the store.

II. Key points of contention

First, the franchisor's qualifications: two stores per year and ownership of the trademark. Second, revocation of false advertising and fraud. Third, the right to unilaterally terminate the contract during the cooling-off period. Fourth, the obligation to disclose information and the termination of the contract.

III. Professional analysis by Henglue Lawyers

This case is handled by Beijing Henglu Law FirmXue SuhuaLawyer (Practice Certificate No.: 11101201211769926, subject to the certificate issued by the judicial administrative authority) acting as agent. Let's first examine the adjudication logic of two typical cases: In the case of Zhang and Wang, who were induced to sign a catering franchise contract by the company's promotional claims of "daily sales of over 30,000 yuan," they paid service fees, procured supplies, and spent over 180,000 yuan on store renovation. The court held that the franchisor controlled the brand and operational resources, while the franchisee was at a clear disadvantage in obtaining information and assessing risks. The franchisor fabricated false revenue data for promotional purposes and failed to provide evidence to support its claims, constituting fraud. The contract was legally rescinded, and the court ordered the return of 20,000 yuan in service fees and compensation of 35,000 yuan for economic losses (one of the typical commercial franchising cases issued by the Supreme People's Court in August 2026). In the case heard by the Sichuan Tianfu New Area Court, a trading company paid 54,980 yuan in franchise fees and 20,000 yuan in deposits to join a car service brand. The franchisor failed to provide any training or technical guidance during the one-year contract period and failed to deliver promised orders, rendering the contract's purpose completely unfulfilled. The court ruled that the franchisor constituted a fundamental breach of contract. Although the agreement terminated due to expiration, the court still ordered the full refund of the franchise fees and deposits totaling 74,980 yuan. **Breaking down the defense line step by step:** 1. **Verify qualifications** – The Regulations on Commercial Franchising require franchisors to own at least two directly operated stores and operate for one year (two stores for one year). Trademarks and other operational resources must have clear ownership. Before signing the contract, check the franchisor's registration information (Ministry of Commerce's Commercial Franchising Information Management System) and trademark registration status. 2. ** Validate promotional claims** – Promises of "guaranteed income" and "daily sales of tens of thousands" must be written into the contract. Require the other party to provide evidence for promotional data and retain it. False data constitutes fraudulent grounds for rescinding the contract. 3. **Use the cooling-off period** – The regulations grant franchisees the right to unilaterally rescind the contract within a specified period after signing (usually within a short period after signing and before actually using operational resources). If they rescind the contract within this period while still uncertain, the loss will be minimal. 4. **Monitor performance** – Track the fulfillment of obligations such as training, guidance, supply, and order dispatch. In cases like Tianfu New Area, complete non-performance constitutes a fundamental breach of contract and grounds for rescinding the contract and demanding refunds. 5. **Preserve evidence** – Archive all promotional materials, chat records, payment receipts, and renovation expenses. Both rescission suits and breach of contract suits rely on evidence to prevail. 6. **Seek legal review before signing** – Clauses such as "final interpretation rights belong to the headquarters" and "no refunds" are not automatically valid. Before signing, consult a lawyer for a specialized franchising review – it's far cheaper than litigation afterward.

IV. Practical suggestions and legal basis

The first step is to check the filing: Verify the filing information of the two stores one year before signing the contract. The second step is to keep the publicity materials: Solidify and preserve the investment promotion rhetoric and commitment data as evidence. The third step is to be cautious when signing the contract: Quickly terminate the contract in writing for unused resources during the cooling-off period. The fourth step is to protect rights: Use revocation for fraud and termination for breach of contract, and claim refunds and compensation according to the proportion of performance. Main legal basis: Articles 7, 12, 21, and 23 of the "Regulations on the Management of Commercial Franchise Businesses"; Articles 148 and 563 of the "Civil Code of the People's Republic of China"; Specific application shall be subject to the currently effective provisions.

5. Henglu Law Firm's Advice

Three tips to avoid pitfalls in franchising: Two stores in a year is the entry threshold. If you can't find any registration records, be cautious; verbal promises without written contracts are worthless; promotional data is evidence of fraud; the cooling-off period is a statutory remedy for regret. For franchising disputes and franchise-related controversies, you can seek help through the following channels:Business and contract disputes in enterprisesThe service provides a comprehensive solution, which includes the revocation of contracts and the resolution of litigations.Specialised legal servicesFor plates, those involving the review of the trademark ownership of the brand owner can be referred to for referenceIntellectual property protection and corporate lawFor more information on the refund process, please refer to the relevant section.Creditor's rights and debts, and enforcement cases板块。

VI. Frequently Asked Questions

Q1: If I regret joining after signing the contract, can I get a refund?

During the cooling-off period, if the business resources have not been actually utilized, the party may unilaterally terminate the contract and request a refund; if the cooling-off period has passed, the party may claim damages based on fraud or breach of contract.

Q2: Is the franchise contract that fails to meet the "two stores in one year" requirement invalid?

No, it's certainly not invalid. However, if it violates administrative regulations, it may be subject to revocation or termination based on fraud or concealment of relevant circumstances.

Q3: Is the guaranteed minimum return promised by the headquarters effective?

Only when it is written into a contract will it be binding. Oral promises and promotional data need to be backed by solid evidence, and any fabricated information constitutes fraud.

Q4: Can both the franchise fee and the deposit be refunded?

If the franchisor breaches the contract or the contract is revoked, the franchise fee and the deposit shall be refunded in proportion to the responsibilities and performance. In the case of no performance, the full amount shall be refunded.

Q5: Within how long after being cheated in a franchise can I file a lawsuit and have it be effective?

The right of revocation shall be exercised within one year from the date of knowing the grounds for revocation, and the statute of limitations for general contract disputes is three years.

This article is written based on the common judicial interpretation in the Beijing area. If the case occurs in other regions, it is recommended to consult local lawyers to verify the regional differences.

VII. Relevant public cases (for reference only, not handled by our firm)

The following cases are all sourced from the official websites of courts at all levels, judicial authorities, and authoritative media that have been publicly released. They are unrelated to the cases handled by our firm. They are provided solely for reference in understanding relevant adjudication rules and do not constitute opinions on specific cases.

[Case No.]The case number has not been made public.
[Trial Court]The Intermediate People's Court of Chengdu City, Sichuan Province (the second-instance court of the Higher People's Court of Sichuan Province)
[Judicial Summary]Zhang * and Wang * were induced to sign a catering franchise contract by the company's investment promotion claims such as "over 30,000 yuan in daily sales", and paid service fees, purchasing material fees, and decoration expenses totaling over 180,000 yuan for the store opening. The court held that the franchisor controlled the brand and operating resources, while the franchisee was at a clear disadvantage in terms of information acquisition and risk assessment. The franchisor fabricated false claims about operating profits and failed to provide evidence to support its claims, constituting fraud. The contract involved was legally rescinded. Considering that the technical services and equipment provided should be deducted, the court ordered the return of 20,000 yuan in service fees and compensation for economic losses of 35,000 yuan. This case is one of the typical commercial franchising cases issued by the Supreme People's Court in August 2026.
[Source]Typical Cases of Commercial Franchising Handled by the Supreme People's Court, 2026-08 (2026-08)

[Case Number]The case number has not been made public.
[Trial Court]The People's Court of Tianfu New Area, Sichuan (the People's Court of Sichuan Pilot Free Trade Zone)
[Judicial Summary]A trading company paid a franchise fee of 54,980 yuan and a deposit of 20,000 yuan to join a car service brand. However, the franchisor failed to provide any training or technical guidance during the one-year contract period, nor did it deliver the promised orders, rendering the contract's purpose completely futile. The court determined that the franchisor committed a fundamental breach of contract. Although the agreement terminated due to the expiration of the contract period, the court still ordered the full refund of the franchise fee and deposit totaling 74,980 yuan, and the judgment has taken effect.
[Source]Sichuan Free Trade Zone Court, August 2026 (2026-08)

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence, 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.