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Recently, "Artist Guan Xiaotong and related milk-tea companies were sued" on the hot search, because the franchisee reported that they had paid the franchise fee, only to find that the milk-tea company, Chengdu Naturaly Stay Catering Management Company headquarters, did not have a "commercial franchise license". They don't even bill them.

For a while, "Should artists sell endorsement products" continued to spark heated discussions. So, in this franchise contract dispute, to whom should the franchisee be held accountable? Should Guan Xiaotong take any responsibility for this?

Recently, Lawyer Ge Youshan, Executive Director of JAVY Law Firm, was interviewed by Beijing Radio and Television's "1039 Morning Post" and gave a detailed interpretation of the incident.

The company involved said that Guan Xiaotong did not participate in operation and management

After the incident, "Chengdu Naturaly Stay Catering Management Company" stated that "Guan Xiaotong is not the subject of the contract, nor does he participate in the company's operation and management."

Subsequently, Guan Xiaotong Studio also forwarded this statement, and added that it has entrusted a lawyer to collect evidence against the personal attacks and defamatory remarks caused by the information spread on the Internet.

Should Guan Xiaotong be held responsible for this incident?

In the relevant interviews, everyone has different opinions on whether Guan Xiaotong should take some responsibility for this.

Some experts believe that Guan Xiaotong is the spokesperson of the company, and the spokesperson should be responsible for brand disputes under certain circumstances. As a public figure, she should do things that are responsible to consumers.

Some experts also believe that Guan Xiaotong is an ordinary advertising spokesperson from the perspective of general business practices. She is only responsible for publicity. This kind of quality problem may be the responsibility of the manufacturer or other agents.

（Pictures from the Internet）

In the opinion of Ge Youshan, Executive Director of Beijing JAVY Law Firm, whether Guan Xiaotong should take responsibility depends on the specific content of her endorsement.

Lawyer Ge Youshan

Whether the content of Guan Xiaotong's endorsement is a related business model or just a single product such as milk-tea, this may be the focus of this case.

According to the provisions of the Advertising Law, Guan Xiaotong assumes responsibility on the premise that she knows or should have known that the advertisement is false, and recommends or certifies products or services or related business models in the advertisement. The milk-tea company involved issued a statement saying that Guan Xiaotong was not the subject of the contract and did not participate in the company's operation and management. I think this is just a one-sided statement. As for whether Guan Xiaotong should take responsibility, it still needs the judicial authorities to make a final determination on her endorsement behavior.

If it is determined that Guan Xiaotong is at fault in the endorsement process, such as making recommendations and proofs even though she knows the advertisement is false, then she will be jointly and severally liable for the franchisee in this case. However, if the judiciary determines that Guan Xiaotong only endorses the product itself, excluding the business model of the endorsement company, then in this case, she may not be jointly and severally liable for compensation.

Who should be held accountable for franchise problems?

Who should be held accountable when a franchisee encounters related problems in the process of joining the franchise? If the situation reported by the franchisees in this dispute is true, what kind of punishment will the milk-tea company involved be punished?

Lawyer Ge Youshan:

First of all, the franchisee can make a claim to the franchisor, which is the so-called headquarters. All the losses of the franchisee should be borne by Chengdu Naturaly Stay Catering Management Co., Ltd.

Secondly, in this process, franchisees can also report to the competent commercial department, because the commercial franchise management regulations clearly stipulate that those who do not meet the conditions for engaging in franchise activities should be ordered by the competent commercial department to make corrections, confiscate their illegal gains, and impose penalties on them. A fine of not less than 100,000 yuan but not more than 500,000 yuan should be announced.

Thirdly, if the situation is true, it means that Chengdu Naturaly Stay Catering Management Co., Ltd. obviously does not have the legal qualifications to engage in the business franchise model, and the company involved should first assume responsibility for the breach of contract to the franchisee and compensate the franchisee for their losses. Besides, the commercial authorities should also impose administrative penalties on the companies involved.

Celebrities want to endorse, it is recommended to examine and evaluate the brand from multiple dimensions, "seeking truth from facts", not exaggerating, and not recommending or endorsement for unused goods or services that have not been accepted. If the products or services endorsed by celebrities are related to the life and health of consumers, they must bear corresponding legal responsibilities.