Recently, the market-oriented reform for government public utilities through franchise model is favored by government at all levels, and it has made great progress. The franchise contract is a new type of contract that regulates the rights and obligations, and rationally distributes risks. In the meanwhile, it is an important evidence to effectively solve the franchise disputes. However, unfortunately, the franchise contract, as a new type of contract, is still under the grey zone in China's legal system. It has not been definitely defined by contract law, administrative law, or economic. In practice, the legal property about franchise contract has not been formed consensus in China’s academic circles. Besides, the specific provisions for the contract signing, the basic rules for the contract performance, and the resolutions for the contract violation are still under ambiguities. What should be defined is, whether the franchise contract is definitely and reasonably related with the success of the government public utilities or not. Considering the questions aforementioned, this paper views from the pubic utilities franchise contract, and specifically focuses on the research about the main problems recently existing in China, such as legislative conflicts, contract duration, government guarantees, pricing mechanisms, and risk sharing, to effectively regulate franchise contract, release the capital conflict between government and society, and improve the relevant legal system.
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