The franchise agreement has not yet been regulated by law as a separate type of contract. The paper deals with the franchise agreement, which as a contractual type comprehensively regulates the Draft Common Frame of Reference, which aims to provide structure and guidance for the development of harmonized European private law. Although the Common Frame of Reference has been drawn up as a basis for further reflection on an optional European contract law instrument, the rules of which would allow a greater degree of convergence between the contract laws of the Member States of the Union, the rules and principles of the franchisor to be a suitable guide for the regulation of these business relations, especially in the absence of domestic legal regulation of franchise business.