If the relationship between the brand of early education institutions and franchisees is franchising, not direct operation, and franchisees are involved in breach of contract litigation, is the brand responsible? The brand is responsible. This is equivalent to the relationship between people and things. Franchisees belong to franchisees, and brands belong to franchisees. When there is a dispute between the related party and the third party, what kind of legal responsibilities the related party and the affiliated party should bear is not clearly defined in the existing laws and regulations system in China, but only how to determine the subject of litigation is explained judicially.

The Supreme People's Court only made a judicial interpretation on how to determine the subject of litigation under similar circumstances. Article 43 of the Supreme People's Court's Opinions on Several Issues Concerning the Application of the Civil Procedure Law of People's Republic of China (PRC) stipulates: "If an individual industrial and commercial household, individual partnership or private enterprise is affiliated with a collective enterprise and engages in production and business activities in the name of a collective enterprise, the individual industrial and commercial household, individual partnership or private enterprise and its affiliated collective enterprise are the same litigant." Article 52 also stipulates: "If a business introduction letter, a special seal for a contract, a stamped blank contract or a bank account number is borrowed, the lender and the borrower shall be * * * co-litigants." According to the provisions of the above judicial interpretation, it can be presumed that when the related party deals with the third party in the name of the related party, if there is a dispute between the third party and the related party, the third party can treat the related party and the related party as co-defendants and jointly investigate their joint liability.