Issues relating to the organization of the process of education via the network system is being discussed vigorously among specialists in the field of social economic theory and economic sociology. An example of network education is seen in the network of affiliates and branch offices of institutions of higher learning. This journal has already focused attention on this topic, having printed two articles that prompted very promising discussion. In issue no. 5 of 2001, it published an article by G. Okorokova and N. Klikunov, the rector and vice rector of the Kursk Institute of Management, Economy, and Law, titled "On the Status of the Affiliate". In issue no. 1 of 2002, an article titled "Once More About the Status of the Affiliate" by T. Vladykina, a representative of Urals State Academy of Law, examined a number of aspects from the legal point of view. This paper continues that discussion, particularly as it relates to an alternative form of network education known as educational franchising, which is defined as a manner of conducting business by transferring the rights to provide educational services, in the name of the franchisor, on a strictly defined territory, and in compliance with standards of quality.