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What does franchise mean?

Franchise rights refer to the rights to business resources such as registered trademarks, corporate logos, patents, and proprietary technologies that the franchisor owns or has the right to grant to others for use. In franchising, brand and technology are the core. Brands are generally represented by registered trademarks, trade names, corporate logos, etc. that the franchisor owns or has the right to grant to others for use; technology includes proprietary technologies and management technologies that the franchisor grants to the franchisee. Technology etc.

Franchising is a contractual relationship between the franchisor and the franchisee. The franchisor provides or is obligated to maintain continued interest in the areas of business know-how and training in the franchisee's operations; the franchisee The business is conducted under a unique mark, business model and processes owned and controlled by the franchisor, and the franchisee invests in its business from its own resources.

Franchising is when the franchisor grants its trademarks, trade names, products, patents, technical secrets, formulas, business management models and other intangible assets to the franchisee (licensee) for use in the form of a franchise contract. , a business form in which the franchisor engages in business activities according to the franchisor's unified business model and collects fees from the franchisee.

Legal Basis

"Franchise Management Measures"

Article 8 The franchisor shall, within 15 days from the date of first entering into the franchise contract, in accordance with these Regulations The regulations shall be filed with the competent commerce department. Those who engage in franchising activities within the scope of a province, autonomous region, or municipality directly under the Central Government shall file a record with the competent commerce department of the people's government of the province, autonomous region, or municipality directly under the Central Government; those who engage in franchising activities across provinces, autonomous regions, or municipalities directly under the Central Government shall file a record with the commerce department of the State Council.

The franchisor shall submit the following documents and materials when filing with the competent commerce department:

(1) A copy of the business license or a copy of the enterprise registration (registration) certificate;

(2) Franchise contract sample;

(3) Franchise operation manual;

(4) Marketing plan;

(5) A written commitment and relevant supporting materials indicating that it complies with the provisions of Article 7 of these Regulations;

(6) Other documents and materials specified by the commerce department of the State Council.

If franchised products or services require approval according to law before they can be operated, the franchisor shall also submit relevant approval documents.