According to Article 3 of the Regulations on the Administration of Commercial Franchise, commercial franchising refers to the business activities in which an enterprise with registered trademarks, enterprise logos, patents, proprietary technologies and other business resources licenses its business resources to other operators in the form of contracts, and the franchisee conducts business under a unified business model in accordance with the contract and pays franchise fees to the franchisor.

As a special business model, commercial franchising is common in our daily life, especially in the catering industry and retail industry. According to the Regulations of the State Council Municipality on the Administration of Commercial Franchise and the Measures of the Ministry of Commerce for the Administration of Commercial Franchise Filing, enterprises engaged in franchise activities shall file with the competent commercial authorities.

No unit or individual other than an enterprise may engage in franchise activities as a franchisor. As long as the investment cooperation is carried out through the above methods, it needs to be filed.