Legal basis: Regulations on the Administration of Commercial Franchising in People's Republic of China (PRC) (hereinafter referred to as franchising) Article 3 Franchising refers to an enterprise (hereinafter referred to as franchisor) with registered trademarks, enterprise logos, patents, proprietary technologies and other business resources, and licenses its business resources to other operators (hereinafter referred to as franchisees) in the form of contracts, and the franchisees operate under a unified business model according to the contracts. No unit or individual other than an enterprise may engage in franchise activities as a franchisor.