Commercial franchising, generally refers to franchising, sometimes also called franchising, is a marketing method. It refers to the possession of registered trademarks, corporate logos, patents, proprietary technologies and other commercial capital.
The source enterprise, that is, the franchisor, licenses these business resources owned by itself to other operators, that is, franchisees, which operate in a unified manner according to the contract.
Conduct business activities according to the business model and pay corresponding fees to the franchisor.
Commercial franchise filing application process
1. Materials required for franchising enterprises to prepare for filing (paper version) Overseas registered enterprises shall be submitted to the Ministry of Commerce, and domestic registered enterprises shall be submitted to the local provincial authorities.
2. Franchise enterprises log on to China Commercial Franchise Network to register franchise enterprises, and wait for the approval of the competent commercial department to obtain the login number.
3. The competent commercial department shall issue the login number after verifying that the registered information and paper materials of the franchised enterprise are correct.
4. After receiving the login number, the franchised enterprise logs into the enterprise background of China Franchise Online and submits relevant information.
5. The competent department of commerce shall review the relevant materials submitted by the franchised enterprise and make an announcement after confirmation.
The following documents and materials shall be submitted to the competent department for the record of commercial franchising:
(a) the basic situation of commercial franchising.
(2) Distribution of all franchisees in China.
(3) the franchisor's market plan.
(4) Business license or other qualification certificates of enterprise legal person.
(5) Registration certificates of business resources such as trademark rights and patent rights related to franchise activities.
(six) documents that meet the provisions of the second paragraph of Article 7 of the Regulations.
The provisions of the preceding paragraph shall not apply to franchisers who have engaged in franchising activities before May/KLOC-0, 2007 when submitting filing materials for applying for commercial franchising.
(7) The first franchise contract signed between China and the franchisee.
(8) A sample franchise contract.
(9) Catalogue of Franchise Operation Manual (the number of pages in each chapter and the total number of pages of the manual shall be indicated, and if such manual is provided on the internal network of the franchise system, the estimated number of printed pages shall be provided).
(ten) the products and services that must be approved by the laws and regulations of the state shall be submitted to the approval documents of the relevant competent departments.
(eleven) the franchisor's undertaking signed and sealed by the legal representative.
(twelve) other materials that should be submitted by the filing authority.
People's own intellectual property rights, and with it as the core, franchising without intellectual property rights authorization is unthinkable and cannot be called franchising. It can be said that the franchise and the intellectual property rights it contains are born and died together. Therefore, for franchisees, the most important thing in the business process is the protection of intellectual property rights. Therefore, the following matters should be paid attention to when authorizing:
Matters needing attention in commercial franchise filing
1, scope of authorization
A) there are unlimited customers;
B) How to divide the authorized areas;
C) The right to use the intellectual property rights involved, such as trademarks, patents and copyrights;
D) In addition to the above contents, the contract generally includes geographical restrictions, provisions on business hours, and compliance with trade secrets. Different industries and enterprises have different contract contents.
2. Use of licensed resources
A) Specification for the use of licensed resources;
B) The franchisee commits acts that are detrimental to the licensed resources.
3. Ownership of intellectual property rights
In the process of franchising, the franchisee is likely to improve the original intellectual property rights and determine the ownership of new intellectual property rights based on the improvement or development of the franchised intellectual property rights.
4. Termination and consequences of the contract
Generally speaking, after the termination of the contract, the franchisee can no longer use all the commercial trademarks, names, signs and other rights of the headquarters, and can not engage in similar business activities for a certain period of time. How to stipulate the rights and obligations of both parties after the termination of the contract?
5. Non-competition after the expiration of the franchise period.
A) Whether to restrict the franchisee from engaging in similar commercial activities after the expiration or transfer;
B) If yes, whether the time limit and area are reasonable.
In addition to the above aspects, there are many problems such as joining fee, procurement and supply, advertising, liability for breach of contract, loss compensation and so on.
If the above-mentioned documents are formed outside People's Republic of China (PRC) and China, they must be notarized by the notary office of the host country (with Chinese translation attached), authenticated by the embassies and consulates of People's Republic of China (PRC) and China in the host country, or go through the authentication procedures stipulated in the relevant treaties concluded between People's Republic of China (PRC) and the host country. In Hongkong, Macao and Taiwan Province Province, the relevant certification procedures shall be fulfilled.