Legal basis: Article 3 of the Regulations on the Administration of Commercial Franchise in the State Council The commercial franchising mentioned in this Regulation (hereinafter referred to as 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. Franchisees operate under a unified business model according to the contract and pay franchise fees to franchisees. No unit or individual other than an enterprise may engage in franchise activities as a franchisor.