Commercial franchising refers to an enterprise (hereinafter referred to as the franchisor) that owns registered trademarks, corporate logos, patents, proprietary technologies and other business resources, and licenses its business resources to other operators in the form of a contract (hereinafter referred to as the franchisee), the franchisee carries out operations under a unified business model in accordance with the contract and pays franchise fees to the franchisor. Other units and individuals other than enterprises may not engage in franchise activities as franchisors.

(Preferential policies related to commercial franchise application - if you want to know more, you can follow us)

1. The service object engaged in franchise activities should have at least 2 direct-operated stores, and Operating time is more than 1 year. The franchisor shall file a record with the competent commerce department within 15 days from the date of first entering into a franchise contract. Local commerce authorities, enterprises, and the public

II. Legal Basis "Commercial Franchise Management Regulations" and "Commercial Franchise Filing Management Measures"

III. Application Conditions

Other units and individuals other than the enterprise may not engage in franchise activities as franchisors. Enterprises with business resources such as registered trademarks, corporate logos, patents, and proprietary technologies. Those engaged in franchising activities should have a mature business model and the ability to continuously provide business guidance, technical support, business training and other services to franchisees.

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

(1) Basic information on commercial franchising.

(2) The distribution of stores of all franchisees in China.

(3) The franchisor’s market plan.

(4) Enterprise legal person business license or other subject qualification certificate.

(5) Registration certificates of trademark rights, patent rights and other business resources related to franchise activities.

(6) Certification documents that comply with the provisions of Paragraph 2 of Article 7 of the Regulations.

The provisions of the preceding paragraph shall not apply to franchisors who have already engaged in franchising activities before May 1, 2007 when submitting application materials for commercial franchise registration.

(7) The first franchise contract entered into with a franchisee in China.

(8) Sample of franchise contract.

(9) Contents of the franchise operation manual (the number of pages in each chapter and the total number of pages in the manual must be indicated. For such manuals provided on the internal network of the franchise system, an estimate must be provided number of printed pages).

(10) National laws and regulations stipulate that products and services that can only be franchised upon approval must submit approval documents from the relevant competent authorities.

(11) Franchisor’s commitment signed and sealed by the legal representative.

(12) Other information that the filing authority deems should be submitted.

Directly-operated stores refer to stores owned by the franchisor, including wholly-owned and controlling-owned stores, and the directly-operated store and the franchisor should belong to the same brand and the same business nature. In practice, it takes many forms such as branches, subsidiaries (holdings), and stores within stores.

Conditions for franchise registration with the Ministry of Commerce, fees and procedures for franchise registration, one-time notification letter of department processing time, chain franchise application guide

(Zhongma Intellectual Property Commercial Franchise Registration - Preferential policies related to commercial franchise application - If you want to know more, you can follow us)