Franchising means that the franchisee grants its own trademarks (including service trademarks), trade names, products, patents, proprietary technologies and other business resources to the franchisee in the form of a franchise contract, and the franchisee engages in business activities under the franchisee's unified business model according to the provisions of the contract and pays corresponding fees to the franchisee. Compared with direct chain stores, franchising not only reduces the operating costs of franchisees, but also expands the market. It can also reduce the investment risk of franchisees and is conducive to entrepreneurship; At the same time, because it can guarantee the same product quality and service, it is more beneficial to consumers and is a "win-win" operation mode. Therefore, at present, many large international chain enterprises, such as KFC and McDonald's, are constantly developing and growing by franchising. The development of modern franchising in China began in the mid-1980s. By the end of 20 1 1, there were more than 5,000 franchise systems in China, with the total number of franchisees exceeding 1 10,000, covering more than 70 industries, and the number of jobs directly created by franchise enterprises exceeded 1 10,000. At the same time, the standardization and management system has been gradually established: on the one hand, the supporting laws and regulations are becoming more and more perfect. Since 2007, the Regulations on the Administration of Commercial Franchise, the Measures for the Administration of Commercial Franchise Filing and the Measures for the Administration of Information Disclosure of Commercial Franchise have been promulgated and implemented one after another. The draft of 20 12 Provisions on the Punishment Procedure of Commercial Franchise has been held at an expert forum and will be announced soon. On the other hand, the Ministry of Commerce has set up a commercial franchise management office composed of six departments, namely, the circulation development department, the laws and regulations department, the market order department, the finance department, the service trade department and the e-commerce department, to further strengthen guidance and management and ensure the standardized market order and the healthy development of the industry.