Legal analysis: Commercial franchising (hereinafter referred to as 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 transfers them in the form of a contract. The business resources it owns are licensed to other operators (hereinafter referred to as franchisees). The franchisees carry out operations under a unified business model in accordance with the contract and pay franchise fees to the franchisor.

Legal basis: Article 3 of the "Regulations of the People's Republic of China on the Administration of Commercial Franchise" (hereinafter referred to as "franchise") as mentioned in these Regulations refers to those who own registered trademarks, corporate logos, Enterprises that operate resources such as patents and proprietary technologies (hereinafter referred to as franchisors) license their operating resources to other operators (hereinafter referred to as franchisees) in the form of contracts. The franchisees will operate under a unified business model in accordance with the contract. Carry out business activities under the franchisor and pay franchise fees to the franchisor.