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What is franchising?
Legal analysis: Franchising means that the licensor licenses its trade name, trademark, service mark and trade secret to the operator under certain conditions, allowing it to engage in the same business as the licensor in a certain area.

Legal basis: Article 3 of the Measures for the Administration of the Filing of Commercial Franchises The Ministry of Commerce and the competent commercial departments of the people's governments of provinces, autonomous regions and municipalities directly under the Central Government are the filing organs of commercial franchises. Engaged in commercial franchise activities within the scope of provinces, autonomous regions and municipalities directly under the central government, it shall be filed with the competent commercial department of the people's government of the province, autonomous region or municipality directly under the central government where the franchisor is located; Franchising activities across provinces, autonomous regions and municipalities directly under the Central Government shall be filed with the Ministry of Commerce.

Commercial franchising shall be filed on the national network. Franchisors who meet the requirements of the Regulations shall file records through the commercial franchise information management system established by the Ministry of Commerce in accordance with the provisions of these Measures.