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. ?

Franchising has the following characteristics:

1. The franchisor must be an enterprise with registered trademarks, corporate logos, patents, proprietary technologies and other business resources (hereinafter referred to as the franchisor) , in the form of a contract, the operating resources it owns are licensed to other operators (hereinafter referred to as franchisees) for use. The franchisees carry out operations under a unified business model in accordance with the contract and pay franchise fees to the franchisor. Other units and individuals other than enterprises may not engage in franchise activities as franchisors. ?

2. The franchisor shall have a mature business model when engaging in franchise activities, and shall have the ability to continuously provide business guidance, technical support, business training and other services to the franchisee. To engage in franchise activities, the franchisor must have at least 2 directly-operated stores and operate them for more than one year.

3. The franchisor shall file a record with the competent commerce department in accordance with the provisions of these regulations within 15 days from the date of first entering into the franchise contract.

4. The franchisee shall engage in business activities under a unified operating system in accordance with the contract and pay franchise fees to the franchisor.

5. When engaging in franchise activities, the franchisor and the franchisee shall enter into a franchise contract in written form.

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