FOCUS: China franchise market

China Market
Final Thoughts.
The Bottom Line
Many signs indicate that franchising will become easier in China
over the next few years. China’s rapidly growing, sophisticated,
affluent consumer base has a desire for imported brands that
offer convenience, quality and service.
Finding Key Regulations a partner on in Franchising China does in involve Franchise effort Registration: but there are
more
China:
potential partners than before and this number will
According to the Regulation, a
continue to grow. Business risks are mitigated with the increase
Currently, the key regulations on franchisor must, within 15 days
in the number of foreign brands and the tightening of business
franchising in China include: the after signing a franchise
regulations
Regulation on
ensuring
Administration
better practice.
of agreement
The basic
for
economics,
the first franchised
size
of Commercial the consumer Franchises market and recent location trends, in provide China, file great an
country (Regulation), potential. the Administrative application with the appropriate
Measures for the Registration of commercial authority in the MOC
It Commercial is our opinion Franchises that China’s franchise to register market its will franchise. show very The
healthy (Registration growth Measures), and all franchisors and the registration must view requirement it as a challenging is an
but Administrative primary target Measures for international for administrative expansion. measure to
Information Disclosure of
regulate franchise activities, and
To Commercial conclude: Franchise Trends and (Disclosure the economy also provides display all potential the outward
signals Measures). that The the Regulation Chinese market was and franchisees consumers with are public ready access for to
new
promulgated
imported
by
franchises.
the State Council, more information regarding the
while both of the Measures were franchisor and its business.
issued by the Ministry of
Although the failure to register
Franchise Meets reckons: 8.5/10.
Commerce (MOC).
does not impact the effectiveness
of the franchise agreement, a
franchisor that fails to timely file
the franchise registration could
face a fine.