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Rules for Administration
of Commercial Franchise was promulgated on January 31, 2007. The
highlights are marked as below:
1. Commercial Franchise
(Franchise) means that enterprises (Franchiser) which possess business
resources including trademark, enterprise symbol, patent, proprietary
technology etc., permit other enterprises (Franchisee) the use of
these business resources in the form of contract. Franchisees must
run their business with the identical business model in accordance
with the contract, and pay the franchise fee for their commercial
activities.
2. Franchiser who is
engaged in franchising activities should possess at least 2 direct
stores, and run business over 1 year.
3. When engaging in
franchising activities, franchiser and franchisee must have their
franchising contract made and concluded in written form.
4. Franchiser should
report to the Ministry of Commerce within 15 days after the first
franchising contract concluded,
This Ordinance will
go into effect on May 1, 2007.
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