9 July 2014
Online CBA: What Are the Requirements for Conducting Franchise Business in China?
Q: What Are the Requirements for Conducting Franchise Business in China?
A: According to the Regulations for the Administration of Commercial Franchise, a franchiser must meet the following criteria:
(1) The franchiser must have its own operational resources such as a registration trademark, corporate logo, patent and proprietary technology; and must have developed a standard, mature operational mode;
(2) The franchiser must be capable of providing continued operational guidance, technical support and business training to franchisees.
To ensure that the operational mode of the franchiser is “mature”, the regulations also stipulate that the franchiser must meet requirements on the scale and period of operation. In other words, it must have at least two directly owned stores and have been in operation for one year or more before it can recruit franchisees on the market.
(The HKTDC provides one-on-one China Business Advisory Service free of charge to assist companies in resolving problems encountered when doing business in China. For enquiries and appointments, please call (852) 1830 668 or register online.)