China, Franchising and the 2008 Olympics: Is the Time Right?
China is now the largest franchise market in the world, and the 2008 Olympic Games has the potential to further expand this market. In respect of merchandizing, the BOCOG has utilized the franchise model to an unprecedented level. China’s IP laws have been in substantial compliance with international standards for several years now, but enforcement has been a problem. The Olympic Games has forced the Chinese government to implement the groundwork for effective IPR protection.
Date:
June 2008
Keywords (click to search): [IP] [franchising] [Olympics] [merchandizing]
A SHORT HISTORY
The current state of the franchising industry in China is phenomenal when one considers its history. Franchising was virtually non-existent in China in the early 1990s: China enacted its first franchise law in 1997. However, the 1997 law did not refer to foreign companies and it was questionable whether foreign franchises were permitted in China. At this time there was no public awareness of the franchising model. Jim Bryant, the entrepreneur behind bringing Subway to China, once stated that his early experiences in China involved him having to teach the franchising concept to a country that had never heard of it. He recalls that when he started, there was no Chinese word for “franchise.”1
Since the 1990s the Chinese have been quick to recognize the usefulness of the franchised business model, particularly its ability to combine the benefits of small businesses with large brands, distribution and processes....
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