Tips for franchising in China
Two specialists provide advice on what issues to be aware of and what precautions to take when considering franchising in the PRC.
Issue: February 2011
Keywords (click to search):
Salans
Lehman
Xu
franchising
franchise
My company owns a successful chain of retail shops across the US and Australia. We’re now looking at expanding into China for obvious reasons. I’m not clear about franchising laws in the PRC and to my limited knowledge, they are still not quite developed. Are there any guidelines I should follow when considering entering the Chinese market through franchising? Are there limitations to a franchising strategy for foreign franchisers? In short:
How do I franchise my business in China?
The international perspective
Keys to successful franchising in China
Franchising is essentially a tool to remotely control the products, quality, look and feel of a business that is run by an independent entrepreneur. Besides a good brand, location and business model the essential ingredients for this to work in China are good franchisees, good quality control, good training and support, and when trust fails, effective and swift sanctions. The tools...
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