Commercial Franchising in China

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Hao WangRayYin & PartnersThe seventh International Franchising Session, hosted by the China Chain Store & Franchise Association, witnessed the appearance…


Hao Wang
RayYin & Partners

The seventh International Franchising Session, hosted by the China Chain Store & Franchise Association, witnessed the appearance of foreign brands such as IDO, The Pizza Company and Cartridge World. After the meeting, US company Burger King concluded its franchise agreement with Xiamen ITG Group Corp., Ltd., under which the latter was licensed the exclusive rights in Fujian Province to operate Burger King.

A popular and efficient management mode, commercial franchising (hereinafter “franchising”) means the business activity wherein an enterprise (the “franchisor”) licenses its own business resources, such as registered trademarks, patents, etc., to other business operators (“franchisees”) and charges a franchise fee. The franchise fee entitles the franchisees to intellectual property rights, and successful mode and experience of management.

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