Franchises Sprouting Across China

China Economic Net:

When domestic franchise enterprises began consciously to speed up their pace for adjustment, international franchise giants are accelerating their steps to enter China.

Statistics show that at present there are more than 1900 franchise systems and nearly 82 thousand franchise chains in China, providing jobs for about 2 million employees and covering more than 50 industries and formats. Franchise mode has begun to extend to more industries particularly since early of this year when China canceled restrictive prescriptions on foreign-funded franchise according to the promise it made on its entry into WTO and when Managing Measures on Business Franchise went into effect formally on February 1.

The lift of policy restrictions is one of the major reasons attracting over 100 famous “franchisers”, including Dicos, Subway, TNT, etc., to attend the Franchising China 2005. There are up to 305 exhibit spaces in this exhibition, 10 percent higher than last year. Some international chain titans, which have entered China in early years to establish “direct sales stores”, begin to exert their energy on franchise business.