A new regulation on commercial franchising in China takes effect starting from May 1st. The new rule better administers brand owners and brand shop runners. It aims to better regulate China’s franchise market.
Starting from May the 1st, the new regulation on commercial franchising in China takes effect. The initiative was announced in early February by the Ministry of Commerce.
The new rules plans to better regulate the franchise market in China by setting up clear requirements for entry and operation, for both domestic and overseas brands. Experts believe the new rules will help curb fraud and protect investors’ interests.
Pei Liang, secretary-general to China Chain Store & Franchise Assn. said ‘The franchise business has developed well in China. But some problems still remain. One of the major concern is that after joining the brand, some small and middle investors encounter brand owners who fail to fulfill their side of the deal. There’s even some cheating in the market. So the new rule is necessary to help better regulate the market.’
FranchiseBrief.com on May 1st, 2007 at 3:57 pm
It’s great to have better franchise regulations in China but if the governemtn doesnt do anything to enforce copyrights and trademarks, it’s not not gonna do it!