Overview Of The Chinese Franchise Market With Focus On Food & Beverage, Apparel, Education, And Fitness

Earthtimes:

Research and Markets has announced the addition of ‘China: Franchising Industry’ to their offering.

The objective of the report is to provide an overview of the Chinese franchise market with focus on 4 sectors: food & beverage, apparel, education, and fitness, beyond the already established cities of Shanghai, Beijing, and Guangzhou.

Summary:
Market overview. China is now the largest franchise market in the world in terms of the total number of franchised outlets - there are over 2,600 brands with some 200,000 franchised retail stores in over 80 sectors. Franchising has also experienced significant growth of about 35% - 40% annually in the last few years due to rising disposable incomes and an increasing number of Chinese entrepreneurs willing to adopt franchising models.

Regulatory environment. China’s first franchise law was enacted in 1997, but there were several uncertainties and ‘grey’ areas, particularly for foreign franchisors. More regulations were issued in 2005 and in March 2007, which further clarified the law; for example cross-border franchising2, which was previously in a grey area, is now permitted. This opens up opportunities for mid-sized US franchisors that do not necessarily want to or have the resources to set up a legal presence in China.

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