MOFCOM Will Amend Franchise Regulations

To further standardize the "12th Five-Year" period concession Business sector Healthy development Ministry of Commerce On the 7 day, drafted the Ministry of Commerce's Guiding Opinions on further promoting the healthy development of franchising during the "12th Five-Year" period. The Ministry of Commerce will timely amend and improve the regulations on the management of franchised businesses.

According to the draft, according to the "Regulations on commercial franchise management", the "Regulations on the management of franchise records" and the "management measures for information disclosure of commercial franchises" will be further improved during the "12th Five-Year" period. According to the actual situation, the regulations on the administration of commercial franchise shall be revised and improved in due course. At the same time, we should strengthen the implementation and promotion of the standards of the franchise management system and franchise terms, and strive to improve the construction and standardization of the franchising system.

At the same time, the Ministry of Commerce will also strengthen the supervision and administration of industries, intensify law enforcement, crack down on illegal criminals who are using commercial franchising to franchise, and fully protect the legitimate rights and interests of franchisees and franchisees.

As a form of modern business organization, commercial franchising has developed rapidly in China. In recent years, it has become an effective way to improve the concentration of trade and circulation industry, strengthen brand building and enhance core competitiveness. However, there are some problems in the development of franchising in China. Franchisee profit model and control capability is obviously lacking, some two or three line market franchisee quality is difficult to meet the requirements, some localities also exist illegal elements in the form of merchants to join in the form of commercial fraud. According to relevant media reports, some enterprises have taken the initiative to deceive the franchisees by joining the alliance, and some enterprises have appeared after the alliance. The draft was not only effective in promoting the healthy development of commercial franchise during the "12th Five-Year" period, but also promoting the transformation of the development mode of modern circulation industry.

The draft pointed out that after five years' efforts, the number, scale of operation, standard level and success rate of operation of the major franchised brands in China have been greatly improved. The franchise management system has been further improved, the filing rate of the franchise system has increased year by year, and the complaint rate has been decreasing year by year.

During the "11th Five-Year" period, China's commercial franchising developed rapidly, and the number of enterprises increased dramatically. By the end of 2010, China's franchise system has exceeded 4500, ranking first in the world, and has a wide range of operations, and the related fields have extended to all walks of life.