Legal basis: Article 3 of the Regulations on the Administration of Commercial Franchise: Commercial franchising (hereinafter referred to as franchising) as mentioned in this Regulation refers to an enterprise (hereinafter referred to as franchisor) with registered trademarks, enterprise logos, patents, proprietary technologies and other business resources, and licenses its business resources to other operators (hereinafter referred to as franchisees) in the form of contracts, and the franchisees operate in a unified business model according to the contract and pay remuneration to the franchisees. No unit or individual other than an enterprise may engage in franchise activities as a franchisor.