According to 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 the act that an enterprise (hereinafter referred to as franchisor) owns business resources such as registered trademarks, enterprise logos, patents and proprietary technologies, and licenses its business resources to other operators (hereinafter referred to as franchisees) in the form of contracts.
The franchisee shall conduct business under a unified business model as agreed in the contract and pay franchise fees to the franchisor. No unit or individual other than an enterprise may engage in franchise activities as a franchisor.
Extended data
Article 11 of the Regulations on the Administration of Commercial Franchise stipulates that:
Franchise contracts shall include the following main contents:
1. Basic information of franchisor and franchisee;
2. The content and duration of franchising;
3. Types, amounts and payment methods of franchise fees;
4, business guidance, technical support and business training and other services, the specific content and mode of provision;
5, product or service quality, standard requirements and guarantee measures;
6. Promotion and advertising of products or services;
7. Protection of consumers' rights and interests in franchising and liability for compensation:
8. Alteration, rescission and termination of the franchise contract;
9. Liability for breach of contract;
10, dispute settlement;
1 1. Other matters agreed by the franchisor and the franchisee.
Baidu Encyclopedia-Regulations on the Administration of Commercial Franchise