What is a franchise license?

Commercial franchising refers to the business activities in which an enterprise (hereinafter referred to as the franchisor) with registered trademarks, enterprise logos, patents, proprietary technologies and other business resources licenses its business resources to other operators (hereinafter referred to as the franchisee) in the form of a contract, and the franchisee conducts business under a unified business model in accordance with the contract and pays franchise fees to the franchisor. No unit or individual other than an enterprise may engage in franchise activities as a franchisor. ?

Franchising has the following characteristics:

1. The franchisor must be an enterprise with registered trademarks, enterprise logos, patents, proprietary technologies and other business resources (hereinafter referred to as the franchisor), and license its business resources to other operators (hereinafter referred to as the franchisee) in the form of contracts, and the franchisee shall conduct business under a unified business model according to 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. ?

2. Franchisors engaged in franchising activities shall have a mature business model and the ability to continuously provide business guidance, technical support and business training for franchisees. Franchisees engaged in franchising activities shall have at least two direct stores, and the operating time shall exceed 1 year.

3. The franchisor shall, within 15 days from the date of concluding the franchise contract for the first time, file with the competent commercial department in accordance with the provisions of these Regulations.

4. The franchisee engages in business activities under the unified management system according to the contract and pays franchise fees to the franchisor.

5. To engage in franchise activities, the franchisor and the franchisee shall conclude a franchise contract in writing.

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