Franchising refers to an individual or enterprise (that is, a franchisor) with a unique operating system of products, equipment, commercial patents or service marks, and giving other individuals or enterprises (that is, franchisees) the right to conduct inter-bank business activities within a specified area and time limit in advance.
Franchising generally includes three different forms: trademark franchising, product franchising and business mode franchising.
In China, there are two kinds of franchise rights, one is authorized by the government to allow specific enterprises to use public resources or engage in specific businesses.
The second is that an enterprise allows another enterprise to use its trademark or patent within a certain period and scope, and carry out production and business activities under a unified business model.
The franchise period shall be freely agreed by the franchisor and the franchisee.