What does franchising mean?

1. Legal interpretation:

Article 3 of the "Commercial Franchise Management Regulations"

The commercial franchise (hereinafter referred to as the franchise) referred to in these Regulations, It refers to an enterprise (hereinafter referred to as the franchisor) that owns registered trademarks, corporate logos, patents, proprietary technologies and other business resources, and licenses its business resources to other operators (hereinafter referred to as the franchisee) in the form of a contract to use them. Business activities in which a person carries out operations under a unified business model in accordance with the contract and pays franchise fees to the franchisor.

2. Specific explanation:

Other units and individuals other than the enterprise may not engage in franchise activities as franchisors. It means that the licensor licenses its trade name, trademark, service mark, trade secret, etc. to the operator under certain conditions, allowing him to engage in the same business as the licensor within a certain area.

3. Legal basis:

According to Article 3 of the "Commercial Franchise Management Regulations", commercial franchising refers to operations with registered trademarks, corporate logos, patents, proprietary technologies, etc. Resource enterprises license their operating resources to other operators (franchisees) in the form of contracts, and the franchisees carry out operations under a unified business model in accordance with the contract and pay franchise fees to the franchisor. . Other units and individuals other than enterprises may not engage in franchise activities as franchisors.