Measures for the Administration of Information Disclosure of Commercial Franchise

Article 1 In order to safeguard the legitimate rights and interests of both franchisers and franchisees, these Measures are formulated in accordance with the Regulations on the Administration of Commercial Franchising (hereinafter referred to as the Regulations).

Article 2 These Measures shall apply to commercial franchise activities in People's Republic of China (PRC).

Article 3 The term "related parties" as mentioned in these Measures refers to the franchiser's parent company or its natural person shareholders, the franchiser's subsidiaries which directly or indirectly own all or most of the shares, and the companies which directly or indirectly own all or most of the shares with the franchiser.

Article 4 The franchisor shall, in accordance with the Regulations, disclose the information specified in Article 5 of these Measures to the franchisee in writing at least 30 days before the conclusion of the commercial franchise contract, unless the franchisor and the franchisee renew the contract on the same terms as the original franchise contract.

Article 5 A franchisor shall disclose the following information:

(1) Basic information about the franchisor and franchise activities.

1. Franchisor's name, mailing address, contact information, legal representative, general manager, registered capital, business scope and the number, address and contact number of existing direct stores.

2. Overview of the franchisor's business franchise activities.

3. Basic information about the franchisor's filing.

4. Where the franchiser's affiliated party provides products and services to the franchisee, it shall disclose the basic information of the affiliated party.

5. The franchisor or its related party has gone bankrupt or filed for bankruptcy in the last two years.

(2) Basic information on the franchisor's operation of resources.

1. A written explanation of registered trademarks, company logos, patents, proprietary technologies, business models and other commercial resources.

2. If the owner of the operating resources is a related party of the franchisor, the basic information and authorization contents of the related party shall be disclosed, and at the same time, how to deal with the franchise system in the case of suspension or early termination of the authorization contract with the related party shall be explained.

3. The registered trademark, enterprise logo, patent, proprietary technology and other commercial resources related to franchising of the franchisor (or its related parties) involve litigation or arbitration.

(3) Basic information on franchise expenses.

1. If the type, amount, standard and payment method of the fees charged by the franchisor and the third party cannot be disclosed, the reasons shall be explained; If the charging standards are not uniform, the highest and lowest standards shall be disclosed and the reasons shall be explained.

2 deposit collection, return conditions, return time and return method.

3. Where the franchisee is required to pay the fee before the franchise contract is concluded, the purpose of the fee and the conditions and methods of refund.

(4) The prices and conditions of products, services and equipment provided to the franchisee.

1. Whether the franchisee must purchase products, services or equipment from the franchisor (or its related parties) and related prices and conditions, etc.

2. Whether the franchisee must purchase products, services or equipment from suppliers designated (or approved) by the franchisor.

3. Whether the franchisee can choose other suppliers and the conditions that suppliers should have.

(5) Providing services to the franchisee continuously.

1. Specific content, delivery method and implementation plan of business training, including training place, method and duration.

2. The specific content, provision method and implementation scheme of technical support, including the name and category of business resources and the types of products, facilities and equipment.

(six) the way and content of guiding and supervising the franchisee's business activities.

1. The specific content, provision mode and implementation plan of the business guidance, including site selection, decoration, store management, advertising, product configuration, etc.

2. The way and content of supervision, the obligations that the franchisee should perform and the responsibilities for non-performance.

3. Division of responsibilities between franchisers and franchisees for consumer complaints and compensation.

(seven) the investment budget of the franchise outlets.

1. The investment budget can include the following expenses: initial expenses; Training fee; Real estate and decoration expenses; Equipment, office supplies, furniture and other purchase expenses; Initial inventory; Water, electricity and gas costs; Fees for obtaining licenses and other government approvals; Start working capital.

2. Data sources and estimation basis of the above expenses.

(8) The relevant information of the franchisee in China.

1. Information such as the number of existing and expected franchisees, geographical distribution, scope of authorization, whether there is an exclusive authorization area (if there is, the expected specific scope shall be specified).

2. The operating conditions of the existing franchisee, including the actual investment amount, average sales volume, cost, gross profit and net profit of the franchisee, and explain the source of the above information.

(9) A summary of the financial and accounting reports of the franchisor in the last two years and an audit report audited by an accounting firm or an audit firm.

(ten) the franchisor's litigation and arbitration related to franchising in the last five years, including the cause of action, litigation (arbitration) request, jurisdiction and results.

(eleven) the major illegal business records of the franchisor and its legal representative.

1. was fined by the relevant administrative law enforcement departments for more than 300,000 yuan.

2. Being investigated for criminal responsibility.

(12) The text of the franchise contract.

1. Sample franchise contract.

2. If the franchisor requires the franchisee to sign other franchise contracts with the franchisor (or its related parties), it shall also provide samples of such contracts.

Article 6 Franchisors shall not cheat or mislead in promotional activities, and the published advertisements shall not contain the contents that publicize the personal interests of franchisees engaged in commercial franchise activities.

Article 7 Before disclosing information to the franchisee, the franchisor has the right to require the franchisee to sign a confidentiality agreement.

No matter whether the franchise contract is established or not, the business secrets known by the franchisee in the process of concluding the contract shall not be disclosed or improperly used.

After the termination of the franchise contract, if the franchisee knows the business secrets of the franchisor because of the contractual relationship, he shall bear the confidentiality obligation even if no confidentiality agreement is concluded after the termination of the contract.

Where a franchisee violates the provisions of the preceding two paragraphs of this article by disclosing or improperly using trade secrets, thus causing losses to the franchisor or others, it shall bear the corresponding liability for damages.

Article 8 After the franchisor discloses the information to the franchisee, the franchisee shall issue a receipt statement (in duplicate) to the franchisor for the information it knows, which shall be signed by the franchisee, one of which shall be kept by the franchisee and the other by the franchisee.

Article 9 If the franchisor conceals information that affects the performance of the franchise contract, so that the purpose of the contract cannot be achieved or false information is disclosed, the franchisee may terminate the franchise contract.

Article 10 Where a franchisor violates the relevant provisions of these Measures, the franchisee has the right to report to the competent commercial department. If it is verified, it will be punished according to Articles 26, 27 and 28 of the Regulations.

Article 11 The Ministry of Commerce of People's Republic of China (PRC) shall be responsible for the interpretation of these Measures.

Article 12 These Measures shall come into force as of 20 12 and1April 20. The original Measures for the Administration of Information Disclosure of Commercial Franchise (OrderNo. 16 of the Ministry of Commerce in 2007) shall be abolished at the same time.