In February China worked out the first "Franchise Management Byelaw for Business", and it has begun to formally carry out from May 1, 2007.
It mainly contains the authorization system of "2 franchise shops each year", the record system of franchise shops includes legal persons, and the system of information disclosure. This byelaw will efficiently standardize Chinese franchise trade.
In addition, this byelaw has special stipulations like franchise enterprises are forbidden to mislead the merchandisers who will join the alliance; violators will be fined from RMB30,000 to RMB300,000.
By the end of 2005, China had 2320 franchise enterprises which owned about 160,000 franchise shops, a total of over 60 industries were involved, like retail trade, laundry trade, clothing and textile trade.
Fibre2fashion News Desk - China
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