China's New Franchising Regime

June 02, 2007 | BY

clpstaff &clp articles

New regulations on commercial franchises should contribute to making the mainland a much more accessible market for international franchisors. What are the new rules, and what questions regarding franchises remain unanswered?

By Janet Jie Tang and Lu Ning of DLA Piper

The Chinese government recently adopted a new legal regime for franchising. The new regime consists of the Regulations for the Administration of Commercial Franchising (商业特许经营管理条例)(the Franchise Regulations) promulgated by the State Council on January 31 2007 and effective on May 1 2007, together with the Measures for the Administration of Record Filings in Connection with Commercial Franchising (the Filing Rules) and the Measures for the Administration of Information Disclosure in Connection with Commercial Franchising (the Disclosure Rules), both issued by the Ministry of Commerce (MOFCOM) on April 30 2007 and effective on May 1 2007. This new legal regime replaces the previous franchise rules issued by MOFCOM in 2005 (the MOFCOM Measures).

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