Ministry of Commerce, Measures for the Administration of Information Disclosure in Connection with Commercial Franchising (Revised)

商务部商业特许经营备案管理办法 (修订)

March 29, 2012 | BY

clpstaff &clp articles &

Franchisees required to undertake obligation of confidentiality.

Clp Reference: 5400/12.02.23 Promulgated: 2012-02-23 Effective: 2012-04-01

Promulgated: February 23 2012
Effective as of April 1 2012


Main contents: The revised Measures require a franchisor to disclose the actual investment amounts of its franchisees. Confidentiality requirements of franchisees are also elaborated. A franchisee may not disclose or improperly use trade secrets to which it was privy in the course of concluding a contract, regardless of whether the franchise contract is formed. After a franchise contract has terminated, the franchisee shall bear an obligation of confidentiality in respect of the franchisor's trade secrets to which it was privy as a result of the contractual relationship, even if it has not entered into a post-contract-termination confidentiality agreement. If a franchisee violates either of the two preceding paragraphs, by disclosing or improperly using trade secrets, thereby causing the franchisor or a third party to incur a loss, it shall be liable for the attendant damages (Article 7).


Repealed legislation: Measures for the Administration of Information Disclosure in Connection with Commercial Franchising, Apr 30 2007, CLP 2007 No.5 p.66

clp reference:5400/12.02.23promulgated:2012-02-23effective:2012-04-01

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