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Opportunities for Foreign Businesses Through China’s Franchising Law

Changes to the law create promising opportunities for foreign franchisors

China’s massive population and its shift toward a consumer economy have presented an enticing opportunity to franchisors for many years. However, confusing and contradictory laws governing Chinese franchises blocked the aspirations of many interested parties. Fortunately, revised statutes have made it much easier to make franchise investments for businesses with the right legal guidance. At Johnson Franchise Law, we have the knowledge and experience to help you take advantage of this rapidly growing market.

Skilled attorney advises on Chinese franchises statutes and procedures

Unlike in previous years, foreign-owned companies are now allowed to own and operate franchises rather than having to create a Chinese legal entity. Whether you seek to establish a business presence in China to conduct your operations or choose to forge an international agreement with a franchisee or master franchisee in the country, franchise lawyer Richard E. Johnson can give you an advantage at every stage of the process, including:

  • Registration and filings — Mainland Chinese law states that a commercial franchise is a form of business operation where an enterprise (the franchisor) allows another operator (the franchisee) to use the franchisor’s resources in accordance with terms set forth in a contract and in exchange for an agreed-upon fee. At least two stores must have been in operation for a year in order to establish a franchise. If your business is eligible, our firm will help you file the necessary establishment documents with the national and local governments.
  • Contracts with franchisees — Within 15 days of execution, an initial franchise contract must be recorded with the government. After that, annual updates regarding franchise agreements must be made.
  • Required information — General information regarding the franchise operation, sample contracts, authorizations from other jurisdictions and other information are to be submitted as part of the franchise approval process. Local authorities might have additional requirements. We will make sure that you have what you need to avoid unnecessary obstacles.

With more than 20 years of experience in the field, attorney Rick Johnson can explain the rules found in the Regulation on the Administration of Commercial Franchises and other relevant laws. Our firm can also manage communications and relationships with national and local authorities, as well as business partners.

Contact a respected franchise lawyer for assistance with a Chinese venture

Johnson Franchise Law assists clients with every aspect of domestic and international franchise development. If you’re looking to grow your business in China or anywhere else in the world, please call 770-529-2762 or contact us online. Our office is in Kennesaw, Georgia.