Commercial Franchise Administration Regulations

It was not until the 1990s that the franchised business model was recognised in China as an official form of doing business. Now, three years after the introduction of the Commercial Franchise Administration Regulations, China is emerging as one of the fastest growing markets for franchised retail brand development.

In the last decade, the growth of franchising in China has been stimulated by the liberalisation of foreign investment, and the introduction in May 2007 of a comprehensive franchise law - the Commercial Franchise Administration Regulations - which replaced what had previously been a chaotic regulatory system.

The validity of expansion in China through franchising is highlighted by the aggressive expansion plans announced by a number of Western franchise systems for 2010.