Documentation for a PRC Franchise Operation

This article is intended to provide a general guide to the subject matter. Specific advice should be sought about individual circumstances. Further information or advice may be obtained from Linklaters & Paines, Hong Kong office, 14th Floor, Alexandra House, Chater Road, Hong Kong; telephone: (852) 2842 4888; fax: (852) 2810 8133; contact David Mullarkey or Jeremy Parr.

The following documentation generally will be required in the establishment of a franchise operation in the PRC.

1. Letter of intent. Although not required by law, a simple pre-contract letter of intent will be useful since this may contain a binding confidentiality clause in respect of knowhow passed to the franchisee candidate in the course of the negotiation of the definitive agreements. See comments in paragraph 2(j) below.