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Legal environment of China franchise

Franchise is an operation format closely related to law. Its healthy development calls for sound policy and law environment.

From current law-making situation of USA, Britain and EU that have developed franchise, we can find that franchise system is not an independent one all over the globe. Laws that adjust and regulate franchise relation scatter among Contract Law, Intellectual Property Law, Enterprise Law and others.

Our country started franchise for trial during the early 1990s. After a decade and more years, franchise has started to flourish. In the coming decades franchise will make greater development in China. However, we still don’t have any law specifically regulating franchise. The applicable laws include General Principles of the Civil Law, Contract Law, Trademark Law, Patent Law, Company Law, and Law Against Unfair Competition etc.

Adjusting franchise with many laws comprehensively is the natural result of complexity and diversification of franchise.

Ever since 1997, our country has issued more than ten regulations related to franchise and they are mainly documents issued by ministries and committees of the State Council. Those regulations have played somewhat important role in regulating franchise.

Source: GLOBAL BRAND FRANCHISE TRADE CENTER
Editor:
Date: 2007-9-6 14:14:00

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