Measures made a definition of franchise, and it regulated conditions of franchisors, qualifications of franchisees, rights and duties of both franchisors and franchisees, basic form of franchise, basic contents of franchise contract, categories of fees that franchisee is entitled to hand in to the franchisors. Measures also regulated that a franchise contract must to be signed if franchise activity is to be carried out.

Measures comply with all the enterprises, individuals and other economic entities engaging in commercial franchise with territory of China.

In all the documents related to franchise issued by all ministries and committees of the State Council, Measures is the only one that gives an accurate definition of franchise. There are other eight similar policies and regulations related to franchise such as Regulating Proposals on Franchise Management, which regulates franchise from aspects like commercial registration, accounting management, value added tax, product category, approval of trade mark and file for record. Those regulations, though not targeting franchise exclusively, are applicable to franchise enterprises, too. Those documents conform the legitimization of franchise and play a positive role in regulating and promoting franchise.