China now has more than 4,500 franchise systems, more than any other country in the world. However franchising in China is still in a growth stage and there are a number of abuses and complaints that are too common.\u00a0<\/p>\n
On January 10, 2012 MOFCOM issued the \u201c\u5173\u4e8e \u2018\u5341\u4e8c\u4e94\u2019 \u671f\u95f4\u4fc3\u8fdb\u5546\u4e1a\u7279\u8bb8\u7ecf\u8425\u5065\u5eb7\u53d1\u5c55\u7684\u6307\u5bfc\u610f\u89c1\u201d or \u201cGuidance on the Promotion of the Healthy Development of the Commercial Franchising in accordance with the Five Year Plan<\/strong>.\u201d<\/p>\n In Chinese: http:\/\/www.mofcom.gov.cn\/aarticle\/b\/d\/201201\/20120107921658.html<\/a><\/p>\n To improve the situation MOFCOM proposes to improve the currency of its information systems, including the web site; and to increase its enforcement efforts, including violations of trade secrets and intellectually property rights and the Commercial Franchise Regulations. They also want to increase the registration rate for franchisors. It is suspected that a large number of franchisors in China, and in particular foreign franchisors, have not registered as required with MOFCOM.<\/p>\n Specifically on enforcement they plan to make greater use of the resources of the local commerce departments. Our firm has already experienced the results of this new policy. We recently filed a complaint about a competitor of one of our clients who was franchising without registering. We soon received a copy of a letter from MOFCOM to the local commerce department requiring them to conduct an investigation to confirm our allegations, and to report by a specific date.<\/p>\n MOFCOM also plans to work on revisions to the main \u201cCommercial Franchise Administrative Regulations\u201d from the State Council and MOFCOM\u2019s \u201cCommercial Franchise Information Disclosure Administrative Measures,\u201d and to introduce dispute resolution mechanisms.\u00a0<\/p>\n Revised Version of the Franchise Registration Measures Issued<\/strong><\/p>\n Earlier on December 21, 2011 MOFCOM released a revised version of the \u5546\u4e1a\u7279\u8bb8\u7ecf\u8425\u5907\u6848\u7ba1\u7406\u529e\u6cd5 (Commercial Franchise Registration Administrative Measures) to come into effect \u00a0February 1, 2012.<\/p>\n In Chinese :<\/strong> http:\/\/www.mofcom.gov.cn\/aarticle\/b\/c\/201112\/20111207890529.html<\/a><\/p>\n