Franchise Law in China: The Interpretation and Application of the 2007 Franchise Regulation

Abstract

The introduction of the franchising concept by the fast food franchising pioneers was a necessary step in the development of franchising in China but not the only step. The concept of franchising was unknown to the law and, without official recognition or a regulatory framework, franchising could not develop as a distinct and specialised business contract. The development of the legal and regulatory regime for franchising has been highly influential in the development of the franchising sector. This chapter reviews the development of the regulatory regime for franchising in China and examines the impact of the 2007 Franchise Regulation. It addresses franchise contract dispute cases and examines the application and interpretation of the 2007 Franchise Regulation by the courts.