China Franchising Indepth Research and Investment Strategy Planning Report, 2013-2017

Franchising refers to the practice of using another firm's successful brand, product and business model. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. As a new modern business model, franchising is widely regarded as an efficient management which adapts to the development of market economic and will better serve customers. By the transformation of intellectual property, it motivates all the advancing capitals and combines them in an optimized way.

Franchising refers to the practice of using another firm's successful brand, product and business model. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. As a new modern business model, franchising is widely regarded as an efficient management which adapts to the development of market economic and will better serve customers. By the transformation of intellectual property, it motivates all the advancing capitals and combines them in an optimized way.

After more than 100 years of practicing in western developed countries, franchising successfully turns to be the practical choice for brand giants like Coca Cola, McDonald, Kodak, Ford, Wal-Mart, 7-Eleven stores, the Hilton Hotel, Walt Disney World, the 21st Century Real Estate, NAPA and the ET Education. What’s more, it provides a short cut for grow of global small and medium size corporations and individual pioneering.

Since the implementation of

Regulations on Franchising on 1st May, 2007 in China, there are 1,290 franchising corporations by the end of 2009. Among which there are 1,040 inter-provincial operating corporations and 250 provincial operating corporations. New open franchising corporations in 2009 reach 248, among which the inter-provincial corporations are 206 and provincial corporations are 42. It covers more than 30 industries, such as Catering, laundry, retail, education and hotel, and distributes in more than 28 provinces, autonomous regions and directly governed cities, such as Beijing, Chongqing, Shanghai and Guangdong.

By 2010 number of franchising in China has exceed 4,500 and franchisees were more than 400,000. It covers more than 70 industries and directly provides more than 5,000,000 new jobs.

Here, we’d like to express our sincere gratitude to National Bureau of Statistics of China, International Information Institute, National Institute of the Ministry of Commerce, National Tsing Hua University Library, Institute of Market Economy of the State Council Development Research Center, and Beijing Qinghua Forward Market Research Center, etc. Thank you so much!

Notice: all the market data, especially the corporation list data in this report is only for business reference. Please don’t take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Franchising