The China market has been increasingly attractive to international franchise businesses. The whole market is growing amazingly at a year-on-year rate of 40-50%. As a desirable franchisor destination, China has 300 foreign companies waiting to enter the market

In the legal and policy aspect, “Regulations on Management of Commercial Franchise Operation” was released in February, 2007 and came into effect on May 1st, 2007. The Regulation, based on the previous “Franchising Measures”, has re-defi ned the “2 stores and 1 year” (two direct stores run at least one year) requirement, relaxing the qualifi cation for foreign franchisors to do business in China, and has detailed the specific franchise operation processes including the license application, information disclosure, etc. This new regulation is regarded as a manifesto of the Chinese Government’s determination to develop franchising business in China.

From the market perspective, franchising business has roused the interest of more and more powerful local businesses with solid governmental background, which ensures enough qualifi ed prospective franchisees for foreign franchisors to

seek when entering the China Market. Meanwhile, if you intent to set up franchises in China independently, China is also one of the emerging and most potential markets with rapid growth.

At present, China's franchise has covered most of the sectors of the global franchise system, thanks to its booming market with enormous potentials. With improvement on its legal, regulation and supervision systems, the China Market is becoming another hot spot for developing franchising business.