Sunday, June 3, 2012
2012 China Car Rental Industry Development Analysis and Forecast Report
2012 China Car Rental Industry Development Analysis and Forecast Report
[Report Title]: 2012 China Car Rental Industry Development Analysis and Forecast Report
[Keywords]: Car Rental
[Delivery]: EMAIL
INTRODUCTION:
The industry research report is an interpretation and forecasting of China car rental industry's present situation , designed to help the clients who have already get into or be about to get into China market to understand China car rental industry operation status , to make the right investment and management decisions.
The industry research report contains industry's fundamental conditions , integrated development environment , the industrial overall economic operation , main products' market supply and demand , the whole industry competition landscape , the industry chain and sub-industry, industry development trends, and so on.
The report based on the data and materials of National Bureau of statistics, the data of State Information Center , the data of industry associations, the data of General Administration of customs , the data of Ministry of Commerce and the data of other authoritative professional research institutions , combined with a lot of one hand survey data materials , it has great reference value for enterprises and investors.
[REPORT CONTENTS]
Chapter 1 Basic situation of car rental industry
Section 1 Definition of car rental industry
1. Industry's definition
2. Industry's classification
Section 2 Industry's position in the national economy
Section 3 PEST analysis of car rental industry
1. Economic environment analysis
2. Policy environment analysis
3. Social environment analysis
4. Technical environment analysis
Chapter 2 2010-2012 Overall economic operation of car rental industry
Section 1 Overall situation of production
Section 2 Overall situation of sales
Section 3 Overall price trends
Section 4 Overall operating condition
Section 5 Overall situation of import and export
Section 6 Investment in fixed assets
Section 7 Brief situation of raw material market operation
Section 8 The domestic enterprises' business status and entrepreneur information index
Chapter 3 Analysis of mainly car rental products' market supply and demand
Section 1 Production situation of main products
Section 2 Production situation of the key manufacturers of car rental
Section 3 Sales situation of main products
Section 4 Business condition of main enterprises
Chapter 4 2012 Competition situation analysis of car rental industry
Section 1 Analysis of the entry barriers and exit barriers of car rental industry
Section 2 Market concentration analysis of car rental industry
Section 3 Analysis of regional competition pattern of car rental industry
Section 4 2012 Key enterprises analysis of car rental industry
1. 2012 Integrated ranking and each index ranking of listed companies in the industry.
(1) Ranking of total assets
(2) Ranking of main business income
(3) Ranking of net profit
(4) Ranking of net profit's growth rate
(5) Integrated ranking
2. Introduction of key enterprises
(1) Enterprise A
(2) Enterprise B
(3) Enterprise C
...
Chapter 5 2012 Analysis of industry chain and sub-industry development of car rental industry
Section 1 Industry chain analysis of car rental industry
1. Analysis of upstream industry
2. Analysis of downstream industry
Section 2 Development analysis of sub-industries of car rental industry
1. Development analysis of sub-industry A
2. Development analysis of sub-industry B
3. Development analysis of sub-industry C
4. Development analysis of sub-industry D
...
Chapter 6 Development trends forecast of car rental industry
Section 1 Trends forecast of policy change
Section 2 Trends forecast of cost and price
Section 3 Trends forecast of supply and demand
1. Supply forecasting
2. Demand forecasting
Section 4 Prediction of the trends of import and export
1. Prediction of total import volume and export volume
2. Import forecast
3. Export forecast
Section 5 Trends forecast of technology and product development
Section 6 Trends forecast of regional development
Charts:
Chart Classification of car rental industry
Chart car rental industry's output value proportion in GDP recent years
Chart 2008-2012 China GDP and the cumulative growth
Chart Recent related industrial policies of car rental industry
Chart 2008-2012 Industry scale index of car rental
Chart 2008-2012 Product yield of car rental
Chart 2012 Quarterly price changes of car rental main products
Chart 2008-2012 Investment in fixed assets of car rental industry
Chart 2008-2012 Output value of car rental industry
Chart 2008-2012 Sales revenue analysis of car rental industry
Chart 2008-2012 Production and marketing rate of car rental industry
Chart 2012 Investment structure diagram of car rental industry
Chart 2008-2012 Output value concentration of China car rental industry
Chart 2008-2012 Sales income concentration of China car rental industry
Chart 2010 Product structure's ratio map of China car rental industry
Chart 2008-2012 Total asset concentration of China car rental industry
Chart 2008-2012 Total profit concentration of China car rental industry
...
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Wednesday, May 30, 2012
5 tips to invest and do business in China
1. Have clear understanding of China
It is essential to understand the culture of the country before investing in it. Understanding China is vital as China is a land of vast diversity. As such it is important for the company to understand the culture and the society’s values before establishing operations in China. Only through understanding the culture and values strong foundations can be built and higher chance of success can thus be achieved.
2. Understand local business practices
Given China’s distinct culture differences from the rest of the world, understanding China’s business culture is extremely crucial. What works in one’s country will not be applicable at all in China. Understanding how the local people think and their business practices can allow one to engage better and faster with them. Original organizational culture and practices may have to change in order to accustom to China’s practices. Thus flexibility and adaptability is the key for any organization to be successful in China.
3. Acquire local knowledge and establish local presence
Establishing a representative office in conjunction with a strong domestic private sector partner that has access to all necessary information and contacts in their field is the widely practiced formula practiced by foreign firms who already enjoyed success in China. Another way will be through setting up joint venture. Most importantly it has to be the selection of the correct partner. Finding the right partner may require more time, patience and experience but it is never a hassle to spend more efforts in choosing the partner because a wrong partner will definitely guarantees failure. Chinese expertise and local talent must also be incorporated into management or consulted during decision-making since local knowledge is essential as a source of information, access to networks and social and cultural learning, especially in China.
4. Need for establishing business relationships
Guanxi (relationship) is an important element in achieving successful business in China. Top management must learn to nurture close relationships with their local counterparts. This not only helps them to understand the Chinese domestic market, but also creates avenues for help in times of trouble or in need of assistance. Building strong relationships with business partners can aid in mitigating strategic and operational risks.
5. Establish close relations with government officials
Because the China government plays an important role in influencing market movement and administering foreign investments, a strong government relationship remains an important factor to do business successfully in China. Fewer hiccups may be met during paperwork applications or achieving local authorization if a strong relationship with government officials is in place.
Contact info:
Email: en@chinacir.com.cn
chinacirmo@gmail.com
Tel:+86-10-82250824
+86-10-82252636
MSN: chinacir2012@hotmail.com
Guide to franchising in China
With China’s opening of its market and recent succession into the WTO, it has undergone rapid development in the past two decades. Due in part to such growth and in combination with its massive 1.3 billion population (330 million in its middle-class alone as compared to America’s total population of 300 million), it represents the world’s largest yet ‘untapped’ consumer market. For many franchisors seeking to market reliability associated with brand recognition and systematic organizational structures to the oftentimes chaotic and fragmented consumer sector (particularly the food and personal service industries), China will be both the largest yet most challenging opportunity in the 21st century.
Fortunately for both consumers and those in the franchising industry, 2007 arguably brought about the largest liberalization of this sector since the “Opening Up” reforms of 1979.That being said, however, foreign franchisors have, in the past, seen their share of successes and failures, many of whom have ‘stuck it out’ throughout China’s market changes to become a consumer household name, such as McDonald’s, KFC and Pizza Hut.
I. Development of the franchise market in China
In 1997, China’s Ministry of Internal Trade promulgated the Administration of Commercial Franchise Procedures (Trial Implementation and hereinafter “Franchise Procedures”) representing the first set of regulations directed at specifically addressing issues pertaining to the franchise sector. The Franchise Procedures introduced two types of franchises: i) direct franchising and ii) sub-franchising. The Franchise Procedures provided for the basic structure of current franchising laws, which requires the disclosure of material information to prospective franchisees and includes the following: basic information about the franchisor; operational results of the franchisor; financial results of its franchise outlets; fees and payment obligations; and, terms and conditions for goods and services provided to franchisees. The Franchise Procedures also established the quasi-governmental China Chain Store and Franchise Association (“CCFA”). (Note that the Franchise Procedures were interpreted as not being applicable to cross-border franchise operations.)
In 2004, as part of China’s accession into the World Trade Organization (WTO) and commitment to the principles therein, the Ministry of Commerce issued the Measures for the Administration of Franchise Operations (“Franchise Measures”) effective February 1st, 2005. The Franchise Measures were promulgated shortly after the Measures on the Administration of Foreign Investment in the Commercial Sector, which liberalized foreign investment in the retail and wholesale distribution industry. Unlike the Franchise Procedures, the Franchise Measures not only permit foreign investment in the franchising sector but also contain an entire chapter drafted exclusively for this purpose.
Much like the Franchise Procedures, the Franchise Measures focused largely on franchisor disclosure, but also included the “two-plus-one” requirement, which mandated franchisors to operate two company-owned stores in China prior to commencing franchising activities. Obviously, this has prevented many start-up franchisors from immediately commencing operations in China and was a disincentive for market entry. Moreover, the promulgation of the Franchise Measures and the requirement that all franchising operations be conducted only by PRC entities has effectively removed the alternative measures being used by foreign franchisors for many years, including licensing arrangements and international franchising agreements.There have, however, been recent modifications to the franchising framework with the promulgation of a number of new laws in 2007 which will be further discussed below.
II. Current Legal Framework and Franchising Structures in China
In May of 2007, MOFCOM replaced the Franchise Measures (2005) with the Regulations on the Administration of Commercial Franchises (“Franchise Regulations”). The Franchise Regulations, together with the MOFCOM-issued Administrative Measures for the Information Disclosure of Commercial Franchises (“Information Disclosure Measures”) and the Administrative Measures for Archival Filing of Commercial Franchises (“Archival Filing Measures”) currently govern franchising structures in China and set out the following requirements:
1. Definition and Applicability Scope of Commercial Franchises
Article 2 of the Franchise Regulations states that the regulations are applicable to all investors engaged in commercial franchise operations in China“Commercial Franchise” is defined in the Franchise Regulations as “business activities whereby a franchisor, through execution of agreements, allows a franchisee to use operational resources, such as a trademark, logo, patent, know-how and others which are owned by the franchisor [refers to legal (not natural) persons], and the franchisee conducts business under the unified business model in
accordance with the provisions of the contract and pays franchise fees to the franchisor.
2. Qualifications and the Two-Plus-One Rule
Franchisors must own a well-developed business model, and be capable of providing continued operational management, technical support, business training and other services to the franchisee.
Additionally, franchisors must own at least two company-owned stores for a period of at least one year. Noticeably missing is the phrase “in China”, which allows for new foreign entrants to immediately commence franchising activities in China.
3. Filing Requirements
Within fifteen days from executing the first franchise agreement, the franchisor must file with MOFCOM, specifically i) if the franchising activities take place within a single province, autonomous region or municipality under the central government (Beijing, Shanghai, and other major cities), then with the MOFCOM of that province, autonomous region or municipality under the central government; or ii) if franchising activities take place in more than one province, autonomous region or municipality, then at the national level MOFCOM.
Thereafter, the relevant MOFCOM will have ten days to properly file all completed filings, and publish them on its website. However, it is necessary to note that the franchisor must, within 30 days of any change potentially impacting the filing, apply for an alteration of its filings.
Franchisors must file the following:
1. Basic information about the commercial franchise;
2. Distribution information of franchised stores in China;
3. Franchisor’s Commercial Prospectus;
4. Copy of business license or enterprise registration;
5. Copies of certificates of trademarks, patents and other business resources related to franchise activities;
6. Sample franchise agreement;
7. Franchise operational manuals;
8. Marketing plan;
9. Written undertaking evidencing franchisor’s complies with the Qualifications and the Two-Plus-One Rule;
10. Certificate evidencing compliance with the Two-Plus-One rule, issued by the city level in China and, for franchisors using space outside of China, business certificates translated, notarized and authenticated by the Chinese embassy; and,
1. Other documents as required.
Completed filings may be cancelled in the event of any of the following occurrences:
1. Franchisor's business license was cancelled by the competent registration authority because of illegal operations;
2. MOFCOM receives a court order regarding the cancellation of the filing due to illegal operations of the franchisor;
3. Franchisor was discovered to have failed to disclose material information or provided false information; and,
4. Franchisor itself cancels the filing.
4. Disclosure of Information
The following materials must be provided to the prospective franchisee a minimum of thirty days prior to the signing of the Franchise Agreement:
1. Basic information on the franchisor and franchise activities:
a. Franchisor's name, address, contacts, legal representative, general manager, registered capital, scope of business, and the number of regular chains including their addresses and phone numbers;
1. Franchisor's business license was cancelled by the competent registration authority because of illegal operations;
2. MOFCOM receives a court order regarding the cancellation of the filing due to illegal operations of the franchisor;
3. Franchisor was discovered to have failed to disclose material information or provided false information; and,
4. Franchisor itself cancels the filing.
4. Disclosure of Information
The following materials must be provided to the prospective franchisee a minimum of thirty days prior to the signing of the Franchise Agreement:
1. Basic information on the franchisor and franchise activities:
a. Franchisor's name, address, contacts, legal representative, general manager, registered capital, scope of business, and the number of regular chains including their addresses and phone numbers;
a. A brief introduction to the commercial franchise activities of the franchisor;
b. Basic information on the archival filing of the franchisor;
c. If the franchisor's associated company provides products and services to the franchisee, the associated company's basic information must also be disclosed; and,
d. Information on any bankruptcy and/or application for bankruptcy of the franchisor or of its associated company in the preceding five years.
2. Basic information on the business resources of the franchisor
a. Information available on registered trademarks, company logos, patents, proprietary technologies, and business methods, etc;
b. If the owner of any of the above-mentioned business resources is the associated company of the franchisor, then the basic information of the associated company must also be disclosed (the franchisor is also required to explain how to manage the franchise system upon termination fo the license contract); and,
c. Information on the business resources of the franchisor (or its associated company) in relation to litigation or arbitration.
3. Basic information on franchise expenses:
a. If the type, amount, criteria and payment method of fees collected by the franchisor or on behalf of a third party cannot be disclosed, then the franchisor must explain the reason for the non-disclosure; if the fee collection standards are inconsistent, then the franchisor is required to disclose both the maximum and minimum standards, and explain the reason thereto;
b. The collection thereof, return conditions, return time, and return on investment; and,,
c. If the franchisee is required to pay a fee before the Franchise Agreement is concluded, then the franchisor must explain in writing the use of the fee and the conditions and method of return.
4. Information on the prices and conditions of the products, services and equipment provided to the franchisee.
a. Whether the franchisee must purchase products, services or equipment from the franchisor (or its associated company), including the prices and conditions thereof;
b. Whether the franchisee must purchase products, services or equipment from the suppliers appointed or approved by the franchisor; and,Whether the franchisee has the discretion to choose its own
a. suppliers and the standards for the selection of its suppliers.
5. Information on the continuous provision of services to the franchisee.
a. Detailed content, manner of provision and implementation plans for professional training, including the training location, approach and duration; and,
b. Details regarding technical support and a catalogue of the operation manual of the franchise including the number of pages therein.
6. Methods and content of guidance and supervision over the franchise activities of the franchisee:
a. The franchisor's methods and content of guidance and supervision over the franchise activities of the franchisee, the franchisee's obligations and consequences for failing to fulfill them.
b. Whether the franchisor is jointly liabile with the franchisee for complaints by and compensation to consumers, and how to share such liability.
7. Information on the investment budget of the franchise:The expenditure fpr the investment budget may include the following: initial fee; training fee; real estate and decoration fee, procurement fee fpr equipment, office supplies,
a. furniture, etc; initial inventory; water, electricity and gas fees; fees needed to obtain licenses and other governmental approvals; and working capital; and,
b. The statistical source and estimation basis for the above-mentioned fees.
8. Information on franchisees within China:
a. Information on the present and estimated number of franchisees, geographical distribution, scope of license, and as to whether or not they are subject to an exclusive regional license (if so, details of the scope thereof must also be explained)
b. Information on the evaluation of the performance of the franchisee, the actual or estimated average sales volume, costs, gross and net profits of the franchisee, the source of the above-mentioned informationduration of and franchise networks involved (if the information is speculative, then the franchisor shall explain the basis for its speculation, and specify that the actual performance of the franchisee may differ from its speculation.
9. Abstracts of the franchisor's financial and accounting reports and of the audit reports in the last two years audited by the accounting or auditing firms.
10. Information on any major litigation or arbitration involving any franchises of the franchisor in the last five years.
a. Major litigation or arbitration refers to litigation and arbitration involving litigation fees of more than RMB 500, 000; and,
b. Basic information as to the location of the litigation or arbitration and the judgment or award must also be disclosed.
11. Information on any record of major illegal operations of the franchisor and its legal representative.
a. Where either the franchisor or its legal representative has been imposed with a fine, by the competent administrative law enforcement authorities, exceeding not less than 300, 000 but more than 500, 000; and,
b. Where the franchisor and its legal representative have been subject to criminal penalization.
12. Franchise Contract
a. Sample franchise contract; and
b. If the franchisor requires its franchisee to sign with the franchisor (or its associated company), other franchise contracts (sample contract shall be provided at the time of contracting).Note that where the franchisor is found to have concealed or provided false information, the
franchisee may rescind the Franchise Agreement.
5. Franchise Agreement
Although franchise contracts are in practice comprehensive and lengthy, the Franchise Regulations require certain clauses be provided in the relevant franchise agreement:
1. basic information on the franchisor and franchisee;
2. content and term of the franchise;
3. types, amounts and payments of franchise fees;
4. specific content and manner of provision of operational guidance, business training, technical and other services to franchisee;
5. quality standards, quality control measures for the provision of products and services by franchise operations;
6. promotions and advertisements of products and services of franchise operations;
7. arrangements for consumer rights, and assignment of liability in franchise operations;
8. amendment, rescission and termination of the franchise agreement;
9. liability for breach;
10. dispute resolution; and
11. other matters as agreed upon between the franchisor and franchisee.
The Franchise Regulations also require the contract contain a clause setting out the time period during which the franchisee may rescind the agreement (post- execution of the contract). Unless otherwise specified, the initial term of the contract must not be less than two years.
Further, where deposits or other fees are required prior to execution of the franchising agreement, provisions for the use and refund of the same must be expressly stated therein.
Advertising and promotional fees collected by the franchisor must be used specifically for such stated purposes and accounting thereof should be provided to the franchisee within a timely basis.
The franchisor is required to report annually, by March 31, the status of each franchise agreement.
6. International/Cross-Border Franchising
International or cross-border franchisors must file, in accordance with the Archival Filing Measures.
7. Penalties
Penalties for the violation of the Regulations are as follows:
1. Failure to meet Qualifications (see Item 2): confiscation of illegal income, and fine of RMB 100,000 to RMB 500,000;
c. If the franchisor's associated company provides products and services to the franchisee, the associated company's basic information must also be disclosed; and,
d. Information on any bankruptcy and/or application for bankruptcy of the franchisor or of its associated company in the preceding five years.
2. Basic information on the business resources of the franchisor
a. Information available on registered trademarks, company logos, patents, proprietary technologies, and business methods, etc;
b. If the owner of any of the above-mentioned business resources is the associated company of the franchisor, then the basic information of the associated company must also be disclosed (the franchisor is also required to explain how to manage the franchise system upon termination fo the license contract); and,
c. Information on the business resources of the franchisor (or its associated company) in relation to litigation or arbitration.
3. Basic information on franchise expenses:
a. If the type, amount, criteria and payment method of fees collected by the franchisor or on behalf of a third party cannot be disclosed, then the franchisor must explain the reason for the non-disclosure; if the fee collection standards are inconsistent, then the franchisor is required to disclose both the maximum and minimum standards, and explain the reason thereto;
b. The collection thereof, return conditions, return time, and return on investment; and,,
c. If the franchisee is required to pay a fee before the Franchise Agreement is concluded, then the franchisor must explain in writing the use of the fee and the conditions and method of return.
4. Information on the prices and conditions of the products, services and equipment provided to the franchisee.
a. Whether the franchisee must purchase products, services or equipment from the franchisor (or its associated company), including the prices and conditions thereof;
b. Whether the franchisee must purchase products, services or equipment from the suppliers appointed or approved by the franchisor; and,Whether the franchisee has the discretion to choose its own
a. suppliers and the standards for the selection of its suppliers.
5. Information on the continuous provision of services to the franchisee.
a. Detailed content, manner of provision and implementation plans for professional training, including the training location, approach and duration; and,
b. Details regarding technical support and a catalogue of the operation manual of the franchise including the number of pages therein.
6. Methods and content of guidance and supervision over the franchise activities of the franchisee:
a. The franchisor's methods and content of guidance and supervision over the franchise activities of the franchisee, the franchisee's obligations and consequences for failing to fulfill them.
b. Whether the franchisor is jointly liabile with the franchisee for complaints by and compensation to consumers, and how to share such liability.
7. Information on the investment budget of the franchise:The expenditure fpr the investment budget may include the following: initial fee; training fee; real estate and decoration fee, procurement fee fpr equipment, office supplies,
a. furniture, etc; initial inventory; water, electricity and gas fees; fees needed to obtain licenses and other governmental approvals; and working capital; and,
b. The statistical source and estimation basis for the above-mentioned fees.
8. Information on franchisees within China:
a. Information on the present and estimated number of franchisees, geographical distribution, scope of license, and as to whether or not they are subject to an exclusive regional license (if so, details of the scope thereof must also be explained)
b. Information on the evaluation of the performance of the franchisee, the actual or estimated average sales volume, costs, gross and net profits of the franchisee, the source of the above-mentioned informationduration of and franchise networks involved (if the information is speculative, then the franchisor shall explain the basis for its speculation, and specify that the actual performance of the franchisee may differ from its speculation.
9. Abstracts of the franchisor's financial and accounting reports and of the audit reports in the last two years audited by the accounting or auditing firms.
10. Information on any major litigation or arbitration involving any franchises of the franchisor in the last five years.
a. Major litigation or arbitration refers to litigation and arbitration involving litigation fees of more than RMB 500, 000; and,
b. Basic information as to the location of the litigation or arbitration and the judgment or award must also be disclosed.
11. Information on any record of major illegal operations of the franchisor and its legal representative.
a. Where either the franchisor or its legal representative has been imposed with a fine, by the competent administrative law enforcement authorities, exceeding not less than 300, 000 but more than 500, 000; and,
b. Where the franchisor and its legal representative have been subject to criminal penalization.
12. Franchise Contract
a. Sample franchise contract; and
b. If the franchisor requires its franchisee to sign with the franchisor (or its associated company), other franchise contracts (sample contract shall be provided at the time of contracting).Note that where the franchisor is found to have concealed or provided false information, the
franchisee may rescind the Franchise Agreement.
5. Franchise Agreement
Although franchise contracts are in practice comprehensive and lengthy, the Franchise Regulations require certain clauses be provided in the relevant franchise agreement:
1. basic information on the franchisor and franchisee;
2. content and term of the franchise;
3. types, amounts and payments of franchise fees;
4. specific content and manner of provision of operational guidance, business training, technical and other services to franchisee;
5. quality standards, quality control measures for the provision of products and services by franchise operations;
6. promotions and advertisements of products and services of franchise operations;
7. arrangements for consumer rights, and assignment of liability in franchise operations;
8. amendment, rescission and termination of the franchise agreement;
9. liability for breach;
10. dispute resolution; and
11. other matters as agreed upon between the franchisor and franchisee.
The Franchise Regulations also require the contract contain a clause setting out the time period during which the franchisee may rescind the agreement (post- execution of the contract). Unless otherwise specified, the initial term of the contract must not be less than two years.
Further, where deposits or other fees are required prior to execution of the franchising agreement, provisions for the use and refund of the same must be expressly stated therein.
Advertising and promotional fees collected by the franchisor must be used specifically for such stated purposes and accounting thereof should be provided to the franchisee within a timely basis.
The franchisor is required to report annually, by March 31, the status of each franchise agreement.
6. International/Cross-Border Franchising
International or cross-border franchisors must file, in accordance with the Archival Filing Measures.
7. Penalties
Penalties for the violation of the Regulations are as follows:
1. Failure to meet Qualifications (see Item 2): confiscation of illegal income, and fine of RMB 100,000 to RMB 500,000;
1. Franchising by individuals (natural person): confiscation of illegal income, and fine of RMB 100,000 to RMB 500,000;
2. Failure to complete Filing Requirements: order time limit for
rectification and fine of RMB 10,000 to RMB 50,000, and where franchisor
fails to file within the time limit a fine of RMB 50,000 to RMB 100,000
and public announcement; and,
3. Failure to provide Franchise Agreement thirty days prior to the signing or failure to disclose or concealing information relevant to the franchisee: fine of RMB 10,000 to RMB 50,000, or where serious RMB 50,000 to RMB 100,000 and public announcement thereof.
8. ‘Grandfathering’ ProvisionsCompanies already conducting franchising activities have one year to file according to the Franchise Regulation.
III. Conclusion
China represents a tremendous opportunity for international franchise operations. Although there are numerous challenges and complexities in establishment and operations, the recent legal changes have largely liberalized the franchising market for foreign investors. In combination with the current rates of economic growth, the timing is ideal for foreign franchisors to explore opportunities in the Chinese market.
Contact info:
Email: en@chinacir.com.cn
chinacirmo@gmail.com
Tel:+86-10-82250824
+86-10-82252636
MSN: chinacir2012@hotmail.com
3. Failure to provide Franchise Agreement thirty days prior to the signing or failure to disclose or concealing information relevant to the franchisee: fine of RMB 10,000 to RMB 50,000, or where serious RMB 50,000 to RMB 100,000 and public announcement thereof.
8. ‘Grandfathering’ ProvisionsCompanies already conducting franchising activities have one year to file according to the Franchise Regulation.
III. Conclusion
China represents a tremendous opportunity for international franchise operations. Although there are numerous challenges and complexities in establishment and operations, the recent legal changes have largely liberalized the franchising market for foreign investors. In combination with the current rates of economic growth, the timing is ideal for foreign franchisors to explore opportunities in the Chinese market.
Contact info:
Email: en@chinacir.com.cn
chinacirmo@gmail.com
Tel:+86-10-82250824
+86-10-82252636
MSN: chinacir2012@hotmail.com
China Real Estate Market - Conclusion
The late Chinese leader Deng Xiaoping liked to say: "touching the stones
while crossing the river" if you have no idea of how deep the water is.
China, like other emerging economies is a challenging place for foreign
companies due to some uncertainties and barriers. Without necessary
knowledge and preparations before entering into China, prospective
foreign companies may run risk of failure. On the other hand, China is
also a huge market filled with promises and potentials with its
one-fifth of the world's population and fast-growing economy. China is
the only economy that recorded over 7 percent increase for the first 6
months of 2002 while other major economies are either in recession or
slowing down. China's WTO entry at the end of 2001 will surely inspire
more hope and generate many opportunities that are needed in this
globally downward economy.
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