Order of the State Council
No. 485
The Regulations on Administering Commercial Franchises have been adopted at the 167th executive meeting of the State Council on January 31, 2007. They are hereby promulgated and shall go into effect on May 1, 2007.
Premier Wen Jiabao
February 6, 2007
Regulation on Administering Commercial Franchises
Chapter I General Rules
Article 1 For the purpose of regulating commercial franchises, promoting the healthy and orderly development of the commercial franchise industry and maintaining the market order, the present Regulations are formulated.
Article 2 The present Regulations shall apply to the activities of engaging in commercial franchise within the territory of the People's Republic of China.
Article 3 The term "commercial franchise" (hereinafter referred to as "franchise") as mentioned in the present Regulations means such business operations by which an enterprise that possesses a registered trademark, enterprise mark, patent, know-how or any other business resource (hereinafter referred to as "franchiser") confers the aforesaid business resource to any other business operator (hereinafter referred to as "franchisee") through contract, and the franchisee conducts business operations under the uniform business model as stipulated by the contract, and pay franchising fees to the franchiser.
No entity or individual other than enterprises may conduct franchise business as a franchiser.
Article 4 For engagement in franchise activities, the principles of free will, fairness, honesty and good faith shall be followed.
Article 5 The commerce department under the State Council shall take charge of supervising and administrating the franchise industry all over the country in accordance with the present Regulations. The commerce department of each province, autonomous region, or municipality directly under the Central Government and the commerce department of the people's government of the cities divided into districts shall take charge of supervising and administrating the franchise industry within its own jurisdiction in accordance with the present Regulations.
Article 6 Any entity or individual is entitled to tip off any act with violation of the present Regulations to the commerce department, and the commerce department shall, after receiving such tip-off, handle it promptly.
Chapter II Franchised Operations
Article 7 For engaging in franchise activities, a franchiser shall have a mature business model and be capable of providing the franchisee with consecutive business guidance, technical support, business training and other services.
A franchiser for engaging in franchise activities shall have two direct sales stores at least, and have conducted such business for more than one year.
Article 8 A franchiser shall, within 15 days after the subscription of a franchise contract for the first time, submit it to the commerce department for archival filing in accordance with the present Regulations. In case a franchiser engages in any franchised operations within the scope of a province, autonomous region, or municipality directly under the Central Government, it shall report to the commerce department of the province, autonomous region or municipality directly under the Central Government for archival filling; and in case a franchiser engages in any franchised operations within the scope of two or more provinces, autonomous regions, or municipalities directly under the Central Government, it shall report to the commerce department under the State Council for archival filling.
A franchiser shall, for the archival filing, submit the commerce department the following documents and materials:
(1) a copy of the business license or enterprise registration certificate;
(2) a sample of the franchise contract;
(3) a brochure for franchised operations;
(4) a market plan;
(5) a written commitment and related certification materials testifying that the provisions in Article 7 of the present Regulations are satisfied ; and
(6) other documents and materials as prescribed by the commerce department under the State Council.
Where the product or service for franchise cannot be dealt in until it is approved, the franchiser shall also submit a related approval document.
Article 9 The commerce department shall conduct the archival filing and notify the franchiser within 10 days after its receipt of the documents and materials as provided for in Article 8 of the present Regulations. Where the documents or materials reported by the franchiser are incomplete, the commerce department may require the franchiser to supplement related documents or materials within 7 days.
Article 10 The commerce department shall publish a name list of franchisers, which have been put on archives, on the government website, and timely renew the name list.
Article 11 For engaging in franchise activities, the franchiser and the franchisee shall conclude a written franchise contract.
A franchise contract shall cover the main contents as follows:
(1) basic information in respect of the franchiser and the franchisee;
(2) contents and term of the franchise;
(3) type, amount and payment method for the franchising fees;
(4) concrete contents and methods for providing business guidance, technical support, business training and other services;
(5) quality, standards for the product or service and guaranty measures;
(6) sales promotion, advertising and publicity in respect of the product or service;
(7) the protection of consumers' rights and interests and the assumption of compensation liabilities in the franchise;
(8) alteration, release and termination of the franchise contract;
(9) liabilities for breach of the contract;
(10) dispute resolution methods; and
(11) other matters as agreed upon by the franchiser and the franchisee.
Article 12 It shall be stipulated in the franchise contract concluded between the franchiser and the franchisee that the franchisee may unilaterally terminate the contract within a certain term after the franchise contract has been signed.
Article 13 Unless it is otherwise agreed upon by the franchisee, the franchise term as stipulated in the franchise contract may not be less than three years.
When the franchiser and the franchisee renew the franchise contract, the preceding paragraph may not apply.
Article 14 A franchiser shall provide its franchisees with a brochure for franchised operations, and shall continuously provide business guidance, technical support and business trainings, etc. to the franchisees in accordance with the stipulated contents and methods.
Article 15 The quality and standards of the product or service for franchise shall comply with the laws, administrative regulations and the related requirements of the State.
Article 16 Where a franchiser requires a franchisee to pay expenses before the subscription of the franchise contract, it shall explain to the franchisee in respect of the purposes of these expenses and the conditions and method for the refund of these expenses in written form.
Article 17 The promotion and publicity expenses as collected by a franchiser from a franchisee shall be used for the purposes as agreed upon in the contract. The information in respect of the use of promotion and publicity expenses shall be released to the franchisee in a timely manner.
A franchiser may not resort to frauds or misleading in the promotion or publicity, and the advertisements it publicized may not include any publicity content that any franchisee has gained proceeds from engaging in the franchise.
Article 18 A franchisee may not transfer the franchise to anyone else without consent of the franchiser.
A franchisee may not divulge the business secret of the franchiser to which it has accessed to anyone else or allow anyone else to use it.
Article 19 A franchiser shall report to the commerce department the information in respect of the subscription of franchise contracts in the previous year in the first quarter every year.
Chapter III Information Disclosure
Article 20 A franchiser shall set up and carry out a perfect information disclosure system in accordance with the provisions as prescribed by the commerce department of the State Council.
Article 21 A franchiser shall provide the franchisee with the information as prescribed in the present Regulations and the text of the franchise contract in written form at least 20 days before the subscription of a franchise contract.
Article 22 A franchiser shall provide the franchisee with the information as follows:
(1) the name, domicile, legal representative, registered capital, business scope of the franchiser and basic information in respect of the franchised operations;
(2) the basic information in respect of the registered trademark, enterprise mark, patent, know-how and business model of the franchiser;
(3) type, amount of franchising fees and payment method (including whether the guaranty bonds should be collected as well as the conditions and methods for refunding guaranty bonds);
(4) prices and requirements for providing the franchisee with products, services and equipments;
(5) specific contents of business guidance, technical support, business training and other services to be continuously provided to the franchisee as well as the providing methods and implementation plans;
(6) concrete measures for guiding and supervising the business activities of the franchisee;
(7) the investment budget for the franchise outlet;
(8) the quantity, distribution and business evaluation of franchisees currently existing within the territory of China;
(9) digests of the financial statements and audit reports for the recent two years as audited by the accountant firm;
(10) the conditions in respect of franchise-related lawsuits and arbitration for the recent five years;
(11) in case the franchiser or its legal representative has any record of major illegal business operations; and
(12) other information as prescribed by the commerce department under the State Council.
Article 23 A franchiser shall provide its franchisees with authentic, accurate and complete information, and may not conceal any related information or provide false information.
Where any significant change has occurred to the information provided by a franchiser to any of its franchisees, the franchiser shall timely notify it to the franchisee.
If a franchiser conceals any related information or provides false information, the franchisee may terminate the franchise contract.
Chapter IV Legal Liabilities
Article 24 Where a franchiser does not satisfy the requirements as prescribed in Paragraph 2 of Article 7 of the present Regulations but engages in the franchise activities, the commerce department shall order it to make corrections, confiscate its illegal proceeds, impose a fine of more than 100,000 Yuan but less than 500,000 Yuan thereon, and make an announcement in respect of it.
Where an entity or individual, which does not possess an enterprise statues, engages in franchise activities as a franchiser, the commerce department shall order it/him to cease the illegal business operations, confiscate its/his illegal proceeds, and impose a fine of more than 100,000 Yuan but less than 500,000 Yuan thereon.
Article 25 Where a franchiser fails to put itself on the archives of the commerce department in accordance with Article 8 of the present Regulations, the commerce department shall order it to do so within a fixed period, and impose a fine of more than 10,000 Yuan but less than 50,000 Yuan thereon; and in case it fails to do so within the fixed period, it shall be fined more than 50,000 Yuan but less than 100,000 Yuan, and an announcement shall also be delivered.
Article 26 Where a franchiser violates Article 16 or 17 in the present Regulations, the commerce department shall order it to make corrections, and may impose a fine of less than 10, 000 Yuan; in the case of serious circumstances , it shall be fined more than 10,000 Yuan but less than 50,000 Yuan, and an announcement shall also be delivered.
Article 27 Where a franchiser violates Paragraph 2 of Article 17 in the present Regulations, the commerce department shall order it to make corrections, and impose a fine of more than 30,000 Yuan but less than 100,000 Yuan thereon; in the case of serious circumstances, it shall be fined more than 100,000 Yuan but less than 300,000 Yuan, and an announcement shall also be delivered; and if a crime is committed, it shall be subject to criminal liabilities.
Where a franchiser conducts frauds or misleading by making use of advertisements, it shall be punished in accordance with the related provisions in the Advertising Law.
Article 28 Where a franchiser violates Article 21 or 23 of the present Regulations, and a franchisee tips it off to the commerce department and, upon verification, the tip-off is found to be true, the commerce department shall order the franchiser to make corrections and impose a fine of more than 10,000 Yuan but less than 50,000 Yuan thereon; and in the case of serious circumstances, it shall be fined more than 50,000 Yuan but less than 100,000 Yuan, and an announcement shall also be delivered.
Article 29 Where any entity or individual cheats the property of someone else in the name of franchise and commits a crime, it or he shall be subject to criminal liabilities; and in case no crime is committed, it or he shall be punished by the pubic security organ in accordance with the Law of the People's Republic of China on Public Security Administrative Punishments.
Where any entity or individual engages in pyramid selling in the name of franchise, it or he shall be punished in accordance with the Regulation on Prohibiting the Pyramid Selling.
Article 30 Where any functionary of the commerce department abuses his authorities, neglects his duties or resorts to cheats and a crime is committed, he shall be subject to criminal liabilities; and if no crime is committed, he shall be punished in accordance with law.
Chapter V Supplementary Rules
Article 31 The license of trademarks and patents in relation to the franchised operations shall be handled in accordance with the laws and administrative regulations on trademarks and patents.
Article 32 Related associations and organizations shall, under the guidance of the commerce department of the State Council, set down the provisions on franchises in accordance with the present Regulations, intensify guild self-discipline, and provide related services to the parties involved in the franchise.
Article 33 Any franchiser engaging in franchise activities before the implementation of the present Regulations shall be put on the archives of the commerce department in accordance with the present Regulations; and where it fails to do so within the time limit, it shall be punished in accordance with Article 25 of the present Regulations.
The franchiser prescribed in the preceding paragraph does not apply to the provisions in Paragraph 2 of Article 7 of the present Regulations.
Article 34 The present Regulations shall go into effect as of May 1, 2007.
The State Council 2007-02-06
中华人民共和国国务院令
第485号
《商业特许经营管理条例》已经2007年1月31日国务院第167次常务会议通过，现予公布，自2007年5月1日起施行。
总 理 温家宝
二○○七年二月六日
商业特许经营管理条例
第一章 总 则
第一条 为规范商业特许经营活动，促进商业特许经营健康、有序发展，维护市场秩序，制定本条例。
第二条 在中华人民共和国境内从事商业特许经营活动，应当遵守本条例。
第三条 本条例所称商业特许经营（以下简称特许经营），是指拥有注册商标、企业标志、专利、专有技术等经营资源的 企业（以下称特许人），以合同形式将其拥有的经营资源许可其他经营者（以下称被特许人）使用，被特许人按照合同约定在统一的经营模式下开展经营，并向特许 人支付特许经营费用的经营活动。
企业以外的其他单位和个人不得作为特许人从事特许经营活动。
第四条 从事特许经营活动，应当遵循自愿、公平、诚实信用的原则。
第五条 国务院商务主管部门依照本条例规定，负责对全国范围内的特许经营活动实施监督管理。省、自治区、直辖市人民政府商务主管部门和设区的市级人民政府商务主管部门依照本条例规定，负责对本行政区域内的特许经营活动实施监督管理。
第六条 任何单位或者个人对违反本条例规定的行为，有权向商务主管部门举报。商务主管部门接到举报后应当依法及时处理。
第二章 特许经营活动
第七条 特许人从事特许经营活动应当拥有成熟的经营模式，并具备为被特许人持续提供经营指导、技术支持和业务培训等服务的能力。
特许人从事特许经营活动应当拥有至少2个直营店，并且经营时间超过1年。
第八条 特许人应当自首次订立特许经营合同之日起15日内，依照本条例的规定向商务主管部门备案。在省、自治区、 直辖市范围内从事特许经营活动的，应当向所在地省、自治区、直辖市人民政府商务主管部门备案；跨省、自治区、直辖市范围从事特许经营活动的，应当向国务院 商务主管部门备案。
特许人向商务主管部门备案，应当提交下列文件、资料：
（一）营业执照复印件或者企业登记（注册）证书复印件；
（二）特许经营合同样本；
（三）特许经营操作手册；
（四）市场计划书；
（五）表明其符合本条例第七条规定的书面承诺及相关证明材料；
（六）国务院商务主管部门规定的其他文件、资料。
特许经营的产品或者服务，依法应当经批准方可经营的，特许人还应当提交有关批准文件。
第九条 商务主管部门应当自收到特许人提交的符合本条例第八条规定的文件、资料之日起10日内予以备案，并通知特许人。特许人提交的文件、资料不完备的，商务主管部门可以要求其在7日内补充提交文件、资料。
第十条 商务主管部门应当将备案的特许人名单在政府网站上公布，并及时更新。
第十一条 从事特许经营活动，特许人和被特许人应当采用书面形式订立特许经营合同。
特许经营合同应当包括下列主要内容：
（一）特许人、被特许人的基本情况；
（二）特许经营的内容、期限；
（三）特许经营费用的种类、金额及其支付方式；
（四）经营指导、技术支持以及业务培训等服务的具体内容和提供方式；
（五）产品或者服务的质量、标准要求和保证措施；
（六）产品或者服务的促销与广告宣传；
（七）特许经营中的消费者权益保护和赔偿责任的承担；
（八）特许经营合同的变更、解除和终止；
（九）违约责任；
（十）争议的解决方式；
（十一）特许人与被特许人约定的其他事项。
第十二条 特许人和被特许人应当在特许经营合同中约定，被特许人在特许经营合同订立后一定期限内，可以单方解除合同。
第十三条 特许经营合同约定的特许经营期限应当不少于3年。但是，被特许人同意的除外。
特许人和被特许人续签特许经营合同的，不适用前款规定。
第十四条 特许人应当向被特许人提供特许经营操作手册，并按照约定的内容和方式为被特许人持续提供经营指导、技术支持、业务培训等服务。
第十五条 特许经营的产品或者服务的质量、标准应当符合法律、行政法规和国家有关规定的要求。
第十六条 特许人要求被特许人在订立特许经营合同前支付费用的，应当以书面形式向被特许人说明该部分费用的用途以及退还的条件、方式。
第十七条 特许人向被特许人收取的推广、宣传费用，应当按照合同约定的用途使用。推广、宣传费用的使用情况应当及时向被特许人披露。
特许人在推广、宣传活动中，不得有欺骗、误导的行为，其发布的广告中不得含有宣传被特许人从事特许经营活动收益的内容。
第十八条 未经特许人同意，被特许人不得向他人转让特许经营权。
被特许人不得向他人泄露或者允许他人使用其所掌握的特许人的商业秘密。
第十九条 特许人应当在每年第一季度将其上一年度订立特许经营合同的情况向商务主管部门报告。
第三章 信息披露
第二十条 特许人应当依照国务院商务主管部门的规定，建立并实行完备的信息披露制度。
第二十一条 特许人应当在订立特许经营合同之日前至少30日，以书面形式向被特许人提供本条例第二十二条规定的信息，并提供特许经营合同文本。
第二十二条 特许人应当向被特许人提供以下信息：
（一）特许人的名称、住所、法定代表人、注册资本额、经营范围以及从事特许经营活动的基本情况；
（二）特许人的注册商标、企业标志、专利、专有技术和经营模式的基本情况；
（三）特许经营费用的种类、金额和支付方式（包括是否收取保证金以及保证金的返还条件和返还方式）；
（四）向被特许人提供产品、服务、设备的价格和条件；
（五）为被特许人持续提供经营指导、技术支持、业务培训等服务的具体内容、提供方式和实施计划；
（六）对被特许人的经营活动进行指导、监督的具体办法；
（七）特许经营网点投资预算；
（八）在中国境内现有的被特许人的数量、分布地域以及经营状况评估；
（九）最近2年的经会计师事务所审计的财务会计报告摘要和审计报告摘要；
（十）最近5年内与特许经营相关的诉讼和仲裁情况；
（十一）特许人及其法定代表人是否有重大违法经营记录；
（十二）国务院商务主管部门规定的其他信息。
第二十三条 特许人向被特许人提供的信息应当真实、准确、完整，不得隐瞒有关信息，或者提供虚假信息。
特许人向被特许人提供的信息发生重大变更的，应当及时通知被特许人。
特许人隐瞒有关信息或者提供虚假信息的，被特许人可以解除特许经营合同。
第四章 法律责任
第二十四条 特许人不具备本条例第七条第二款规定的条件，从事特许经营活动的，由商务主管部门责令改正，没收违法所得，处10万元以上50万元以下的罚款，并予以公告。
企业以外的其他单位和个人作为特许人从事特许经营活动的，由商务主管部门责令停止非法经营活动，没收违法所得，并处10万元以上50万元以下的罚款。
第二十五条 特许人未依照本条例第八条的规定向商务主管部门备案的，由商务主管部门责令限期备案，处1万元以上5万元以下的罚款；逾期仍不备案的，处5万元以上10万元以下的罚款，并予以公告。
第二十六条 特许人违反本条例第十六条、第十九条规定的，由商务主管部门责令改正，可以处1万元以下的罚款；情节严重的，处1万元以上5万元以下的罚款，并予以公告。
第二十七条 特许人违反本条例第十七条第二款规定的，由工商行政管理部门责令改正，处3万元以上10万元以下的罚款；情节严重的，处10万元以上30万元以下的罚款，并予以公告；构成犯罪的，依法追究刑事责任。
特许人利用广告实施欺骗、误导行为的，依照广告法的有关规定予以处罚。
第二十八条 特许人违反本条例第二十一条、第二十三条规定，被特许人向商务主管部门举报并经查实的，由商务主管部门责令改正，处1万元以上5万元以下的罚款；情节严重的，处5万元以上10万元以下的罚款，并予以公告。
第二十九条 以特许经营名义骗取他人财物，构成犯罪的，依法追究刑事责任；尚不构成犯罪的，由公安机关依照《中华人民共和国治安管理处罚法》的规定予以处罚。
以特许经营名义从事传销行为的，依照《禁止传销条例》的有关规定予以处罚。
第三十条 商务主管部门的工作人员滥用职权、玩忽职守、徇私舞弊，构成犯罪的，依法追究刑事责任；尚不构成犯罪的，依法给予处分。
第五章 附 则
第三十一条 特许经营活动中涉及商标许可、专利许可的，依照有关商标、专利的法律、行政法规的规定办理。
第三十二条 有关协会组织在国务院商务主管部门指导下，依照本条例的规定制定特许经营活动规范，加强行业自律，为特许经营活动当事人提供相关服务。
第三十三条 本条例施行前已经从事特许经营活动的特许人，应当自本条例施行之日起1年内，依照本条例的规定向商务主管部门备案；逾期不备案的，依照本条例第二十五条的规定处罚。
前款规定的特许人，不适用本条例第七条第二款的规定。
第三十四条 本条例自2007年5月1日起施行。