Business Franchise Record Management

Original Language Title: 商业特许经营备案管理办法

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Read the untranslated law here: http://www.chinalaw.gov.cn/article/fgkd/xfg/gwybmgz/201203/20120300362006.shtml

Business franchise record management

    (December 12, 2011 Ministry of Commerce [2011] the 5th release come into force February 1, 2012) first to strengthen the administration of commercial franchise, regulating franchising market order, in accordance with the regulations on the administration of commercial franchises (hereinafter referred to as the regulations) relevant provisions of these measures.

    Article in the People's Republic of China territory (hereinafter referred to as China) engaging in commercial franchising activities governed by this approach. The third Ministry of Commerce and the provincial, autonomous region, municipality departments in charge of Commerce is a franchise record.

In provinces, autonomous regions and municipalities within the commercial franchise, the franchisor is located business departments of provinces, autonomous regions and municipalities; across provinces, autonomous regions and municipalities engaged in franchise activities of the scope, to the Ministry of Commerce for the record. Franchise business nationally networked record.

    Comply with the provisions of the Ordinance of the franchisor, pursuant to this regulation through the establishment of information management system of commercial franchises for the record. MOFCOM may, in accordance with the relevant provisions of article fourth, across provinces, autonomous regions and municipalities directly under the commercial franchise record for commissioned range of provinces, autonomous regions and municipalities directly under the people's Government departments in charge of Commerce.

Entrusted with the provinces, autonomous regions and municipalities the commercial Administrative Department should be allowed to finish the record, shall not delegate to any other organization or individual record.

    Entrusted with the provinces, autonomous regions and municipalities not filing duties according to the law of the commercial Administrative Department, the Commerce Department can directly accept the franchisor's application.

    Fifth article of any units or individuals for acts in violation of these rules, is entitled to report to the Commerce authorities, competent commercial departments should be dealt with according to law.

    Article sixth record special permission shall be submitted to the registration authority the following documents:

(A) basic conditions of franchise.

(B) distribution of all franchisee stores in China.

(C) the franchisor's market plan.

(D) the business license or other qualifications.

(E) associated with the franchise's trademark rights, patent rights and other resources registration certificate.

(Vi) compliance with the seventh of the documents provided for in the second paragraph of article.

Before May 1, 2007, has been engaged in franchise activities of the franchisor is submitted when applying for a franchise record does not apply to the provisions of the preceding paragraph.

(G) China's first franchising contract made by the franchisee.

(H) the franchise agreement sample.

(I) the list of franchise operations manual (must mention the number of pages for each section, and the total number of pages of the manual, on Charter systems on the internal network to provide such manual shall provide an estimate of printed pages).

(10) national laws and regulations may, upon approval of franchise products and services, approval documents shall be submitted to the relevant authorities.

Enterprises with foreign investment shall be submitted to the certificate of approval for foreign-invested enterprises, foreign-invested Enterprise approval certificate should be included in the scope of "commercial activities by way of franchising" project.

(11) the franchisor commitments signed by the legal representative.

(12) the filing authority deems the submission of additional information. File above in the People's Republic of China outside the form required by the notary public of the country (with Chinese translation), and endorsed by the People's Republic of China Consulate in host country makes certification or fulfill the People's Republic of China entered into with the State in which the proof provided for in the relevant treaty procedures.

    In Hong Kong, Macao and Taiwan regions, and shall perform other identification procedures.

    Article seventh a Franchiser shall, and chartered in China in the 15th date of the franchising contract concluded for the first time those who apply to the filing authority record.

Article eighth franchiser the following registration information changes shall apply to the filing authority within the 30th of change:

(A) the franchisor's registration information.

(B) the management resource information.

    (C) distribution of all franchisee stores in China.

    Before Nineth a Franchiser shall, on March 31 of each year will be its last year made, withdrawal, termination, renewal of the franchise agreement to the registration authorities.

    Article tenth franchisor information should fill in all matters, and to ensure that the information is true, accurate and complete.

11th of the registration authority shall receive the franchisor to present measures article sixth of the documents and materials within 10th of record and information management system of commercial franchises announce. Franchisor submitted documents and materials are not complete, filing authority may request additional documents and materials in the 7th.

    Filing authority in a franchisor material added range within 10th of the record.

12th franchisee has any of the following acts of completed records, filing authority may revoke the filing and information management system of commercial franchises announce:

(A) the franchisor cancellation of business registration, or due to illegal operators, by the competent registration authority shall revoke business licenses.

(B) the record received judicial organs because franchisers made illegal withdrawal of filing judicial proposals.

(C) the franchisor to hide relevant information or provide false information, causing a significant impact.

(D) who apply for revocation of the concession for the record and agreed by the filing authority.

    (E) other circumstances that need to be withdrawn for the record.

    13th Commerce authorities of provinces, autonomous regions and municipalities should be filing and revocation of the record 10th feedback in the context of the Ministry of Commerce.

14th filing authority should be completely and accurately record and save the franchisor's record information materials, by law, the franchisor to keep business secrets.

    Location of the franchisor (provincial, autonomous region, municipality or municipal district) people's Government departments in charge of Commerce to franchisor by filing proof of filing.

15th queries accessible through franchising information management system the following information:

(A) the franchisor's name and franchise business use of registered trademarks, corporate logos, patents, know-how and other operating resources.

(B) the franchisor's record time.

(C) the franchisor's official place of business address and contact information, name of the legal representative.

    (D) distribution of all franchisee stores in China.

    16th the franchisor is not in accordance with the Ordinance and the regulations for the record, by District municipal Commerce authorities ordered more than the record, and fined a maximum of between 50,000 yuan and 10,000 yuan; if not filed, fines of between 50,000 yuan and 100,000 yuan, and make an announcement.

    Article 17th licence who contravenes the provisions of article Nineth, districts of the city-level business Department ordered corrective action and may be fined not more than 10,000 yuan in serious cases, the fines of between 50,000 yuan and 10,000 yuan, and make an announcement. Article 18th franchising activities in China by foreign licensees, in accordance with these rules.

    Hong Kong and Macau S.A.R. and Taiwan people referring to this approach to the implementation of the concession.

    19th of the related organization shall, in accordance with the rules of the Association to strengthen self-discipline to guide licensees filing according to law.

    Article 20th explain these measures by the Ministry of Commerce. 21st article this way come into force February 1, 2012. May 1, 2007 implementation of the commercial franchise record management policy (Ministry of Commerce 2007 of 15th) repealed simultaneously.