Overview

China is one of many countries to enforce franchise-specific legislation, namely, franchise disclosure and franchise registration. The Chinese Ministry of Commerce recently published proposed amendments to the rules dealing with disclosure and registration. Despite the period of public consultation having expired, it is still unclear when the new administrative rules will come into effect.

This briefing provides a summary of the most important changes. In doing so, it covers how franchisors will be affected by the '2+1' rule, cross-border franchising, the revised definition of 'affiliate', the amended list of disclosure items and new rules on confidentiality.

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