The Regulation of Franchise in China

USA and China. Relations between two countries. Conceptual image.

China is one of the world’s most competitive locations for business. The country has a huge potential for growth, and with that comes a number of opportunities. One of these opportunities is to start your own business in China.

There are many different options for new entrepreneurs, but there are also a lot of restrictions to how much you can grow your business and how long you can operate it. This article will discuss the regulation on franchising in China and what you should consider before starting your own business here.

The Regulation of Franchise in China

The regulation of franchise in China is not perfect, but it is still a viable option for the right business. This article will discuss what you should consider before starting your own business, and the advantages and disadvantages of franchise service compared to traditional methods.

What can be franchised in China?

China is one of the most diverse countries in the world. As a result, there are a lot of different types of businesses that can be franchised in China.

Franchising is one type of business that would best fit your company’s needs. This can be because it is a new business and has low start-up costs or because it already has an established market and stable cash flow.

Some businesses you cannot franchise include food, trade, construction, residential land development, animal husbandry, hotels, restaurants and bars.

What are the restrictions on franchising in China?

One of the most significant limitation for starting a new business in China is that you cannot operate a franchise here. This means that you cannot offer your business to other people, and it also means that if your business starts to grow, you have to close down and start again from scratch.

Another challenge entrepreneurs face when starting businesses in China is the lack of capital available for investment. Entrepreneurs have fewer financial resources at their disposal because of the relatively low level of foreign investment in China. For this reason, franchising in China is very expensive for new businesses to enter the market.

For these reasons, the regulation on franchising in China is generally not an option for many entrepreneurs looking to start or expand their business.


China’s policy on franchise is a complex one. There are restrictions and limitations on franchising in China. There are restrictions on the type of franchise that can be established, the type of business that can be franchised and the number of franchises that can be open.