tag:blogger.com,1999:blog-11129181987276397712024-09-19T10:18:12.443-07:00Franchise China 中國特許經營博客Mark Methenitishttp://www.blogger.com/profile/03696857044549569635noreply@blogger.comBlogger11125tag:blogger.com,1999:blog-1112918198727639771.post-14175731366975232942007-06-11T13:47:00.000-07:002007-06-11T14:46:47.848-07:00Betting on the Middle KingdomMacau recently overtook Las Vegas as the number one gambling economy in the world according to gambling industry insiders. Since the laws changed in 2002 to allow foreign casinos to enter Macau, their market has boomed. It doesn't take a Freakonomics guru to figure out Macau's simple strategy: growth. Slot machines are driving much of that increase.Macau's secret formula has been to allow John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com1tag:blogger.com,1999:blog-1112918198727639771.post-41557536050071002792007-06-06T16:22:00.000-07:002007-06-06T16:26:09.055-07:00The Tao of Chinese Franchise Disclosure for Foreign FranchisorsArticle 4 of the Commercial Franchise Information Disclosure Management Measures (“Disclosure Guidelines”) states that a franchisor must provide a written disclosure document to a prospective franchisee thirty (30) days before executing a franchise contract, unlike the current U.S. FTC Rule (“Rule”), the Chinese disclosure law provides a definite time frame of 30 days disclosure prior to John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com1tag:blogger.com,1999:blog-1112918198727639771.post-63306076740901396582007-06-05T15:46:00.000-07:002007-06-05T15:53:24.611-07:00Gnomon and the circular paths of the Chinese “2+1” RuleIt is said by Chinese sources that as far back as 400 B.C. Chinese mathematicians had developed solution to many of mathematics most complicated problems by using physical rods called the “galley method.” One recent regulatory problem that needs to be solved by the Chinese government is the recently enacted “2 plus 1” disclosure rule under article 7 of the new Regulations of Commercial John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com0tag:blogger.com,1999:blog-1112918198727639771.post-68789988792324672522007-06-04T09:36:00.000-07:002007-06-04T10:13:55.188-07:00Sun Tzu on the Art of Franchise Battles in ChinaSun Tzu wrote in his classic treatise on war that, "A conquering army cannot enter into alliances until it is acquainted with the designs of its neighbors." Until recently, the last 20 years in fact, China did not recognize franchising as an official form of business, as had many of its trading neighbors. Chinese governmental involvement and a strictly controlled state distribution system was an John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com0tag:blogger.com,1999:blog-1112918198727639771.post-24585750012739414962007-06-01T10:37:00.000-07:002007-06-01T13:29:47.644-07:00Franchise Journey in China Begins with the First Registration Step!According to Article 6 of the Chinese Registration Guidelines, " a franchisor shall register the franchise with the governing registration agency within fifteen (15) days of the date of the execution of the first franchise contract with a franchisee in China."That seems simple enough, until you start tramping deeper into the registration forest. China has an extremely complex administrative John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com0tag:blogger.com,1999:blog-1112918198727639771.post-84413413849576897062007-05-31T11:36:00.000-07:002007-05-31T12:26:49.867-07:00FTC Rule versus Art.5: Are Chinese Earnings Claims Mandatory?If a foreign franchisor already has franchises inside China, according to Section 8 of Article 5 of the most recently enacted China Franchise Law, that franchisor must make "earnings claims" in his disclosure document. This could create an interpretive dilemma if the foreign franchisor does not have any outlets open in China yet. Can you use your US (FTC Rule/UFOC ) earnings claims based on US John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com0tag:blogger.com,1999:blog-1112918198727639771.post-75678138313323351452007-05-30T10:36:00.000-07:002007-05-30T10:41:12.881-07:00China Franchise Registration ProceduresBased on information provided by the Ministry of Commerce, a registering franchisor shall follow the following procedures sequentially to properly register.Step 1Obtain Username and Password to access the Ministry of Commerce official Website (获取登录号)1. If franchising is to occur within the boundaries of provinces, autonomous regions, or municipalities, the franchisor or its agent may hand deliverUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-1112918198727639771.post-43945697030517668882007-05-30T09:27:00.000-07:002007-05-30T10:49:00.030-07:00Avoiding The "Deemed Export" Dilemma in ChinaRecently, US franchise companies have run into problems hiring foreign Chinese nationals for their overseas supply and distribution facilities. It seems the "deemed export" licensing regulations have morphed into "deemed reexport" licenses according to industry representatives. Traditionally, the BIS regulation applied to the transfer of controlled technology to foreign nationals from controlled John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com0tag:blogger.com,1999:blog-1112918198727639771.post-47003191235933285172007-05-29T09:37:00.000-07:002007-05-29T10:20:44.927-07:00Does New Chinese Franchise Law Have Feng Shui?Earlier this month, May 1st to be exact, the long awaited Chinese Franchise Disclosure Guidelines ("Guidelines") went into effect. The Guidelines have brought some clarity to the Regulations as they attempt to add specific details to specific enforcement issues, but there are still traps for the unwary, it appears for foreign franchisors.Specifically, Article 4 of the Guidelines requires a John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com0tag:blogger.com,1999:blog-1112918198727639771.post-45597203198288166482007-05-24T07:11:00.000-07:002007-05-24T08:13:55.095-07:00Olympic Size Export Risks for Franchisors in 2008As the US athletes prepare for the 2008 Olympics in China, so should US franchisors. Challenges for both competitors could be substantial. US Department of Commerce and Defense Department officials have announced their intent to tighten controls vis a vis exports to China. Of 1,000 applications for dual use permits for China in the last four years only 700 have been approved under EAR regulationsJohn Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com0tag:blogger.com,1999:blog-1112918198727639771.post-16420059698080343062007-05-23T08:27:00.000-07:002007-05-23T09:14:24.691-07:00China Goes for GoldWith the Chinese government buying a $3 Billion (8%) stake in Blackstone Group, could McDonalds or Starbucks be their next target? It seems as obvious as a Yao Ming dunk. China has traditionally invested in conservative US T bonds, but no longer. Rumor has it that China wants more out of its growing foreign reserves and will even establish a foreign investment agency to enthusiastically chase John Vernonhttp://www.blogger.com/profile/01202838110579585947noreply@blogger.com0