International Franchisors - China

International Franchisors - China

Franchise Industry Continues To Grow

In 1999 there were 974 franchises having 14,000+ units in China accounting for 4.5 % of total national sales.

In 2002 - 2003 the number of franchises had increased to 1,500, and store units to 70,000. Franchise store sales had increased to 7.8 % of total national sales!

Franchise sectors measured included:

9.5% Auto Service; 1.9 % Beauty; 1.9 % Building Material & Decoration; 5.8 % Cleaning Services; 11.6 % Computer & Internet; 9.6 % Consulting; 1.9 % Education; 5.8 % Fashion; 13.5 % Food and Beverage; 19.3 % Restaurants; 1.9 % Hotel Booking; 3.8 % Laundry Services; 5.8 % Leisure and Travel; 7.7 % Medical Care;

Experts are estimateing that by 2007 the number of franchises in China will increase to 100,000 units (annual growth rate of 35 %).

The Municipal Chain Store and Franchise Association of each province or major city approves and administers the growth of both domestic and international franchise enterprises.

With China's entry into the World Trade Organization, changes in policy are occurring at a fast pace, and it is important to check frequently on updates on changes in international busines policies in China.

Patents, trademarks and logos registered in the United States or anywhere in the World do not apply in China. To protect international intellectual proprty rights in China, patents must be registered anew with the P.R.C.

A withholding tax is imposed on royalties and other specified forms of income tax paid to foreign enterprises outside of the PRC.