Before joining a franchise, check the Ministry of Commerce filing, get the written disclosure, and put a "cooling-off period" in the contract
- High value
- Evidence A
- Saves money
- Free
- Takes some hours
- No willpower
In plain words
Under the rules, the brand owner must first run 2 company-owned stores for 1 year, and within 15 days after signing it must file with the commerce authority (商务部门). Before you sign, it must give you written materials covering 12 items, including the franchise fee, how the deposit is refunded, and whether existing stores make money. If you can't find a filing, they won't hand over the materials, or they want money before you can see the contract, walk away.
Mentioned in
Translated from the Chinese original. Original book, section 12, tip 5. This section describes legal rules, mostly mainland China’s. It is general information, not legal advice; for your own case, talk to a lawyer. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer