Franchise laws in Guangzhou are different from that of US or Europe. Your Franchise documents need to be review by our Guangzhou franchise attorney. Our China franchise lawyer can help you with the complex documentation that comes with buy or selling a Franchise in China. Our lawyers are from prominent China franchise law firm, counseling franchises in virtually all stages of development.
Types of Franchises
Basically, there are three types of franchised businesses:
Distributorships. In this kind of franchise, a manufacturer (the franchisor) gives you a license to sell the franchisor's product either exclusively or along with other products. The franchisee may be given an exclusive right to sell the product within a specified territory. These are known as product franchises.
Business Format Franchises. Here, the franchisee operates his business under the franchisor's trade name. The franchisee is identified as a member of a select group of dealers and is required to follow standardized methods of operation. The aim of this type of franchise is to build nationwide or worldwide consumer recognition and acceptance of trademarks and the products and services associated with them. Good examples of this type of franchise are your favorite fast food restaurants, which you find no matter what state, or even country, you visit.
Manufacturing or Processing Plant. In this kind of franchise, the franchisor gives you the essential ingredients or formula for making a product to be manufactured or processed and then sold, either at wholesale or retail. Usually, the franchisor will have strict guidelines on how the goods are made and sold by you.
Our franchise practice spans from the initial evaluation of start-ups to entire system representation of well-established franchises.
Initial Franchise Evaluation
We help our clients determine if franchising is the best option to meet their business needs. We explore the benefits and drawbacks of franchising along with other forms of growth and discuss the realistic approaches to the development of distribution. If the client decides not to create a franchise, we have experience counseling clients on alternative modes of business expansion, whether it be licensing, joint venture, or use of an operating partner model.
We work with companies initially starting a franchise system. For these clients, we counsel them on the structure of their franchise program, including the role of area developers, area representatives, and sub/master licensing. We help clients create the applicable franchise documents, including drafting and registering Franchise Disclosure Documents (formerly known as Uniform Franchise Offering Circulars) and other critical operational documents like franchise and license agreements.
We work with existing franchisors and sub-franchisors to maintain or expand their franchise systems. We update the China franchise agreements according to the lasted China franchise law annually or quarterly depending on need. We also work to ensure compliance with China franchise law regulations and assist with related state registration in the states that currently have franchise investment laws. We have an in-depth knowledge of the benefits and restrictions of franchise relationships and advise our clients on the complex aspects of these relationships.
If you've already signed a franchise agreement, and you are experiencing difficulty in dealing with your franchisor on a day-to-day basis, you need to take immediate action. Without the help of a franchise attorney, you're fully exposed to the worst effects of franchise law. You always have the option to "walk away," but this last-resort effort can hurt you if you do it at the wrong time or in the wrong manner. Our Guangzhou franchise lawyer also helps existing franchisors with the review of legal documents, agreement negotiation, litigation management and general business transaction consulting.