The Research On The Current Situation Of Franchise In Chongqing And The Solutions

More than one hundred years history has proved that Franchise which came from U.S.A is a good means to develop and strengthen enterprises. It is becoming increasingly important in world economies. At the beginning of 1990, franchise appeared and started to develop in China. At present, some advanced regions have seen its effect and it gradually developed from introduction stage to mature stage. Its annual increase rate is 40% averagely and this greatly exceeds the increase rate of total retail sales of consumer goods which is 10%. Therefore, it is the main way for the enterprises to expand their businesses and the new national economic growth point as well; it is also regarded as the Fourth industry with the greatest development prospects in China following "stocks, real asset and internet". As the metropolis located in the West, Chongqing started to develop franchise in 1997 and the result is delightful. There comes forth some large scaled franchising enterprises such as Chongbai, New Century, Peace Pharmacy, Little Swan, Caigenxiang, Taoranju and etc., and they push Chongqing's economy forward. However, it is the key period stage for the franchising enterprises in Chongqing. On the one side, the franchising enterprises have made some progress and the future is bright; on the other side, with the entering of WTO, there come a number of challenges such as concept innovation, modern technologies application, allocation center construction, management skills and talents training. Based on the research on the current situation of franchise in Chongqing, this paper compares the franchise in Chongqing with that in advanced countries and regions so that the deficiencies can be found and furthermore, the solutions to the existing problems are discussed. Such discussion will help the franchising enterprises in Chongqing to raise their Competitive Capacities and to develop rapidly.