Study On Franchising In International Trade

With the rapid development of Chinese economy and China's entry intoWTO, more and more MNCs rush into china, which take different entrymodes, especially the franchise format. Franchise is not new to Chineseenterprises but it is still underdeveloped in China, including the franchiselegislation and the commercial environment. The paper falls into four parts:Chapter one gives us a general review about franchise, such as the history offranchise, franchise type and current development status in the States and inChina;Chapter two explores franchising from the franchisee and franchisorpoints of view. Buying a franchise is a serious investment of time and moneyfor a business you will likely depend on for your livelihood. You shouldthoroughly educate yourself on the issues faced by franchisees in general andthe specifically in the system you hope to join. The second half offers somesuggestions on how to recruit franchisees, there are difficult decisions to bemade in the recruitment of franchisees, which are tied up with accurateassessments of who will succeed and who will fail. Chapter three presentsconstructive suggestions and warning signs those prospective franchiseesshould keep in mind to avoid franchise fraud. Last chapter is the survey aboutthe franchise industry in China. The intent of this paper is to provide thecompanies, especially the Chinese entrepreneurs who desire to touch thefranchising field, with some guidance. Everyone wants to be the boss of hisown, like other business, franchise is not risk-free. Hopefully, it could helprealize American Dreams.