| Since it sprang up worldwide after 1950s, Franchise Chain (FC) has become an innovative form of economic organization and mode of business operation, adaptive to different kinds of trades. FC is growing rapidly in an unprecedented way in China now: in the lines of business such as food and beverage or retail commerce, some old names in business and newly developed brands make good use of their brand names, techniques and management, take FC as their mode of operation, develop their own franchise system and achieve profits both economically and socially. So far, FC has become the major form of economic organization in China's business of food and beverage and a main factor that stimulates its high-speed growth, too.Scholars of China study the theories of FC mainly from two aspects: first, introducing and comparing foreign countries' experiences in FC; second, giving a summary of practical development of FC in China and offering corresponding suggestions. Their studies play an important role in spreading the knowledge of FC and are helpful to the development of FC in China. But there is another situation of theoretical studies of FC: there are not enough studies on the internal developing system of FC, or on the special control for specific lines of business (e.g., food and beverage) and the special conditions they need. The lag of theoretical study directly leads to controversies over FC of specific line of business and to some extent indirectly causes problems in FC's growing in China.Based on the above-mentioned situation of theoretic study, this paper aims at expositing the internal system and necessary conditions of FC's development. But the methodology the author adopts to discuss the subject matter is to get a thorough understanding of the internal system and necessary conditions of FC's development by studying the countermeasures agains6t the development of FC in China's business offood and beverage rather than by analyzing the subject matter from a perspective of general theories. The reason of doing so is that the business of food and beverage is a main trade in which FC gets involved and many controversies over this issue occurred in carrying out FC. More important, divorced from a specific lien of business, we cannot truly understand the internal system and necessary conditions of FC. For this purpose, trying to base on the theories of FC and the characteristics of China's business of food and beverage, this paper lays special stress on analyzing the significance of developing FC in China's business of food and beverage and the conditions needed for development so as to put forward the thought for and countermeasures against the development of FC in China's business of food and beverage and other trades as well.The first part of the paper emphasizes the significance of FC in China's business of food and beverage. As an innovative form of economic organization, FC is different from regular chain and free chain. It is not equated franchise, either. In fact, it's an advanced mode of franchise. To certain extent, FC can allocate resources through markets as well as enterprises, and has more advantages than traditional economic organizations. Theoretical analyses and practical data show that there are many significances developing FC in China's business of food and beverage. In the first place, FC helps enterprises expand operating scale rapidly and explore national and international markets effectively, so as to heighten the ability of enterprises in market competition and sustainable development. In the second, FC is beneficial for businesses to organize themselves in a higher degree and to optimize the order of market competition so that the health growing of business of food and beverage can be promoted. Third, FC is advantageous to boost nongovernmental investment and the employment rate of urban and rural residents so that contributes to the development of national economy.The second part of this paper gives a thorough analysis to theproblems occurred in developing FC in... |
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