China franchise regulations still a concern.The International Franchise Association and the franchise community remain concerned about China's franchise regulation issued by the Ministry of Commerce last February February: see month. . As written, the new rules seem to impose new barriers to franchising in that important market. For example, the regulations include provisions that seem to require that the franchisor must bear liability for compensating for economic losses suffered by the franchisee stemming from the disclosure requirements, which could create great uncertainty as to the franchisor's potential liability; and foreign franchisors must operate two company-owned units in China for a one-year adj. 1. completing its life cycle within a year. Adj. 1. one-year - completing its life cycle within a year; "a border of annual flowering plants" annual phytology, botany - the branch of biology that studies plants prior to offer franchises in China, creating significant additional costs to access the market. Fortunately, the rules are undergoing a review by the China's State Council, which is expected to release administrative regulations in the next several months that will supersede To obliterate, replace, make void, or useless. Supersede means to take the place of, as by reason of superior worth or right. A recently enacted statute that repeals an older law is said to supersede the prior legislation. the ministry issued franchise regulations. Working with a task force of IFA-company members and outside consultants, IFA Immunofluorescent assay (IFA) A blood test sometimes used to confirm ELISA results instead of using the Western blotting. In an IFA test, HIV antigen is mixed with a fluorescent compound and then with a sample of the patient's blood. is seizing this opportunity to engage Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. officials and is also in regular consultation with representatives of the office of the U.S. Trade Representative and U.S. Department of Commerce's International Trade Administration to ensure that the franchising sector's concerns are understood. Working with the association's general counsel, outside consultants and these government agencies, IFA expects to educate the Chinese about sector concerns and build a consensus with them in the creation of a regulatory climate regulatory climate The extent to which a regulated firm or industry is permitted to earn an adequate return on the stockholders' investment. This term is nearly always used in reference to utilities, which are required to obtain approval for rate changes. that will result in robust economic growth and development through the expansion of franchised businesses. The Chinese market is unique in its size and potential and IFA will continue to work to ensure that it remains open to U.S. franchise companies. |
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