The year 2006 witnessed huge venture capitals in China franchise industry. In July of 2006, the typical catering franchise enterprise Inner Mongolia Little Sheep Catering Chain Co., Ltd attracted tens of millions US dollars, which gained widespread attention then. In addition, dianping.com and fg114.com also obtained a great amount of venture capitals. The investments into franchise industry have been increasing rapidly in recent years. On Nov 11th, 2006, texuonlin.com together with Center Plaza launched China franchise city to the world. The widely focused Regulations on the Management of Commercial Franchise were officially issued in February, 2007 and will take effect on May 1 2007. Gradually, China franchise market will go to right track as it accelerates its step moving forward.

According to the statistics of ResearchInChina, there had been about 16,000 franchise systems in operation around the world as of 2006, and the number of franchisees exceeded 1.6 million. As is shown from the report of WFC (the World Franchise Council), there are at least 100 well-known franchise enterprises in 29 countries and regions all over the world. As is estimated by WFC, the annual sales of the global franchise industry has been over USD 1 trillion, and created more than 20 million job opportunities. Chinese market has been increasingly attractive to international franchise business, and more and more Chinese enterprises are seeking opportunities to invest into franchise projects that can bring handsome economic returns. At present, China's franchise has covered the most of sectors of the global franchise system except for human resource services, taxation, insurance, accounting, and advertising, etc. The number of Unit franchisees will keeps growing up to 12%-14%. After about two decades' development, China franchise has been involved with over 60 industries, 2,600 franchisees and 168,000 franchise chains. On average, single franchise system has 73 franchise chains. The whole market is growing amazingly at a year-on-year rate of 40-50%.

The Number of China Franchise Systems, 2001-2006
 

Despite the rapid development of franchise in China, there are still some problems to be solved. The five major problems faced by franchise headquarters (by concern rate) at present include strategic development orientation, the standardization of administrative system, the regulations for franchisees, the unified standards for product services and, political and legal environments. China's domestic consumption in the future will be more quality-oriented, diversified and individualized. Hotspot is turning to such emerging consumption fields as education, healthcare & hairdressing, automobile and household services, which, together with changing consumption structure, brings huge development potential for franchise.

Moreover, the 2008 Olympic Games can also create huge opportunities for franchise industry. It is estimated the market scale of franchised Olympic Games products will reach about RMB 25-28 billion.

The report data is sourced from the National Bureau of Statistics, the Ministry of Commerce, China Chain Store & Franchise Association and the Development Research Center of State Council, etc. The report not only analyzes the status quo, development trend and investment prospect of China franchise industry, but also gives an in-depth study on the predominant enterprises in franchise industry. Therefore, it is of valuable reference for franchise enterprises as well as the investors.

2 China Franchise Status
2.1 China Franchise Development
2.1.1 Development Overview
2.1.2 Status Quo and Characteristics
2.1.3 Development Prospect
2.2 China Franchise Market
2.2.1 Market Positioning
2.2.2 International Franchise Investments into Chinese Market
2.2.3 Development Prospect of Franchise
2.2.4 Successful Factors of Enterprises to Carry Out Franchise
2.2.5 Attentions for Enterprises in the Expansion of Franchise Mode
2.3 Development of Overseas Franchise Brands in China
2.3.1 Overview
2.3.2 Options for Access and Partners
2.3.3 Operation Mode
2.3.4 Major Problems
2.3.5 Development Prospect of Overseas Franchise Brands in China
2.4 Analysis of China Franchise Environments
2.4.1 Environments and Potentials
2.4.2 Being Gradually Mature
2.5 Difficulties and Countermeasures of Chinese Franchise Enterprises
2.5.1 Obstacles
2.5.2 Measures

3 Educations and Franchise
3.1 Analysis of China Education Industry
3.1.1 Outline of China Compulsory Education Market
3.1.2 Status Quo and Development Prospect of China Higher Education
3.1.3 Outline of China Education & Training Market
3.2 Analysis on Education Franchise Market
3.3 IT Training Market
3.3.1 Status Quo
3.3.2 IT Training Franchise being the Development Trend

4 Garment Industry and Franchise
4.1 China Garment Industry
4.1.1 Current Development
4.1.2 Status Quo of Domestic Garment Market in 2006
4.2 Franchise of Garment Industry
4.2.1 Characteristics
4.2.2 Advantages
4.2.3 Disadvantages
4.2.4 Advantages and Disadvantages of Garment Direct Sales Stores and Franchise Stores
4.2.5 Pattern Conversion from the Wholesale of Garment Industry to Franchise
4.3 Status Quo of Franchise of Garment Industry
4.3.1 Market Scale of Franchise in Garment Industry
4.3.2 Trend of Garment Franchise Industry
4.3.3 Misguiding in Franchise of Chinese Garment Enterprises

5 Catering Industry and Franchise
5.1 Status Quo of China's Catering Industry
5.2 Franchise of Catering Industry
5.2.1 Advantages of Catering Franchised Chain
5.2.2 Analysis of Culture in Catering Franchise
5.2.3 Problems and Solutions of Catering Franchise
5.2.4 Fast Food Franchise Chain Pattern
5.3 Development of Catering Franchise
5.4 Discussion on the Standardization of China Catering Franchise
5.4.1 Standardization
5.4.2 Accelerating the Standardization Pace

6 Other Industries and Franchise
6.1 Highway Franchise
6.2 Cosmetic Industry and Franchise
6.2.1 Status Quo and Trend of Cosmetic Industry
6.2.2 Franchise of Cosmetic Industry
6.3 Laundry Franchise
6.4 IT Industry Franchise
6.5 Housing Intermediary and Franchise
6.6 Housing Decoration Industry and Franchise
6.6.1 Housing Decoration Franchise Patterns
6.6.2 Status Quo of Housing Decoration Franchise

7 Franchise Management and Marketing
7.1 Franchise and the Construction of Franchise System
7.2 Marketing Advantages of Franchise
7.3 Franchise and Brand

8 Famous Franchise Enterprises both at China and Abroad
8.1 McDonald¡¯s
8.2 Century21cn.com
8.3 K-Boxing (China) Co., Ltd.
8.4 Shanghai Elephant King Laundry Co., Ltd.
8.4.1 Development Course
8.4.2 Brand Construction
8.4.3 Franchise
8.5 Xishu Book House
8.5.1 Company Profile
8.5.2 Franchise Patterns
8.5.3 Supporting System
8.5.4 Risk Prevention and Exit Mechanism
8.6 Lenovo Group
8.6.1 "Lenovo 1+1" Franchise
8.6.2 Status Quo and the Future of Lenovo Franchise
8.6.3 Successful Factors
8.7 Beida Jade Bird APTECH
8.7.1 Company Profile
8.7.2 Advantages
8.7.3 Franchise Pattern
8.7.4 Standardization build-up
8.8 Nirvana Fitness & Spa
8.9 Beijing Cinep Automobile Technology Development Co., Ltd.
8.10 Dongyi Rising-Sun Co., Ltd.
8.10.1 Company Profile
8.10.2 Franchised Mode

9 Development Analysis of China Franchise Market
9.1 Development Trend of China Franchise
9.1.1 Franchised Patterns and Industrial Trends
9.1.2 Competition Trend of Franchise
9.1.3 Development Trend of Economic Patterns of Franchise
9.1.4 Major Problems Noteworthy in the Development of Franchise
9.2 Forward Looking of 2008 Olympic Games Franchise
9.2.1 Operations Review of Past Olympic Games and Prospect of Beijing Olympic Games
9.2.2 Developments of Beijing Olympic Games Franchise

10 Investment Analysis of Franchise
10.1 Investment Opportunities
10.1.1 Investment Opportunities
10.1.2 Latest Orientation for Franchise Investments
10.1.3 Status Quo and Investment Opportunities of Education Industry
10.2 Investment Risks
10.2.1 Investment Misguiding
10.2.2 Risks of Franchisor and Franchisee
10.2.3 Faultiness of Platform Construction
10.2.4 Franchise Risks and Avoidance