Franchising

Franchising refers to the privilege granted to individuals or entities. In China, franchising usually performs in two forms. One is that the governmental agency authorizes a given enterprise the right of using public property, or operating licensed business in certain area; the other is that an enterprise empowers the other one to use its brand, trade name, patent right and other exclusive rights, to engage in business activities in accordance with the unified business model and the contract, and to pay the Franchisor. Recently, Chinese governments have made some explorations in applying franchising mechanism in urban rail transit development.