Legal basis: Article 3 of the Regulations on the Administration of Trademark Franchise (hereinafter referred to as franchising) refers to an enterprise (hereinafter referred to as franchisor) that owns registered trademarks, corporate logos, patents, proprietary technologies and other business resources, and licenses its business resources to other operators (hereinafter referred to as franchisees) in the form of contracts, and the franchisees operate in accordance with the unified business model as agreed in the contract and pay franchise fees to the franchisees. No unit or individual other than an enterprise may engage in franchise activities as a franchisor.