特许经营业务在中国蒸蒸日上

With only 100 thousand yuan, retiree Liu Kai has opened up a franchise store to sell honey products in his neighborhood. The brand Baihua is quite famous among Beijing consumers. His store is only nine square meters in size, but the small store not only helps him become his own boss, it also brings him a sizeable profit.

"I can make 20 thousand yuan per month. My store isn't big, but I'm very satisfied with everything."

Liu Kai says starting a franchise business by paying a low membership fee is a good choice for budding entrepreneurs.

This year's China Franchise Expo will take place between May 11th and May 13th in Beijing. Franchise stores which require low sums of investment, such as Liu Kai's store, account for a greater proportion of this year's event compared to previous years.

Pei Liang, President of the China Franchise Business Association says opening a franchise store offering services to local neighborhoods is also one of the great choices on offer thanks to the tax deduction policy from the government.

"Opening a store in a neighborhood is quite economical thanks to lower rental fees. It's also much easier to find premises for such a store. There are a large number of vacant neighborhood stores hiding within communities. So, if a person wants to have his or her own business, then it'd be quite smart to start by opening a community franchise store."

Pei also says that franchise stores usually possess an established customer base which has been loyal to the brand for years.

Subway, the famous American fast food brand is expanding quickly in China. There are now 84 stores across Beijing. Subway General Agent of the Beijing Area, Alexander Moody-Stuart says the investment required to open a Subway store is not that high.

"Based on the requirements of the Beijing government, the smallest store under our brand should be 50 square meters. The basic cost on facilities is 350 thousand yuan. If you want to cut your expenses, finding the perfect location is also important."

In recent years, the Chinese government has issued several new policies designed to create a better environment for franchises and encourage people to start new businesses.

The total number of commercial franchise outlets in China exceeded 400,000 at the end of 2010. Business franchises in China have provided jobs for more than five million people and have attracted many foreign companies to open other franchises here. Many of them have now become very popular throughout the country.

For CRI, I'm Liu Min.