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Several opinions of the State Economic and Trade Commission on regulating the franchise operation of gas stations, issued on 2002-08-26.

Several Opinions of the State Economic and Trade Commission on Regulating the Franchise Operation of Gas Stations

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Several opinions of the State Economic and Trade Commission on regulating the franchise operation of gas stations, issued on 2002-08-26.
Chinese name
Several Opinions of the State Economic and Trade Commission on Regulating the Franchise Operation of Gas Stations
Issued
State Economic and Trade Commission
Issue number
National Economic and Trade [2002] No. 631
Release date
2002-08-26
content
[Effective Date] 2002-08-26
[Expiry date]
[Category] National Laws and Regulations [Document Source]
Some Opinions on Regulating the Franchise Operation of Gas Stations (Guo Economic and Trade [2002] No. 631)

Provincial and autonomous economic and trade commissions, Beijing and Shanghai economic commissions, Tianjin and Chongqing commercial commissions, Dalian economic and trade commissions, Qingdao Municipal Finance and Trade Office, Xiamen Economic and Development Commission, Shenzhen Economic and Trade Bureau, Xinjiang Production and Construction Corps Economic and Trade Commission, China National Petroleum Corporation Group companies, China Petrochemical Corporation:
Regulate the franchise behavior of gas stations, and guide social gas stations into the chain operation system of China National Petroleum Corporation (hereinafter referred to as: PetroChina) and China Petroleum & Chemical Corporation (hereinafter referred to as: Sinopec). Important measures for special rectification of gas stations. In order to implement the spirit of the Notice of the General Office of the State Council on Carrying Out Special Remediation Work for Gas Stations (Guobanfa [2002] No. 18), and to standardize the franchise operation of gas stations, the following opinions are proposed:
I. Gas station franchise means that the franchisor, through the signing of a contract, grants to other gas stations the names, registered trademarks, proprietary technologies, business models, business technologies, service standards, etc. related to the operation of the gas station that are authorized to be used by others. , Authorized gas stations are engaged in retail sales of oil products and related services under the unified franchise system as agreed in the contract, and pay corresponding fees to authorized enterprises. Among them, the enterprise that grants franchise rights to others is the franchisor, and the gas station that is authorized to use the franchise is called the franchisee.
Second, the development of gas station franchise should follow the principles of voluntary, fair, honest and credible.
3. The franchiser of the gas station is PetroChina, Sinopec and its authorized subsidiaries (see the annex for the list of enterprises). Subsidiaries carry out gas station franchise activities in various places in accordance with the scope authorized by the parent company.
4. The franchisee must meet the following requirements:
(1) The gas station conforms to the local gas station development plan and meets national environmental protection, fire protection, and building safety standards;
(2) Possessing certain operational management capabilities, good credit standing, and no record of operating in violation of laws and regulations in the past two years;
(3) Other conditions stipulated by the State Economic and Trade Commission and provincial economic and trade departments.
5. The franchisor has the following rights:
(1) Supervise the franchisee's business activities in accordance with the contract to ensure the uniformity of the franchise system of gas stations and the consistency of product and service quality;
(2) For franchisees who violate the provisions of the franchise contract, infringe the franchise's legal rights and interests, and damage the franchise system, terminate their franchise qualifications in accordance with the contract;
(3) Charging the franchisees for various fees stipulated in the contract and a certain amount of security deposits;
(4) Other rights stipulated in the contract.
6. The franchisor must perform the following obligations:
(1) Providing operating resources and operating manuals representing the franchise system;
(2) ensuring timely delivery of refined oil products at reasonable prices and meeting national quality standards to franchisees under different market conditions;
(3) Providing business or technical guidance, training and other services to the franchisee;
(4) Matters such as the use and return of the performance bond as agreed in the contract.
7. The franchisee has the following basic rights:
(1) the relevant rights granted by the franchisor as stipulated in the contract;
(2) Obtaining training and guidance provided by the franchisor;
(3) Obtaining promotional support from franchisors;
(4) Require the franchisor to compensate for the damage caused by providing false information.
8. The franchisee must fulfill the following basic obligations:
(1) Abide by the franchisor's operating principles and policies, consciously maintain the reputation of the franchise system and the unified image of gas stations, and must not:
1. Sales of third-party oil products;
2. Carry out promotional activities by yourself;
3. Engage in other business activities than stipulated in the contract;
4. Unauthorized transfer of franchise rights.
(2) Paying royalties and other expenses on time as agreed in the contract;
(3) accept the guidance and supervision of the franchisor, and ensure that the real operating and financial information is submitted to the franchisor on time;
(4) Keep the business secrets of the franchisor.
9. To engage in gas station franchising, a written franchise contract should be signed in Chinese. The franchisor shall send the contract sample to the franchisee at least 10 days before the formal signing of the contract. The franchise contract should include the following:
(1) authorizing the use of the content, scope, duration, geographical area and exclusivity of the franchise;
(2) the rights and obligations of the franchising parties;
(3) Charge items, standards, and payment methods;
(4) confidentiality clauses;
(5) insurance clauses;
(6) Safety management provisions;
(7) liability for breach of contract;
(8) Alteration, extension and termination of the contract;
(9) Publicity and advertising;
(10) Other matters agreed by both parties.
X. The franchisor shall disclose the true, accurate and complete basic information about the franchise to the applicant in written form 10 days before the formal signing of the franchise contract. The basic information disclosed by the franchiser should include:
(1) The franchiser's business name, registered capital (gold), domicile, business scope (copy of business registration registration copy), financial report audited by an accounting firm, etc .;
(2) the number of franchised gas stations, their distribution locations, and their operating conditions, the number of franchisees who have terminated their franchise contracts, and the reasons for their cancellation;
(3) Registration of trademarks, trade names, and other concessions that have the right to authorize others to use, other people's use and litigation; information on business technology and service standards;
(4) the amount of the franchise fee and various other fees, the method of collection, and the conditions for returning the security deposit;
(5) Disputes and pending lawsuits related to franchising;
(6) Conditions and restrictions on available oil products and services;
(7) Able to provide the franchisee with training and proof of guidance ability.
11. The franchisee shall truthfully provide information about its own business capabilities in accordance with the requirements of the franchisor, mainly including the legal qualification certificate of the gas station (planning, national land, fire protection, environmental protection, taxation, measurement, etc.), and the "Approval Certificate for Retail Sales of Refined Oil" , Credit certificate, property right certificate, etc.
12. Any applicant who has not signed a franchise contract with the franchisor but who knows the franchisor's trade secrets through the information disclosure of the franchiser shall keep the franchisor confidential, shall not disclose or transfer the franchisor and has signed a franchise with the franchisor Trade secrets of the franchisee of the contract.
13. The franchisor may charge the franchisee the following franchise fees:
(I) Franchise fee: A one-time fee charged by the franchisor when the franchise is granted to the franchisee.
(2) Royalties: The fees paid by the franchisee to the franchisor in a certain standard or proportion during the use of the franchise.
(3) Other agreed fees: Other fees charged by the franchisee to the franchisee for the provision of related supplies or services to the franchisee in accordance with the contract.
According to the actual situation, the franchisor and the franchisee may specifically agree on the type, amount, payment method or exemption of franchise fees to be collected in the franchise contract.
14. Before the franchiser or the authorized company of the franchiser conducts franchising activities, it shall hold the relevant approval documents to the provincial economic and trade department where the franchise is located for the record, before it can carry out the franchising activities and accept the supervision and guidance of the local economic and trade department. At the same time, the following materials need to be submitted:
(1) the content specified in Article 10 of this Opinion;
(2) Samples of franchise contracts;
(3) Franchise operation manual;
(4) Recently audited financial statements;
(5) Approval documents authorized to carry out franchise operations;
(6) Other materials required by the provincial economic and trade department.
15. Provincial economic and trade departments should strengthen the supervision and management of gas station franchising. For gas stations that have not obtained the "Retail Oil Approval Certificate" before September 30, 2001, if they comply with the local gas station industry development plan and join the franchise system of PetroChina and Sinopec, they can be issued with "Refined Oil Product Retail Operation Approval" Certificate ", and it is stated in the certificate that it is a franchised enterprise of PetroChina or Sinopec. If the gas station withdraws from the franchise system of PetroChina or Sinopec, the provincial economic and trade department shall withdraw its Approval Certificate for Retail Operations of Refined Oils.
16. A franchisor who commits one of the following acts shall be investigated and punished by the provincial economic and trade department according to law. In serious cases, his qualification to continue the franchise operation of the gas station shall be cancelled.
(1) Carry out franchising to gas stations that do not meet the requirements of the franchisee;
(2) Other acts that violate the national product oil distribution policy.
17. If the franchisee commits one of the following acts, the provincial economic and trade department may authorize the local economic and trade department to investigate and deal with it according to law. In serious cases, the provincial economic and trade department shall withdraw its Approval Certificate for the Retail Business of Refined Oil.
(1) to carry out franchising without the consent of the franchisor using the franchisor's trademark, name, and logo (including any trademarks, names, and logos similar to or confusing with the franchisor);
(2) After the franchise contract is terminated, the franchisee continues to use the franchisor's trademark, name, and logo (including any trademarks, names, and logos that are similar or easily confused);
(3) The franchisee sells third-party oil products, raises oil prices without permission, promotes at will, or engages in other service activities outside the franchise system;
(4) the franchisee transfers the franchise right without the consent of the franchisor;
(5) Failure to meet safety standards or conditions for safe operation;
(6) Other acts that violate the national product oil distribution policy.
Provincial economic and trade departments shall report to the Trade and Market Bureau of the State Economic and Trade Commission the relevant situation of gas station franchising activities in the region. According to this opinion, PetroChina and Sinopec shall formulate corresponding gas station franchise management rules and regulations, strictly internal management, and further regulate franchise operations. [1]

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