What is a franchise?
A franchise is a business arrangement in which a company (franchisor) allows another party (franchisee) to use its brand and business model in exchange for regular payments.
Why should I consider opening a franchise in Hong Kong?
Hong Kong offers a streamlined company formation process and support from an existing company.There are no specific franchise laws, but common laws protect consumers and businesses.Hong Kong has a straightforward tax system [...]
What laws protect consumers and businesses in Hong Kong?
Consumer Goods Safety Ordinance ensures product safety.Control of Exemption Clauses Ordinance prevents evasion of liabilities through contracts.Sales of Goods Ordinance sets quality standards for products.Supply of Services (Implied Terms) Ordinance regulates service [...]
What are the steps to start a franchise business in Hong Kong?
Pre-contractual disclosure: Provide accurate information to potential franchisees.Franchise Agreement: Establish legal obligations and payment terms.Formation of a Company: Incorporate a company in Hong Kong.
Do I need to follow any guidelines when opening a franchise in Hong Kong?
While not mandatory, the Hong Kong Franchise Association (HKFA) has a Code of Ethics that encourages transparent practices between franchisors and franchisees.
What should I consider before purchasing a franchise in Hong Kong?
Evaluate your financial capacity, staffing plans, income goals, and lifestyle preferences. Hong Kong consumers prefer upscale, innovative, and niche brand offerings, so consider market trends.