Franchise booming in China

The Seventh China Franchise Convention and Exhibition has kicked off in Beijing. The event attracted over ten thousand visitors on the first day. However Experts warn that investors should be cautious when choosing to invest in franchise stores.

More than 180 domestic and overseas franchise brands are attending the exhibition. They come from various industries including retailing, catering and real estate. The big brand names like Quanjude, Donglaishun, and McDonald's are among them. If you want a piece of the action with these companies you'll have to put up a high franchising fee. However, when interviewed, many investors show a favor for the small and medium-sized investment programs. With more than two thousand franchise stores and over 120 thousand outlets, China has seen its franchise market grow into the world's largest over the past decade. However, Guo Geping, Chairman of the Chain Store and Franchise Association, warns against speculating too casually in the franchise business.

Guo Geping, CCSFA Chairman said, "Investors should be cautious about choosing franchise brands. They should not expect to become overnight millionaires. Easy gains are always risky."