The Art of Chen
Article Overview: When I arrived in Sydney, I exited the terminal and quickly felt the humid morning air. I strategically positioned myself in the cab-rank and waited in-line for my ride. After a few minutes, my cabbie pulled-up and then leaped out of his seat and ran around to my side of the car. A small Asian man with a couple of teeth missing and a crooked smile greeted me. He then pushed me out of the way assertively and snatched my suitcase from me and lobbed it into his boot.
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Free Download - Find fear before it finds you By Trent Leyshan
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The Art of Chen
Last week I flew from Melbourne to Sydney to conduct a two-day, 60 salesperson sales training session for a large kitchen and electrical ware supplier.
When I arrived in Sydney, I exited the terminal and quickly felt the humid morning air. I strategically positioned myself in the cab-rank and waited in-line for my ride. After a few minutes, my cabbie pulled-up and then leaped out of his seat and ran around to my side of the car. A small Asian man with a couple of teeth missing and a crooked smile greeted me. He then pushed me out of the way assertively and snatched my suitcase from me and lobbed it into his boot.
We both jumped in the cab and in broken English he introduced himself ceremoniously, "Hi, I'm Chen! Where are we off to today?" "To the Manly Novotel, thanks mate" I responded, slightly taken aback and amused by Chen's lively demeanour. We then proceeded to take the 40 minute journey and headed through the tunnel. The traffic was backed-up and sensing my anxiety about being late for a speaking gig, this seemed to infuriate Chen, to which he profusely apologised and assured me that I would not be late for my 11am start. Though slightly perplexed by Chen's noticeable concern, I got the impression he genuinely cared about getting me to my destination on time.
As we cruised through Neutral Bay, we shared a couple of jokes and Chen probed me about my business and why I was in Sydney. He asked if I had kids, and if my travels took me away from my family often? I said it did sometimes. His ponderous tone, told me he was genuinely concerned for me being away from home. I couldn't help but be intrigued by this tiny little man in his mid fifties with a giant and infectious grin.
Chen put his foot down to my amusement (and peril) when he needed to, but despite the trademark Sydney ‘nightmare' traffic, Chen got me to the venue on time. Chen hit the skids and the embattled cab came to an abrupt stop. With one foot on the brake and his head cocked towards me, Chen blurted in a proud tone, "We are here boss, on time! Are you happy?" "Chen, you're a legend, thank you and I would like to give you a tip." "No, no, boss not needed - what time do I pick you up?" He responded enthusiastically. Taken aback again, I said, "Oh, back to the airport... ok, well not tomorrow but the following day at 12.30pm? Chen whipped out his business card with his number and said in a fervent tone, "I be here at 12 just in case you early, and if you late, I wait, Ok?" You can guess my response.
I dont know about you, but getting a cab ride can either be an interesting experience or downright mundane, usually the latter. In this instance the 40 minute trek seemed to pass in less time. And despite Chen's cab needing a once over from a roadworthy officer, I didn't mind taking the journey in his beaten-up old bomb that was two days older than God. In fact, it added to the experience; which was far from ordinary. Chen created an experience for me that was unique and memorable and it cost him nothing but a
positive tone and
genuine interest in me.
Forget the bells and whistles and slick
marketing messages, Chen gave me something more meaningful. And guess what I gave him in return? My business and my loyalty!
Chen works in a hyper-competitive space and cabs drivers are a dime a dozen, but you don't have to be Nostradamus to know who I'm calling when I need a cab ride in Sydney? My man, Chen - because he's that good and he makes me feel that special! And the best thing for Chen is it costs him nothing. Embrace The Art of Chen, go on, I dare you!
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Information about doing franchise business in China
- CHINA’S FRANCHISE LEGAL SYSTEM
Introduction
Franchises has a history of more than one hundred years in foreign countries, now it has developed to be a mature business mode, and it is widely used in many countries, especially the developed ones. Recently, franchises has been developing fast in China, covering more than sixty industries and trades such as catering, retailing, clothes-washing, indoor decorations and gym. However, the market order of franchises is chaotic in some industries and areas. There are also some illegal and criminal activities under the guise of franchises. Under such circumstances, several important laws have been promulgated to regulate the commercial franchising activities.
Applicable Legislation
The main legislative provisions governing the commercial franchising in the PRC are:
the Measures on Administration of Commercial Franchises; and
the Measures on Administration of Archival Filing of Commercial Franchises; and
the Measures on Administration of Information Disclosure of Commercial Franchises
Qualification for Franchisors
According to the laws, the franchisors as those enterprises who own such business sources as registered trademarks, enterprise logos, patents and proprietary technology, and license these business sources to franchisees.
Firstly, the franchisors shall be enterprises, excluding other economic organizations and individuals.
Secondly, the trademarks which can be licensed to franchisees shall be registered trademarks. According to the Trademark Law, the trademarks, whether registered or not, are protected under the laws, though there is difference in the vigor and extents of protection. It seems that the Ministry of Commerce has restrictions in recognizing trademarks, since it only provides “own trademarks to be licensed to others” at large, which causes chaos in practice. In the cases relevant to franchising disputes which we provided legal service to, all of them involve the situation that the franchisors granted licenses of non-registered trademarks or the trademarks which were in application to others, and when there was infringement on trademarks, the franchisors were unable to prevent infringement on trademarks. Then the interests of the franchisees could not be realized. What’s more, franchising activities with non-registered trademarks also, to some extent, encourage commercial frauds.
Thirdly, the logos, patents and proprietary technology of enterprises are included in the business sources to be licensed to others for the first time, which enlarges the application scope of franchises and will improve the development of franchises.
Requirements to be Met in Carrying on Franchising Activities
In addition to the condition that only the enterprises will be allowed to carry on franchising activities referred to above, the franchisors shall also have mature business modes, and are able to provide business guidance, technology support and training. The enterprises which copy the manuals, websites and enlisting documents of others, and have no service abilities for providing business guidance, technology support and training shall be excluded. What needs pointing out is that even these enterprises that are allowed to carry on business may face with the suits claiming them for unfair competition and infringements on intellectual properties. In addition, the Measures clearly request that the franchisors shall operate at least two directly operated shops, and the period of operation shall be more than 1 year, which aims to prevent frauds by the way of franchising.
Information Disclosure Requirements and Regulation on Franchisors
Information disclosure system is the core system of franchising. The laws provides that the franchisors shall establish and implement a perfect information disclosure system, and provide the relevant information and franchising contracts in written form, at least thirty days before execution of franchising contracts. It also sets out the specific provisions on the information which shall be provided by franchisors, including the basic conditions and commercial reputation records of the franchisors and their legal representatives, business sources owned by franchisors, abilities of franchisors to provide service to franchisees and management and supervision on business of franchisees, franchisee fees and the payments, and budgets for investment in franchising shops. To the franchisors that violate these provisions, the authorities in charge of commerce will order them to rectify, charge penalties and make public statements.
Archival Filing and Public Announcement Systems
To protect the franchisees’ lawful rights and interests, considering the asymmetric information between franchisors and franchisees, in addition to intensifying information disclosure requirements and regulating the activities of franchisors, the Measures also bring in the archival filing and public announcement systems. The Measures provides that the franchisors shall make a filing with the commerce administrative department within 15 days after the execution of franchising contracts for the first time. Anyone who intends to engage in any commercial franchise activities within a province, autonomous region, or municipality directly under the Central Government shall go through the archival filing formalities in the commerce administrative department of the people’s government of the province, autonomous region, or municipality directly under the Central Government where the franchisors are located. Anyone who intends to engage in any commercial franchise activities beyond a province, autonomous region, or municipality directly under the Central Government shall go through archival filing formalities in the commerce administrative department of the State Council. Any franchisor having been engaging in franchise activities before May 1, 2007 shall apply for archival filing at the commercial administrative department.
The Ministry of Commerce has established the national network for archival filing work relating to commercial franchise. Any franchisor shall go through the archival formalities through the government website. The general public may obtain the following information through the government website of the Ministry of Commerce: (1)The registered trademark(s), enterprise mark(s), patent(s), know-how and other business resources of the franchisor; (2)The franchisor’s archival filing date; (3)The location of the legal business place, contact information and name of the legal representative of the franchisor; and (4)The location of the business place of the franchisee(s) within China.
The authorities in charge of filing will cancel the archival filing if there is any following activities of franchisors, and make public announcement on the government website: (1) the business licenses of the franchisors have been withdrawn by the registration administrative authorities for illegal business; (2) the authorities in charge of filing receive judicial suggestion letter on cancellation of archival filing from the judiciary for illegal business by franchisors; (3) the franchisors conceal the relevant information or provide false information, which has been proved; (4) the franchisors carry on cancellation by themselves. In addition, the illegal activities of the franchisors will be announced to the public.
By Erex Chen, a Chinese lawyer based in Shanghai.
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