How Businesses in China Can Set Product Standards and Sample Acceptance Procedures Before Franchising

Product quality may remain consistent when a founder personally oversees an outlet. But with different franchisees, staff and equipment, simply asking people to ‘copy the sample’ can lead to inconsistent results. Before launching a franchise operation, an established business should put product standards and sample acceptance procedures in place, giving everyone in the franchise network a shared understanding of what counts as acceptable, how to assess it and who is responsible for correcting problems.

1. Separate statutory requirements from brand standards

Article 15 of China’s Regulations on the Administration of Commercial Franchising requires the quality and standards of franchised products or services to comply with laws, administrative regulations and relevant national requirements. Article 11 requires written franchise agreements to include requirements for product or service quality and standards, along with measures to ensure compliance. Quality management therefore cannot remain a matter of head-office know-how: it must also form part of arrangements that both parties can put into practice.

When developing standards, distinguish between two levels of requirements. The first comprises statutory requirements applicable to the particular product, such as food safety, product safety, labelling and relevant mandatory standards. The second comprises the business’s own requirements for brand consistency, such as portion size, appearance, taste and packaging presentation. Check which rules apply to each product category rather than assuming that one generic checklist will cover every item.

Brand standards cannot replace statutory requirements. Nor does head-office approval of a sample justify selling a non-compliant product. In the standards sheet, identify the source of each requirement, the verification method and the person responsible. This helps avoid presenting internal preferences as legal obligations or treating legal minimums as negotiable.

2. Turn ‘good quality’ into criteria that can be assessed

Start by creating specification sheets for the most representative core products; there is no need to cover the entire range at once. Each sheet should state the product specifications covered, production conditions, inspection point, acceptance limits and how to handle non-conforming products. Another employee should be able to use it without consulting the founder.

Criteria can be divided into three categories:

• Measurable criteria: Examples include net content, dimensions, temperature and assembly clearances. Specify the measuring tools and methods.
• Observable criteria: Examples include surface integrity, colour and packaging condition. Provide comparison photographs showing acceptable and unacceptable results.
• Sensory criteria: Examples include taste, aroma and feel. Explain the assessment conditions rather than relying on vague descriptions such as ‘balanced’ or ‘premium’.

Every numerical value should have a basis. Follow legally applicable standards directly, and establish any tolerances set by the business through testing. Do not invent figures simply to make the documentation look professional.

Reference samples should also have a version number, approval date and validity period. Products that deteriorate or age cannot serve indefinitely as physical references. Preserve the standard through a combination of photographs, measurement records and documented production conditions. Photographs show appearance only; they cannot establish safety or internal quality.

3. Test whether the standards can be applied consistently in company-owned outlets

The purpose of a sample acceptance procedure is not to prove that head office can make one perfect product. It is to establish whether ordinary staff can consistently assess and reproduce it. In existing company-owned outlets, ask employees on different shifts and with different levels of experience to make products independently using the same specification sheet, and record the results.

Testing should cover real operating conditions, such as production during busy periods, batch production and the product’s condition after a reasonable period of storage. The inspection point is particularly important: a product that passes immediately after production may no longer meet the requirements when handed to the customer. For products delivered to customers, also check how transport conditions affect the finished product.

Differences between assessors are another easily overlooked issue. Have two people independently assess the same set of samples and compare their conclusions. If one frequently passes a sample that the other fails, first examine the descriptions, tools and sampling methods rather than immediately blaming poor execution by staff.

Where deviations recur, investigate whether the cause lies in ingredients or materials, equipment, production steps or the standard itself. Only after revision and revalidation should the standard be used for acceptance checks at franchised outlets. This is a management recommendation, not a fixed testing procedure prescribed by law.

4. Agree responsibilities for acceptance checks and reassessment before signing

Article 14 of China’s Regulations on the Administration of Commercial Franchising requires franchisors to provide an operations manual and ongoing operational guidance, technical support and business training as agreed. Product standards need corresponding support: franchisees should not simply be required to achieve a result without being given the necessary methods and assessment criteria.

The agreement and accompanying quality schedules should specify which standards apply, how they will be supplied, who will carry out acceptance checks, how samples will be taken, how results will be recorded and how reassessment will work if a dispute arises. Where external testing is needed, agree the principles for choosing a testing organisation and allocating costs. Internal visual checks cannot replace inspections or tests required by law.

Responsibilities should also reflect the source of the problem. For example, defective materials supplied by head office should not be treated in the same way for cost-allocation purposes as an outlet changing the production method without authorisation. When a deviation is found, first retain the relevant batch, photographs, measurement data and production records, then determine corrective action based on the facts and the agreed terms. Do not turn a single successful sample check into a promise that every product subsequently made at that outlet will meet the standard.

Practical takeaway: choose one core product, complete a specification sheet, and have different employees make it and different assessors check it independently. Only incorporate these requirements into franchise agreement schedules and day-to-day operating documents once assessment results are sufficiently consistent and deviations can be traced to their causes.