Free guides for buying a franchise and franchising your business in Hong Kong, plus the latest articles from the Quality Franchise Association.
Practical guides to buying a franchise in Hong Kong: choosing a brand, due diligence, costs, finance and local rules.
View all articles GuidesStep-by-step guides to franchising your business in Hong Kong: readiness, legal documents, fees, recruitment and local regulation.
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Minimum sales targets are more than operational benchmarks: they may determine whether you retain your franchise rights. Before signing, check how targets are calculated, what support the franchisor will provide, when exemptions apply and how shortfalls can be remedied, so that a temporary dip in sales does not put your right to operate at risk.
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Franchise costs are not confined to the agreement: operations manual updates can also increase spending. Before signing, check the manual’s contractual status, amendment powers, notification procedures and responsibility for additional costs.
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Insurance held by the franchisor does not automatically cover your franchise outlet. Before signing, check who arranges the insurance, which activities are covered, the excesses and the claims procedures, so that your cover matches your contractual responsibilities.
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Non-compete clauses in a franchise agreement may affect your ability to open a business, take a job or invest after leaving. Before signing, clarify the restricted activities, geographical scope, duration and exceptions, and assess common law and competition law risks separately.
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A membership system supplied by the franchisor does not give franchisees unrestricted use of customer data. Before signing, clarify collection purposes, access rights, marketing arrangements and responsibility for data when the franchise ends.
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Hong Kong has no dedicated pre-sale franchise disclosure regime, so buyers should not assume the franchisor will volunteer all material information. Learn how to build document requirements, review periods and update obligations into the transaction.
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A consistent brand identity does not mean every franchise outlet must copy the flagship store. From fit-out specifications and budget approval to concealed works and inspection records, franchisors should distinguish brand requirements from professional responsibilities to reduce disputes.
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Franchising requires you to share business know-how, but not to give unrestricted access to everything. From information classification and confidentiality clauses to access logs, build a system that supports franchisees while protecting trade secrets.
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Company-owned shops can use uniform pricing, but franchisees are independent operators. Franchisors should clarify recommended prices, promotion participation and who funds discounts, while assessing risks under Hong Kong’s Competition Ordinance.
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“Ongoing support” should be more than a franchise recruitment promise. Clearly define its scope, response times, escalation procedures and any additional charges, so franchisees know whom to contact and head office can deliver on its commitments.
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When franchise partners disagree, a clause saying that “both parties will resolve matters through discussion” is not enough. This article helps Hong Kong businesses set out dispute notices, management-level negotiations, mediation, and litigation or arbitration arrangements, so unclear procedures do not send costs spiralling.
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A successful company-owned outlet does not mean the same brand will succeed everywhere. Franchisors should establish site assessments, on-site observations and written approval procedures so franchisees understand the basis and limits of each approval.
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Spanish Greek frozen yoghurt brand MYKA opened its first Asian flagship in Hong Kong’s Central district in September. Its founders outlined daily in-store production and ingredient traceability requirements, and revealed plans to enter the Philippines next.
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LH Group has signed a franchise agreement with Singapore’s Gohan for its Hao Guo Ri Zi brand, with one outlet open by the end of June 2026. The group also holds a 29.4% stake in Gohan, combining brand licensing with equity investment in its overseas expansion.
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Hong Kong’s private pickleball venues reportedly grew from around three early last year to about 20, with AAPA’s franchise fee put at HK$350,000. Prospective investors should distinguish franchise fees from total investment costs and sellers’ profit claims.
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