Is it legal to operate in an off site chain? Whether the franchise is legal

Legal Analysis: There is no accurate definition of whether the voluntary chain operation industry is illegal. Judging from the model of the voluntary chain operation industry, its activity mode is obviously in line with the characteristics of pulling heads, paying members, and developing downlines to seek illegal benefits, which is similar to an illegal pyramid scheme, and should be illegal in principle.

However, it is not possible to adopt a "one-size-fits-all" approach, and this model also exists in some legal businesses, so whether it is legal needs to wait for the improvement of national laws.

Legal basis: Article 8 of the Provisions on the Administration of Registration of the Business Scope of Enterprises An enterprise shall apply to the enterprise registration authority for a change of registration within 30 days from the date on which the enterprise makes a resolution or decision on the change. If a licensed business project is involved, it shall apply to the enterprise registration authority for change of registration within 30 days from the date of approval by the examination and approval authority with the approval documents and certificates.

A partnership enterprise or sole proprietorship enterprise shall apply to the enterprise registration authority for a change of registration within 15 days from the date of making the decision to change its business scope.

Summary. Voluntary chain operation, also known as "special chain operation industry", "free chain operation industry", and in some areas called "Hefei 1040 Sunshine Project", "private mutual wealth management", "private partnership private equity", "pure capital operation" and so on. The names are different, but the essence is the same, they are all based on the five-level three-promotion system as a tool, engaged in the continuous invitation, development of relatives and friends in the circle of people around them as the downline, so as to achieve the purpose of wealth multiplication.

The so-called voluntariness refers to the fact that there is no restriction on personal freedom in the investigation and engagement stage of voluntary chain operation, and it is completely based on the subjective choice of the participants. It is precisely because of the particularity of voluntary chain operation that it is collectively referred to as "voluntary chain operation" in the macroeconomic regulation and control of the relevant departments and the first department. The Criminal Law of the People's Republic of China clearly stipulates that the organization is an illegal pyramid scheme.

Hello, I am lawyer Sun Shuangqiao, a cooperative lawyer of Legalis, and I am happy to serve you.

Hello. Hello.

Voluntary chain operation, also known as "special chain management industry", "free chain operation industry", and some areas call it "Hefei 1040 Sunshine Project", "private mutual wealth management", "private partnership private equity", "pure capital operation" and so on. The names are different, but the essence is the same, they are all based on the five-level three-promotion system as a tool, engaged in the continuous invitation, development of relatives and friends in the circle of people around them as the downline, so as to achieve the purpose of wealth multiplication. The so-called voluntariness refers to the fact that there is no restriction on the personal freedom of cultivating the worm in the investigation and engagement stage of the voluntary chain operation, and it is completely based on the subjective choice of the participants themselves.

It is precisely because of the particularity of the voluntary chain operation that it is collectively referred to as "voluntary chain operation" in the macroeconomic regulation and control of the relevant departments and the first department. The Criminal Law of the People's Republic of China clearly stipulates that the organization is an illegal pyramid scheme.

So this illegal pyramid scheme is illegal?

That's right. So why didn't the state arrest all these people?

We don't know about that.

All right! Thank you!

Good. It is precisely because of the particularity of voluntary chain operation that it is collectively referred to as "voluntary chain operation" in the macroeconomic regulation and control of the relevant departments and the first department.

Hello. How can this be written in the macro-control of ** and relevant departments and **, I want to ask what this means.

It is regulated by ** and or the relevant departments.

Non-local chain sales.

Abstract Non-local chain sales[1] refers to the business activities that make money by buying and selling enterprises and assets, and uses the know-how and means to increase value and benefit by using the know-how and means to increase value and efficiency. In short, it is a business activity that makes money by buying and selling enterprises and assets by using the capital market to become large and using the know-how and means to create something out of nothing.

Basics. The concept of non-local chain sales refers to the business activities that make money through the purchase and sale of enterprises and assets, and the use of small to large, with the know-how and means of creating nothing, to achieve value appreciation and efficiency growth. In short, it is a business activity that makes money by buying and selling enterprises and assets by using the capital market to become large and using the know-how and means to create something out of nothing. Issuance, issuance of bonds (including convertible corporate bonds), allotment, issuance of new shares, transfer of equity, distribution of bonus shares, conversion of share capital, equity repurchase (reduction of registered capital), merger, trusteeship, acquisition, merger, division and venture capital of enterprises, asset restructuring, stripping, replacement, transfer, or merger, trusteeship, acquisition, merger, division of enterprises, in order to achieve the improvement of capital structure or debt structure, to achieve the fundamental goal of capital operation to lay the foundation.

The origin originated in the United States, where two Jewish college students proposed in their graduation that the economic operation model of the trapezoidal institution was improved by the United States to join the exit system. He has won the Silver Eagle Award at the Asia-Pacific Direct Selling Conference. In 1998, China spent 3.2 billion US dollars to introduce and invest in the two Guangxi areas, which was strictly kept secret from the outside world.

Due to China's current national conditions and current situation is not suitable for comprehensive promotion, the country is only located in Guangxi, Hainan and other underdeveloped areas. It has been widely cited in China's financial, insurance, and banking industries, and at the same time, many illegal elements have used it for illegal pyramid marketing activities, but in fact, there is no good or bad bonus distribution system itself. China** regularly conducts large-scale macroeconomic regulation and control in the month of each year.

2] way. 1. According to the expansion and contraction of chain sales, it is divided into:

1. Expanded non-local chain sales: specifically divided into vertical chain sales, horizontal chain sales and mixed chain sales.

2. Shrinking non-local chain sales: specifically divided into asset divestiture, company division, spin-off listing, share repurchase, etc.

Second, according to the connotation and extension of non-local chain sales, it is divided into:

1. Connotative non-local chain sales: including industrial investment, listing and financing, and internal business restructuring.

2. Epitaxial non-local chain sales: including mergers and acquisitions, enterprise shareholding alliances, and external venture capital and financial investment.

Chain operation refers to the operation of similar goods or services of a number of enterprises, in a certain form to form a consortium, under the overall planning of the professional division of labor, and on the basis of the division of labor to implement centralized management, the independent business activities combined into the overall scale of operation, so as to achieve economies of scale, is a business model.

In addition to the direct chain, the most common chain business model we see may be a variety of franchise stores (franchise chains).

Since it is a business model, it is not illegal in itself. However, MLM elements often use the guise of chain management to design**, in the process of job search and investment, we must distinguish between right and wrong, rational analysis.

Question: What about non-payment of liquidated damages?

, the other party may collect evidence from the court of competent jurisdiction and request.

The other party pays liquidated damages, or requires the other party to pay the breach of contract through arbitration.

Gold. According to the provisions of the Civil Code of the People's Republic of China, the parties may:

In the event of a breach of contract, one party shall pay one to the other party according to the circumstances of the breach.

A fixed amount of liquidated damages may also be agreed upon for compensation for losses caused by the breach of contract.

Calculation method: If the agreed liquidated damages are lower than the losses caused, the People's Law.

The court or arbitration institution may increase the number at the request of the parties; Agreed.

If the liquidated damages are too high for the losses caused, the people's court or arbitration institution.

It can be appropriately reduced at the request of the parties. Delay in performance by the parties.

If liquidated damages are fixed, the defaulting party shall also perform the debt after paying the liquidated damages.

Business. Questions. It's that after I joined the chain, I don't want to do it, I don't want to make a claim, even if I lose money, so it should be fine.

Q: The industry I joined has no legislation yet.

Question: I don't want that money, that money can be used as liquidated damages, right?

I don't want that money, that money can be used as liquidated damages, right?

Answer: Whether liquidated damages are compensated for breach of labor contract needs to be determined according to the actual situation. If an employer provides a worker with special training expenses and provides him with professional and technical training, it may enter into an agreement with the worker to stipulate the service period.

If the employee violates the service period agreement, he shall pay liquidated damages to the employer in accordance with the agreement. The amount of liquidated damages shall not exceed the training fees provided by the employer. The liquidated damages required by the employer shall not exceed the training expenses that should be apportioned for the unfulfilled part of the service period.

If the employer and the employee agree on the service period, it will not affect the increase of the employee's labor remuneration during the service period in accordance with the normal wage adjustment mechanism.

It is legal to open a chain store, and playing the concept is MLM.

I don't understand if the off-site chain you're talking about is legal? Aren't all hotels, restaurants, and all kinds of sales goods a national chain? McDonald's, KFC chain all over the world, as long as it is a legal enterprise, then the chain operation is legal, why can't you engage in it?

In addition, there are some enterprises that do MLM under the banner of chains, and you must pay attention to the distinction:

Difference 1: Whether there are legal business procedures. Whether the company sells products as the basis of its operations.

Chain sales take the sale of products as the company's income. On the other hand, pyramid schemes make profits by pulling people to make profits, or by selling fake or inferior products or products of inferior quality and high price, or even no products at all.

Difference 2: Chain sales participants do not have to pay a high entry fee or be required to subscribe to a certain number of products first. MLM participants must pay a high entry fee or be required to subscribe to a certain number of products in order to pay a high entry fee in disguised form as a condition for participation, encouraging participants to cheat people to join in order to earn high profits.

Difference 3: Whether to set up a store to operate. Chain sales set up open rack or counter stores. On the other hand, the operators of MLM engage in non-store or "underground" business activities through the development of personnel and the organization of networks.

Difference 4: Whether there is an exit and return guarantee. Chain sales enterprises provide customers with perfect return protection.

However, MLM does not have a return mechanism, and the products purchased by the participants cannot be returned. However, many MLM gangs never admit that they are engaged in MLM, and always emphasize that they are chain sales or direct sales, resulting in most people being deceived.

Special reminder: All those engaged in production and business activities must be registered with the relevant departments and receive legal business certificates (such as "business licenses", etc.) before they can engage in production and business activities. Direct selling enterprises must also obtain a direct selling license issued by the Ministry of Commerce, and direct salesmen also have direct salesperson certificates.