+
46
Promotion of franchised business operations
Following is a question by the Hon Huang Chen-ya and a reply by the Secretary for Trade and Industry, Mr T H Chau, in the Legislative Council today (Wednesday):
Question:
In 1992, a team of staff in the Business Management Service Unit of the Hong Kong Productivity Council (HKPC) were assigned special responsibilities for promoting franchised business operations. A laundry operated under such mode of operation, which was one of the companies widely promoted by the HKPC, had been involved in commercial disputes. In this connection, will the Government inform this Council whether
(a)
(b)
Answer:
the HKPC has conducted a review of the promotion of the laundry concerned; and
the termination of the consultancy service by the HKPC to promote franchised business operations was a result of the involvement of the above-mentioned laundry in commercial disputes; if not, what were the reasons for the termination of the service?
In 1992 and 1993, the Hong Kong Productivity Council organised a programme of events to familiarise the business community with the general concept of franchising, including two study missions to the International Franchise Expo in the United States, and two exhibitions. The Council did not specifically promote any particular company or operation, although examples were used to illustrate the concept. It follows, therefore, that the Council has not conducted the sort of review referred to in part (a) of the Honourable Member's question.
The Hong Kong Franchising Association, which was formed by the Hong Kong General Chamber of Commerce in 1992, played an increasingly active role in promoting the franchising concept, and organised a third exhibition in 1993. The Productivity Council concluded that the Association was better placed to continue promotional work in connection with the franchising concept, and the Council therefore decided to cease its active involvement in 1993. This decision was not taken for the reason set out in part (b) of the Honourable Member's question.
End/Wednesday, March 8, 1995