Fast-food chain McDonald's is basing its expansion strategy for China on franchising, which it expects the Chinese government to legalise early next year, Bloomberg reported. Currently only one McDonald's outlet in China is franchised, a pilot operation in Tianjin. The remainder are either wholly owned or jointly owned with either Shanghai-based Hualian Group or Beijing Sanyuan Foods
Franchising has been successful for the company in other countries – about threequarters of its outlets worldwide are franchises – and it considers the system is well suited to Chinese conditions.