China has the most franchises in the world but the scale of their operations is relatively small. Each system in China has an average of 43 outlets, compared to more than 540 in the United States. Together, there are 2,600 brands in some 200,000 retail markets. KFC was the most significant foreign entry in 1987 and is widespread. Many franchises are in fact joint-ventures, as at their forming the franchise law was not explicit. For example, McDonald's is a joint venture. Pizza Hut, TGIF, Wal-mart, Starbucks followed a little later. But total franchising is only 3% of retail trade, which seeks foreign franchise growth. The year 2005 saw the birth of an updated franchise law, “Measures for the Administration of Commercial Franchise”. Previous legislation (1997) made no specific inclusion of foreign investors. Today the franchise law is much clearer by virtue of the 2007 law, a revision of the 2005 law. The laws are applicable if there are transactions involving a trademark combined with payments with many obligations on the franchisor. The law comprises 42 articles and eight chapters.

1. According to the passage, the passage mainly talks about ().

A. the scale of franchising in China

B. the franchise law in China

C. an outline of franchising in China

2. KFC was the () foreign franchise to China in 1987 and is widespread.

A. most profound

B. first

C. wealthiest

3. Many franchises are in fact joint-ventures, because ().

A. at the beginning stage, franchise law was not so clear

B. at the beginning stage, many franchises could not find the right partners

C. many foreigners were not familiar with Chinese culture

4. Foreign franchise grows in China because of ().

A. the open policy

B. the small amount of retail trade

C. the Chinese culture

5. The writer has the ()attitude to franchising in China

A. negative

B. positive

C. neutral