The catering industry is top choice for Chinese franchisees with 36% of the respondents in a recent China Franchise survey targeting the sector.

The laundering service sector follows with 29%.

Sales from franchised businesses in China are expected to make up 30% of the country's total retail sales in 2010, Shanghai Daily reports.

Currently these sales only account for about 1%, so the increase will be very dramatic.

The projection was made by eMedia Asia at the fair which ends at ShanghaiMart today.

Sales of franchise businesses in China totaled US$24.8 billion last year. That is 0.037% of the country's retail sales of RMB5.4 trillion, according to China Chain Store and Franchise Association. The country's retail sales were projected to reach more than RMB10 trillion in 2010.