The development and utilization of limited natural resources, the allocation of public resources, and the market access of specific industries directly related to public interests can establish administrative licenses. Administrative agencies shall make decisions on these matters through fair competition such as bidding and auctions. Where laws and administrative regulations have other provisions, follow those provisions. Based on this provision, the use and allocation of a large number of limited public resources in society can set administrative licenses. And licenses in this field are franchises.
According to the above definition, tobacco monopoly license and production license of narcotic drugs belong to administrative franchise.