Definition of a Franchise in Korea under Korean Franchise Law and Corresponding Disclosure Requirements

A franchise, in general, in the Republic of Korea (“Korea”) is a continuous business relationship under which a Franchisor allows a franchisee to use its business marks (trademarks, service marks) to sell goods or services in accordance with certain quality standards, business methods, training and control requirements in exchange for the payment of a franchise fee (Fair Transactions in Franchise Business Act (“Franchise Act”). The Korean Fair Trade Commission and the Courts of Korea have broadly interpreted the definition to the

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Korean Franchisors’ Obligations in Korea to File Annual Report to Korean FTC

Korea’s Franchise Law imposes an obligation to report to the Fair Trade Commission of Korea, yearly, specific information relating to your franchise business worldwide.  A franchisor’s disclosure document may be de-registered or a fine may be imposed if this Yearly Franchise Report is not accepted by the Korean Fair Trade Commission within 120 days of the closing of the year. The Yearly Franchise Report, in Korea, is intended to notify franchisees and prospective franchisees of changes in the operations of

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A “Franchise” Defined under Korean Law: Franchise Law Basics

Korea Franchise Law  Korea has a very broad definition of a “franchise” under Korea’s Franchise Law. The definition of a franchise, in Korea, is noted in Korea’s Franchise Act and has been fairly consistently applied by the courts and Korea’s Fair Trade Commission. If you are deemed a franchise in Korea, you shall have disclosure and other requirements prior to offering your franchise for sale in Korea. Korea’s Franchise Act defines a franchise as: “a continuous business relationship in which

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