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Government Legislation

  • [Other] Public Notice on the Registration of Franchisee Associations and Consultation Procedures for Modification of Transaction Terms
    • Competent Ministry : Fair Trade Commission
    • Advance Publication of Legislation : 2026-07-29
    • Opinion Submission Deadline : 2026-08-18

[Background]

To prescribe detailed matters necessary for the enforcement of the registration system for franchisee associations and the mandatory consultation system with registered franchisee associations, both introduced pursuant to the amendment of the Fair Transactions in Franchise Business Act (passed the National Assembly in December 2025; scheduled to enter into force in December 2026).


[Main Points]

A. Matters Related to the Registration System for Franchisee Associations


Prescribes methods for counting members with multiple association memberships when reviewing the registration requirements of a franchisee association (Draft Article 6).


Prescribes the documents to be submitted by a franchisee association upon registration or modification registration, as well as the powers and duties of the reviewing authority (Draft Article 7).


Prescribes the powers and duties of the reviewing authority upon revocation of a franchisee association's registration (Draft Article 8).


B. Mandatory Consultation System with Registered Franchisee Associations


Prescribes the procedures for registered franchisee associations to request consultations with franchisors, as well as franchisors' obligations to prepare meeting minutes and notify consultation results (Draft Article 2).


Prescribes methods for a registered franchisee association requesting consultation to collect opinions from all franchisees, imposes an obligation to faithfully convey the collected opinions to the franchisor, and specifies the authority to request cooperation from the franchisor during the opinion-gathering process (Draft Article 3).


Prescribes procedures allowing a franchisor that has received a consultation request to invite other registered franchisee associations to participate in the consultation process (Draft Article 4).


Prescribes the restricted period during which a registered franchisee association cannot request re-consultation upon conclusion of the consultation procedure: 180 days for the same consultation agenda, and 60 days for a distinct consultation agenda (or 90 days if the total number of franchisees is fewer than 100) (Draft Article 5).

Regulatory effect assessment
Legislative proposal (draft)