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Deals & Cases

Violation of the Fair Transactions in Franchise Business Act

Uijeongbu Attorney Assistance | With the Assistance of the Uijeongbu Attorney, a Report of a Fair Transactions in Franchise Business Act Violation Leading to a Corrective Measure and a Penalty Surcharge

The client who requested the assistance of the Uijeongbu attorney visited the Uijeongbu office of Daeryun Law Firm to file a report of a violation of the Fair Transactions in Franchise Business Act.

CONTENTS
  • 1. The Client Who Visited the Uijeongbu Attorney
    • - How the Client Came to Visit the Uijeongbu Attorney
    • - The Statutes Related to the Case, Explained by the Uijeongbu Attorney
  • 2. The Assistance Provided by the Uijeongbu Attorney
    • - The Uijeongbu Attorney's First Form of Assistance
    • - The Uijeongbu Attorney's Second Form of Assistance
  • 3. The Result of the Uijeongbu Attorney's Assistance, “Corrective Order and Penalty Surcharge Disposition”
    • - Do You Need the Help of the Uijeongbu Attorney?

1. The Client Who Visited the Uijeongbu Attorney

The client who visited the Uijeongbu attorney had entered into a contract with a brand company and conducted business, but due to various unexpected problems he encountered great difficulty, and he urgently requested a consultation with the Uijeongbu attorney.

How the Client Came to Visit the Uijeongbu Attorney

Uijeongbu Attorney

This is the account of the client who held a consultation with the Uijeongbu attorney.

The client had entered into a franchise agreement with the brand company B and was operating a store.

While operating the store, he learned that the quality of the main products supplied by the head office differed from the description given at the time of the contract.

As complaints from customers mounted due to the decline in product quality, sales dropped sharply, and a situation even arose in which many customers demanded refunds.

Accordingly, the client requested that the head office resolve the problem on several occasions, but the head office did not respond to this at all.

Ultimately, the client came to consider terminating the contract with the head office.

The client visited the Uijeongbu office of Daeryun Law Firm and held a legal consultation.

The Statutes Related to the Case, Explained by the Uijeongbu Attorney

The statutes related to the case, explained by the Uijeongbu attorney

Sanctions Imposed by the Fair Trade Commission for a Franchise Business Transaction Violation

Corrective measures - The Commission may order the franchisor to deposit franchise fees, provide disclosure documents and the like, pay the cost of store environment improvements, refund franchise fees, cease the violation, report a plan or conduct necessary to correct the violation, and take any other measures necessary to correct the violation.

Penalty surcharge - The Commission may impose on the franchisor a penalty surcharge not exceeding an amount calculated by multiplying the revenue prescribed by Presidential Decree (in the case of a business operator prescribed by Presidential Decree, this refers to operating revenue; the same shall apply hereinafter) by 2/100.

Punishment for a Franchise Business Transaction Violation Before the Fair Trade Commission

Fair Transactions in Franchise Business Act


Article 41 (Penal Provisions) A person who, in violation of Article 9 (1), engages in the act of providing false or exaggerated information or in the act of providing deceptive information shall be punished by imprisonment for not more than 5 years or a fine not exceeding 300 million won.

2. The Assistance Provided by the Uijeongbu Attorney

Through consultation with the client, the Uijeongbu attorney closely examined the specific facts and systematically analyzed the evidentiary materials.

The Uijeongbu attorney provided the client with a tailored solution through the following assistance.

The Uijeongbu Attorney's First Form of Assistance

In order to prove that the products supplied by the franchisor were clearly different from the quality standards specified at the time of the contract, the Uijeongbu attorney thoroughly analyzed the client's sales records and customer refund data to secure evidentiary materials.

The Uijeongbu Attorney's Second Form of Assistance

In order to prove that the head office had failed to respond appropriately even though the client had repeatedly raised the quality problems with the franchisor, the Uijeongbu attorney reviewed the emails and materials that the client had exchanged and submitted them as evidence.

3. The Result of the Uijeongbu Attorney's Assistance, “Corrective Order and Penalty Surcharge Disposition”

The Fair Trade Commission, accepting the Uijeongbu attorney's argument, imposed a corrective measure and a penalty surcharge on the party under investigation.

Satisfied with the outcome, the client visited the Uijeongbu office and repeatedly expressed his gratitude.

Do You Need the Help of the Uijeongbu Attorney?

At Daeryun Law Firm, specialized attorneys with extensive experience in handling related cases provide their utmost assistance for the rights and interests of clients.

If you are experiencing difficulties in a situation similar to the case above, please feel free to request the assistance of the Uijeongbu attorney of Daeryun Law Firm at any time.

의정부변호사

This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.

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