What are the detailed contents of fair trade commission franchise business transactions?

Fair trade commission franchise business transactions are commonly known to us by the term franchise.

This refers to a transaction relationship in which the headquarters, i.e., the franchisor, provides certain support and education to the store owner, i.e., the franchisee, and receives a franchise fee.

Representative examples of well-known franchise business transactions include franchise restaurants and cafes.

This franchise business transaction must follow the Franchise Business Act operated by the Fair Trade Commission, so as you asked, it is also called fair trade commission franchise business transactions.

According to the Franchise Business Act, all of the following 5 conditions must be met to qualify as a franchise business.

(1) The franchisor permits the franchisee to use the business signage

(2) The franchisee sells goods or services according to certain quality standards or business methods

(3) The franchisor performs support, education, and control over management and business activities

(4) Franchise fees are paid in exchange for the use of business signage and support and education for management and business activities

(5) Continuous transaction relationship

As such, franchise business may seem like a simple business method on the surface, but in reality, there are many matters to verify.

If you need detailed legal review to enter into a substantive franchise business transaction, we recommend that you seek advice from an attorney with expertise in the fair trade field.