This Article deals with the leg.il protection of franchisees in franchise contract. A franchise business is formed with a franchise contract between a franchisor and a franchisee, but the contract is usually made when the franchisee is in a disadvanta...
This Article deals with the leg.il protection of franchisees in franchise contract. A franchise business is formed with a franchise contract between a franchisor and a franchisee, but the contract is usually made when the franchisee is in a disadvantageous economic and legal situation. Commonly, such contracts are one-sidely advantageous to the franchisor and unfairly limit the franchisee's business.
To protect the franchisee, it is important to improve the legal interpretation and application of the franchise contract. I explain the meaning and bases of Franchise Disclosure Rule, and interpret the Korean positive law related to the franchise contract.
I scrutinize the Korean regulations regarding the franchise contract information offer obligation with reference to cases in America and Japan. So that a fair franchise contract between the franchisor and the franchisee can be made, general information about the franchisor has to be open to public scrutiny.
This Article focused on the Franchise Disclosure Rule in Korea. Specifically analyzed to the duty of disclosure information, example materials of disclosure, exemptions from the disclosure requirement, rescission of the franchise contracts for misrepresentation.