Pilot Operation of 'Gamaeng Comprehensive Support Center'... Close Support for Small Franchise Headquarters and Store Owners Struggling with COVID-19 Challenges

Support Center to Begin Pilot Operation from the 22nd... Full-scale Operation Scheduled for the First Half of Next Year

Comprehensive Franchise Support Center Tasks and Processing Procedures.

[Asia Economy Reporter Joo Sang-don] The Franchise Comprehensive Support Center, which provides continuous professional consultation in one place on all aspects of franchise transactions including startup, operation, closure, and re-startup, and offers comprehensive multi-faceted support measures to practically resolve difficulties and grievances caused by COVID-19, will begin pilot operation.

On the 21st, the Fair Trade Commission announced that the pilot operation of the Franchise Comprehensive Support Center will start from the 22nd.

Previously, the Fair Trade Commission held a public contest to select a competent institution. After reviewing the business plans and operational capabilities of the applicant institutions, the Korea Fair Trade Mediation Agency was designated as the Franchise Comprehensive Support Center. The support center is scheduled to be fully operational from early 2021 when all necessary personnel and resources for business execution are secured. However, until then, it will begin pilot operations by utilizing available resources to provide services that can be offered.

First, it will conduct consultations and handle grievances. To prevent startup damages for prospective franchisees, it will provide expert consultation regarding franchise contracts and disclosure documents, while offering franchisees optimal solutions (dispute mediation, reporting, litigation, etc.) when consulting on unfair practices by franchisors.

In the first half of next year, it will provide re-startup support consulting to help failed entrepreneurs switch industries and restart businesses, aiming to establish an ecosystem where business know-how circulates positively. Consultation services will be available beyond business hours for busy franchisees. Additionally, to prevent worsening conflicts between franchisors and franchisee associations and to promote mutual consultation, regular meetings between franchisors and franchisee associations will be held to prevent disputes in advance or assist in amicable dispute resolution through mediation. Important opinions identified through regular meetings will also be reflected in the Fair Trade Commission’s policy initiatives.

The support center will continuously encourage participation in the 'Good Franchise' movement, which shares the pain with franchisees, and promote explanatory sessions and incentives to expand the number of companies participating in the Fair Trade Agreement, currently limited to 12 franchisors. In the first half of next year, it plans to discover and disseminate various autonomous win-win cooperation models so that exemplary coexistence projects carried out at the individual company level can spread throughout the market. It will also provide litigation representation and complaint drafting support services for small-scale franchisees who meet certain criteria.

A Fair Trade Commission official stated, "The support center will serve as a channel to quickly and practically support the difficulties and conflicts of those working in the franchise sector affected by COVID-19 and to convey the voices from the field necessary for the promotion of franchise-related laws and policies. We plan to secure personnel and resources as quickly as possible to ensure the normal operation of the support center."

This content was produced with the assistance of AI translation services.