Gyeonggi Province to Hold Franchise Disclosure Registration and Fine Information Session on the 25th

Gyeonggi Province will hold an online (via ZOOM) information session on the 25th to help franchisors better understand the relevant system, as the deadline for regular amendment registration of franchise disclosure documents (April 30 to June 29) approaches.

The franchise disclosure document is a report that summarizes the business status of the brand operated by the franchisor, information about franchisees, and other relevant details. It serves as an important reference for prospective franchisees to decide whether to enter into a contract. Franchisors are required to provide this information before concluding a franchise agreement. This document is registered and released after being reviewed by Gyeonggi Province.

Gyeonggi Provincial Government

According to the current "Fair Transactions in Franchise Business Act," franchisors must apply for regular amendment registration of the franchise disclosure document within 120 days after the end of each business year. In the case of sole proprietors who prepare financial statements, the application must be made within 180 days. Failure to comply results in a fine: 2 million won for the first offense, 5 million won for the second, and 10 million won for the third.

In this information session, Gyeonggi Province plans to provide practical guidance focused on the preparation and review standards for the franchise disclosure document and the criteria for imposing fines, in order to facilitate smooth registration by franchisors. Education on the recently amended law will also be included.

Seo Bongja, Director of the Fair Economy Division at Gyeonggi Province, emphasized, "Franchisors must apply for amendment registration within the specified deadline," and urged caution to avoid penalties such as fines for missing the deadline.

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