ENFORCEMENT DECREE OF THE FRANCHISE BUSINESS PROMOTION ACT
Presidential Decree No. 20839, jun. 20, 2008
Amended by Presidential Decree No. 23535, Jan. 25, 2012
Presidential Decree No. 24442, Mar. 23, 2013
Presidential Decree No. 25751, Nov. 19, 2014
Presidential Decree No. 27099, Apr. 19, 2016
Presidential Decree No. 28212, Jul. 26, 2017
| Article 2 (Procedures, etc. for Development of Basic Plans) |
| (1) | The Minister of Trade, Industry and Energy shall formulate a basic plan for the promotion of the franchise business (hereinafter referred to as a "basic plan") under Article 4 (1) of the Franchise Business Promotion Act (hereinafter referred to as the “Act”) by synthesizing sectoral plans submitted by related central administrative agencies. In this case, a sectoral plan of the Ministry of Interior and Safety shall comprehensively reflect the opinions of local governments. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 27099, Apr. 19, 2016; Presidential Decree No. 28212, Jul. 26, 2017> |
| (2) | The Minister of Trade, Industry and Energy may formulate guidelines on the preparation of sectoral plans to be submitted by related central administrative agencies under paragraph (1) and notify such guidelines to the heads of related central administrative agencies. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (3) | Deleted. <by Presidential Decree No. 27099, Apr. 19, 2016> |
| (4) | Where necessary for formulating a sectoral plan referred to in paragraph (1), the heads of related central administrative agencies may request for the submission of necessary materials from related administrative agencies, local governments, public institutions under the Act on the Management of Public Institutions (hereinafter referred to as “public institutions”), research institutes, universities, etc. |
| Article 3 (Procedures, etc. for Development of Implementation Plans) |
| (1) | The Minister of Trade, Industry and Energy shall formulate an implementation plan for the promotion of the franchise business under Article 5 of the Act (hereinafter referred to as an "implementation plan") after the submission of sectoral implementation plans by related central administrative agencies. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27099, Apr. 19, 2016> |
| (2) | An implementation plan shall include each of the following: |
| 1. | Project implementation details, including details of projects by business unit, project entity, required funds and financing plans therefor, methods for performing projects, etc.; |
| 2. | Matters related to the administrative support provided by related Ministries and agencies, including financial support, etc.; |
| 3. | Other matters necessary to pursue an implementation plan. |
| (3) | The heads of related central administrative agencies shall submit their sectoral implementation plans for the following year to the Minister of Trade, Industry and Energy by the end of October each year. In this case, a sectoral implementation plan of the Ministry of Interior and Safety shall comprehensively reflect the opinions of local governments. <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 25751, Nov. 19, 2014; Presidential Decree No. 28212, Jul. 26, 2017> |
| (4) | Where the heads of related central administrative agencies intends to formulate sectoral implementation plans, they shall consult in advance with the Minister of Trade, Industry and Energy in order to ensure consistency with a basic plan. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (5) | Deleted. <by Presidential Decree No. 27099, Apr. 19, 2016> |
| (6) | Where necessary for formulating a sectoral implementation plan, the heads of related central administrative agencies may request for the submission of necessary materials from related administrative agencies, local governments, public institutions, research institutes, universities, etc. |
| (7) | Unless there is a compelling reason not to do so, an implementation plan shall be finalized by the end of November each year. <Amended by Presidential Decree No. 27099, Apr. 19, 2016> |
| Article 4 (Scope, etc. of Fact-Finding Surveys) |
| (1) | The scope of a survey on the status of the franchise business referred to in Article 7 (1) of the Act (hereinafter referred to as an “actual condition survey”) shall be as follows: |
| 1. | Matters related to the market conditions and business environment of the franchise business; |
| 2. | Matters related to the logistics and informatization environment of the franchise business; |
| 3. | Matters related to the current conditions of human resources and the supply of and demand for human resources in the franchise business; |
| 4. | Matters related to the current status of technologies related to the franchise business and the protection of industrial property rights; |
| 5. | Matters related to international trends in the franchise business; |
| 6. | Matters related to the transaction practices between franchise headquarters and franchisees; |
| 7. | Other matters necessary for the formulation and execution of policies for the promotion of the franchise business. |
| (2) | The Minister of Trade, Industry and Energy shall conduct a fact-finding survey in accordance with the following classifications: <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| 1. | Regular survey: a survey to be conducted every three years for the formulation and execution of plans and policies related to the franchise business; |
| 2. | Occasional survey: a survey to be conducted when deemed necessary by the Minister of Trade, Industry and Energy for the efficient formulation of basic plans, implementation plans, etc. |
| (3) | Where the Minister of Trade, Industry and Energy conducts an actual condition survey, he/she shall determine the criteria for the selection of persons to be subject to a survey, and inform them of a survey plan in advance which shall include the date, purpose, contents, etc. of a survey. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (4) | Where the Minister of Trade, Industry and Energy formulates a survey plan referred to in paragraph (3), he/she shall consult in advance with the heads of related central administrative agencies. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (5) | The Minister of Trade, Industry and Energy may use electronic means such as information and communications networks, electronic mail, etc. in order to conduct fact-finding surveys efficiently. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (6) | After performing the survey on the actual conditions of the franchise business, the Minister of Trade, Industry and Energy shall publicly announce the results thereof. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| Articles 5 and 6 Deleted. <by Presidential Decree No. 27099, Apr. 19, 2016> |
| Article 7 (Entrustment of Duties) |
| (1) | The Minister of Trade, Industry and Energy may entrust the duties specified in Article 18 (1) 1 through 4 of the Act to any of the following corporations or organizations in accordance with Article 18 (1) of the Act: <Amended by Presidential Decree No. 23535, Jan. 25, 2012; Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27099, Apr. 19, 2016> |
| 3. | Specialized institutions or organizations designated and publicly announced by the Minister of Trade, Industry and Energy from among the specialized institutions or organizations related to franchise business which are recognized as having expertise in the duties specified in Article 18 (1) 1 through 4 of the Act. |
| (2) | The Minister of Trade, Industry and Energy may entrust the duties specified in Article 18 (1) 5 of the Act to any of the following corporations or organizations, in accordance with Article 18 (1) of the Act: <Amended by Presidential Decree No. 24442, Mar. 23, 2013; Presidential Decree No. 27099, Apr. 19, 2016> |
| 2. | Specialized institutions or organizations designated and publicly announced by the Minister of Trade, Industry and Energy, from among specialized institutions or organizations related to the franchise business which are recognized as having expertise in the duties specified in Article 18 (1) 5 of the Act. |
| (3) | Where the Minister of Trade, Industry and Energy intends to designate a corporation or organization under paragraphs (1) 3 and (2) 2, he/she shall select a corporation or organization with an exceptional track record, etc. regarding the duties to be entrusted. <Amended by Presidential Decree No. 24442, Mar. 23, 2013> |
| (4) | Where the Minister of Trade, Industry and Energy entrusted duties as prescribed in paragraphs 1 and 2, he/she shall public announce the person entrusted with duties and duties entrusted thereto in the official gazette. <Newly Inserted by Presidential Decree No. 27099, Apr. 19, 2016> |
ADDENDUM
This Decree shall enter into force on June 22, 2008.
ADDENDA <Presidential Decree No. 23535, Jan. 25, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 26, 2012.
Articles 2 and 3 Omitted.
ADDENDA <Presidential Decree No. 24442, Mar. 23, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 25751, Nov. 19, 2014>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 5 Omitted.
ADDENDUM <Presidential Decree No. 27099, Apr. 19, 2016>
This Decree shall enter into force on the date of its promulgation: Provided, That the amended provisions of Article 7 (1) and (2) shall enter into force on April, 28, 2016.
ADDENDA <Presidential Decree No. 28212, Jul. 26, 2017>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 4 Omitted.