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
Presidential Decree No. 29721, Apr. 30, 2019
Presidential Decree No. 32838, Aug. 2, 2022
| Article 2 (Procedures for Development of Basic Plans) |
| (1) | The Minister of Trade, Industry and Energy shall formulate a basic plan for the promotion of franchise (hereinafter referred to as "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 such cases, a sectoral plan of the Ministry of Interior and Safety shall comprehensively reflect the opinions of local governments. <Amended on Mar. 23, 2013; Nov. 19, 2014; Apr. 19, 2016; 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 on Mar. 23, 2013> |
| (3) | Deleted. <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 for Development of Implementation Plans) |
| (1) | The Minister of Trade, Industry and Energy shall formulate an implementation plan for the promotion of franchise under Article 5 of the Act (hereinafter referred to as "implementation plan") after the submission of sectoral implementation plans by related central administrative agencies. <Amended on Mar. 23, 2013; 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 such cases, a sectoral implementation plan of the Ministry of Interior and Safety shall comprehensively reflect the opinions of local governments. <Amended on Mar. 23, 2013; Nov. 19, 2014; Jul. 26, 2017> |
| (4) | Where the heads of related central administrative agencies intend 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 on Mar. 23, 2013> |
| (5) | Deleted. <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 on Apr. 19, 2016> |
| Article 4 (Scope of Fact-Finding Surveys) |
| (1) | The scope of a survey on the status of franchise referred to in Article 7 (1) of the Act (hereinafter referred to as “actual condition survey”) shall be as follows: <Amended on Apr. 30, 2019> |
| 1. | Matters related to the market conditions and business environment of franchise; |
| 2. | Matters related to the logistics and informatization environment of franchise; |
| 3. | Matters related to the current conditions of human resources and the supply of and demand for human resources in franchise; |
| 4. | Matters related to the current status of technologies related to franchise and the protection of intellectual property rights; |
| 5. | Matters related to international trends in franchise; |
| 6. | Matters related to the transaction practices between franchise headquarters and franchisees; |
| 7. | Other matters necessary for formulating and executing policies to promote franchise. |
| (2) | The Minister of Trade, Industry and Energy shall conduct a fact-finding survey in accordance with the following classifications: <Amended on Mar. 23, 2013; Aug. 2, 2022> |
| 1. | Regular survey: A survey to be conducted every two years for formulating and implementing plans and policies related to franchise; |
| 2. | Occasional survey: A survey to be conducted when deemed necessary by the Minister of Trade, Industry and Energy for efficiently formulating basic plans, implementation plans, etc. |
| (3) | Where the Minister of Trade, Industry and Energy conducts an actual condition survey, he or she shall determine the criteria for selecting persons to be subject to a survey; and shall inform them of a survey plan in advance which shall include the date, purpose, contents, etc. of a survey. <Amended on Mar. 23, 2013> |
| (4) | Where the Minister of Trade, Industry and Energy formulates a survey plan referred to in paragraph (3), he or she shall have a prior consultation with the heads of related central administrative agencies. <Amended on 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 on Mar. 23, 2013> |
| (6) | After performing the survey on the actual conditions of franchise, the Minister of Trade, Industry and Energy shall publicly announce the results thereof. <Amended on Mar. 23, 2013> |
| Article 5 (Establishment and Operation of Information System for Supporting Overseas Expansion) |
| (1) | To efficiently establish and operate an information system for supporting overseas expansion under Article 16-2 (1) of the Act (hereinafter referred to as "information system for supporting overseas expansion"), the Minister of Trade, Industry and Energy may perform the following duties: |
| 1. | Research and development and technical support related to the establishment and operation of the information system for supporting overseas expansion; |
| 2. | Cooperation related to the interlinked establishment of information and data related to overseas expansion; |
| 3. | Standardization and sophistication of the information system for supporting overseas expansion; |
| 4. | Other duties necessary for promoting the establishment and operation of the information system for supporting overseas expansion. |
| 1. | Information and data about the regions, size, etc. of the overseas markets into which domestic and overseas franchise expand; |
| 2. | Information and data about the expansion of franchise into overseas markets by major type of business, such as food service business, wholesale and retail business, and service business; |
| 3. | Information and data about infringement on intellectual property rights and dispute cases by major type of franchise business, such as food service business, wholesale and retail business, and service business. |
[This Article Newly Inserted on Aug. 2, 2022]
“Activities prescribed in Presidential Decree” in subparagraph 5 of Article 17 of the Act means the following: | 1. | Mutually beneficial cooperation between franchise headquarters and franchisees; |
| 2. | Nurturing specialized personnel in franchise. |
[This Article Newly Inserted on Apr. 30, 2019]
| Article 7 (Entrustment of Duties) |
| 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. | Specialized institutions or organizations designated and publicly announced by the Minister of Trade, Industry and Energy, from among specialized institutions or organizations related to franchise which are recognized as having expertise in the duties specified in Article 18 (1) 5 and 6 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 or she shall select a corporation or organization with an exceptional track record, etc. regarding the duties to be entrusted. <Amended on Mar. 23, 2013> |
| (4) | Where the Minister of Trade, Industry and Energy entrusted duties as prescribed in paragraphs 1 and 2, he or she shall public notify the person entrusted with duties and duties entrusted thereto in the Official Gazette. <Newly Inserted on Apr. 19, 2016> |
ADDENDA <Presidential Decree No. 20839, Jun. 20, 2008>
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.
ADDENDUM <Presidential Decree No. 29721, Apr. 30, 2019>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 32838, Aug. 2, 2022>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Change in Frequency of Fact-Finding Surveys)
The amended provisions of Article 4 (2) 1 shall begin to apply to regular surveys conducted after this Decree enters into force.