What Is the Korean Franchise Disclosure Document and How Do You Register It?

What Is the Korean Franchise Disclosure Doc?

In case you’re planning to launch or broaden a franchise in Korea, understanding the Korean Franchise Disclosure Doc is your first authorized step. Required by the Truthful Transactions in Franchise Enterprise Act, this doc ensures transparency between franchisors and potential franchisees.

The disclosure doc should be registered with the Truthful Commerce Fee (FTC) or an area provincial authorities earlier than any franchise settlement is signed. With out this registration, a franchisor can not legally recruit or signal contracts with franchisees in Korea.

Why Is It Essential?

The Korean Franchise Disclosure Doc incorporates detailed details about the franchisor’s enterprise, financials, franchise mannequin, authorized historical past, and current franchisees. It’s designed to assist potential franchisees make knowledgeable selections.

Registering this doc correctly does greater than meet a authorized requirement—it builds belief and credibility with franchisees. Then again, failing to register or submitting false info might result in penalties or cancellation of registration.

Easy methods to Register the Korean Franchise Disclosure Doc

To register your disclosure doc, you’ll want to organize and submit the next:

✅ Required Paperwork (continued):

Worker Headcount Report as of the tip of the latest fiscal yearOther Supporting Paperwork which may be requested by the Truthful Commerce Fee (FTC)

The FTC can even confirm the next by means of Korea’s administrative knowledge system:

Certificates of Company Registration (for companies)Enterprise Registration Certificates If this certificates just isn’t submitted on the time of software, it should be supplied inside 30 days after the disclosure doc registration is accepted.

⏳ Processing Time:

Preliminary purposes: Registration certificates should be issued inside 30 daysRe-applications after cancellation: Processing might take as much as 2 months

Professional Perception by Michael Park, Esq.

With over 10 years of in-house counsel expertise at SPC Group, Michael is a veteran of Korea’s franchise trade. He has led and managed main franchise operations for manufacturers like Shake Shack Korea, Dunkin’ Donuts, and Baskin Robbins, giving him unmatched perception into the authorized and operational realities of franchising in Korea. In relation to the Korean Franchise Disclosure Doc, few perceive the system higher.

Let Us Assist You Register with Confidence

Registering the Korean Franchise Disclosure Doc can really feel overwhelming, particularly if it’s your first time coping with franchise laws in Korea. However you don’t need to undergo it alone.

At Pureum Legislation Workplace, we assist franchisors put together correct, full, and compliant paperwork—so you possibly can transfer ahead with confidence and peace of thoughts.

📩 Have questions or need assistance together with your software?Contact us anytime at ask@pureumlawoffice.com.Allow us to assist.