The international expansion of franchising has prompted a surge of franchise-specific legislation. At least twenty-three countries have adopted some form of franchise disclosure legislation and that number seems to increase each year. There are also a number of other countries that have laws in place that impact franchise arrangements in their jurisdictions. Below we provide an overview of franchise-specific legislation as well as those laws that impact franchising in a select number of jurisdictions across the globe. We include a summary of the law, disclosure periods or required filings as well as local insights and trends in some jurisdictions. Please note that the summaries provided do not, and are not intended to, constitute legal advice and may not reflect the most up-to-date information. The summaries of a number of the countries are provided in cooperation with LexNoir Foundation and local counsel that have written for its publications or participated in it programs.
Providing false or exaggerated information or the omission of important items can lead to a penalty of up to five years of imprisonment or a fine of not more than KRW 300 million.
If Franchisor fails to meet the disclosure period requirement, Franchisor may not receive the franchise fee from Franchisee and may be subjected to a possible term of imprisonment of up to two years or a fine of up to KRW 50 million.
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