Busan City Holds Briefing Session on How to Fill Out Franchise Contracts for Purchased Steel Products

3 PM on the 6th at City Hall: Types of Essential Items and Pricing Methods in Franchise Agreements

Purpose and Practical Explanation of the Franchise Business Act Amendment Requiring Mandatory Disclosure in Franchise Contracts

The city of Busan will hold an explanatory session on the "Method of Stating Mandatory Purchase Items in Franchise Agreements" at 3:00 p.m. on the 6th in the main conference room at City Hall, targeting franchise headquarters and franchise business workers based in Busan.

This session will focus on explaining the purpose of the amendment to the "Act on Fairness in Franchise Transactions," which requires the types of mandatory items and the method of calculating supply prices to be specified in franchise agreements at the time of contract signing, as well as practical matters related to this change.

Starting July 3, franchise headquarters must state the types of mandatory items and the method of calculating supply prices in franchise agreements for new and renewed contracts, and by January 2 of next year, this requirement must also be reflected in contracts with existing franchisees.

Those wishing to participate can apply by phone to the city's Small Business Support Division.

Shin Changho, Director of the Digital Economy Bureau, said, "We expect this explanatory session to prevent market confusion following the implementation of the amended franchise law and to serve as an opportunity to make the transaction practices of mandatory items, which have often been cited as a cause of frequent disputes between franchise headquarters and franchisees, more fair and transparent."

Busan City Hall.