Home » The franchise headquarters took a breather… “We welcome the introduction of the Franchise Business Act to the National Assembly.” [요란한 프랜차이즈]

The franchise headquarters took a breather… “We welcome the introduction of the Franchise Business Act to the National Assembly.” [요란한 프랜차이즈]

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The franchise headquarters took a breather… “We welcome the introduction of the Franchise Business Act to the National Assembly.” [요란한 프랜차이즈]

The headquarters of the ‘Ando’ franchise continues to be fearful concerning the enlargement of many organizations
The proprietor of the store mentioned, “The energy of enforcement is lowering… “It’s disappointing that it would not work.”

▲ Citizens order at a hamburger stand in Seoul. (Today DB)

The ‘Franchise Business Transaction Fairness Act (Franchise Business Act) Amendment’, which intensified the retail trade, lastly did not move the restrict of the twenty first National Assembly, which led to blended emotions between the franchise headquarters and store homeowners. While the buyer headquarters rapidly accepted the choice, the shop homeowners protested, saying, “The technique to complain concerning the abuse of energy on the franchise headquarters has disappeared.”

At the plenary session held on the National Assembly in Yeouido on the twenty eighth, 4 payments, together with the Democratic Merit Act, had been handed by the opposition alone within the National Assembly ground session with out the participation of the People Power Party. The Special Prosecution Act towards Corporal Chae was reconsidered however rejected, and the Special Recruitment Fraud Act was handed with solely opposition. In addition, among the many seven controversial payments that the Democratic Party of Korea pressured the necessity for consideration, three payments, together with the Grain Management Law, the Franchise Business Law, and the Business Law, weren’t voted on.

According to the franchise trade, the essence of the modification to the Franchise Business Law was that if a gaggle of franchise homeowners requests session on contract adjustments, transaction circumstances, and many others., the headquarters should reply. What is essential is that if they don’t adjust to that, they should be sanctioned with corrective measures and fines. The modification was handed by the lone opposition group within the National Assembly’s Committee on Political Affairs in December final 12 months and was referred to the listening to committee.

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Franchise headquarters, together with the Korea Franchise Industry Association, strongly oppose the passage of this modification, saying there are considerations that the trade will shrink. However, by means of the legislative negotiation course of, the enforcement of the modification was considerably weakened. This is as a result of the ‘corrective motion’ penalties are nonetheless there, however the ‘positive’ just isn’t included. Previously, there was a authorized provision (Article 14-2, Section 2 of the Franchise Business Law) guaranteeing the fitting of franchise homeowners to request session with headquarters, but it surely was not necessary. Accordingly, the aim of this modification was to impose sanctions if the headquarters didn’t comply.

The Amendment to the Declaration on the Enforcement of the Franchise Business Law, which goals to introduce a system for negotiating the phrases of transactions of essential objects, which was beforehand handed on the Deputy Minister’s Meeting, can also be totally different from the unique plan. Supplies confer with the tools or provides that the franchise headquarters requires franchisees to buy. This turned an issue as the top workplace of a sure enterprise was supplying valuables to merchants at costs that had been far greater than the market value.

The first modification stipulated that within the occasion of a ‘change’ or ‘upkeep’ of the phrases of a transaction of worth, session should be made in good religion, however ‘care’ was omitted. Accordingly, even when the costs of uncooked supplies and inputs lower, the headquarters doesn’t have to answer the shopkeepers’ requests for session.

However, on the day of the final session of the twenty first National Assembly, when the modification to the Franchise Business Law was not submitted, the member corporations of the Franchise Industry Association introduced that they might settle for it.

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The Franchise Industry Association mentioned in a press release on at the present time, “This modification has repeatedly did not adjust to procedures, corresponding to passing the Subcommittee of the Legislature and the Judiciary Committee, which might have resulted in a critical menace to the democracy of the Parliament if it had been handed within the debate stage.” He defined, “Since there was no session between the ruling events and the opposition events and discussions with the stakeholders, it was anticipated that the one-sided content material would trigger a major decline within the retail enterprise.”

They additionally added that, “Although this modification has not been launched within the National Assembly, the affiliation and trade will settle for the earlier course of and this can outcome as a honest need of the folks to contribute to the retail enterprise and the economic system of the nation.”

He then pressured, “We will do our greatest to make sure that the measures to enhance the priorities of the Fair Trade Commission, that are scheduled to come back into drive in July, are rapidly established within the trade and unfold a wholesome tradition of session and communication between the franchise headquarters and franchise homeowners. “

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