Franchise owners get new protection as Seoul curbs excessive penalty demands

The Seoul Metropolitan Government on Monday introduced the country's first standardized guidelines for franchise penalty fees to protect small business owners. Although the Fair Transactions in Franchise Business Act prohibits unfair or excessive penalties, the criteria remain vague. This lack of clarity has allowed some franchisors to unilaterally impose high penalties or use them to pressure franchisees into maintaining contracts. An analysis of disclosure documents and franchise contracts fro

By The Korea Herald