What Is the Korean Franchise Disclosure Document?
If you’re planning to launch or expand a franchise in Korea, understanding the Korean Franchise Disclosure Document is your first legal step. Required by the Fair Transactions in Franchise Business Act, this document ensures transparency between franchisors and prospective franchisees.
The disclosure document must be registered with the Fair Trade Commission (FTC) or a local provincial government before any franchise agreement is signed. Without this registration, a franchisor cannot legally recruit or sign contracts with franchisees in Korea.
Why Is It Important?
The Korean Franchise Disclosure Document contains detailed information about the franchisor’s business, financials, franchise model, legal history, and existing franchisees. It is designed to help potential franchisees make informed decisions.
Registering this document properly does more than meet a legal requirement—it builds trust and credibility with franchisees. On the other hand, failing to register or submitting false information may lead to penalties or cancellation of registration.
How to Register the Korean Franchise Disclosure Document
To register your disclosure document, you’ll need to prepare and submit the following:
✅ Required Documents (continued):
- Employee Headcount Report as of the end of the most recent fiscal year
- Other Supporting Documents that may be requested by the Fair Trade Commission (FTC)
The FTC will also verify the following through Korea’s administrative data system:
- Certificate of Corporate Registration (for corporations)
- Business Registration Certificate If this certificate is not submitted at the time of application, it must be provided within 30 days after the disclosure document registration is approved.
⏳ Processing Time:
- Initial applications: Registration certificate must be issued within 30 days
- Re-applications after cancellation: Processing may take up to 2 months
Expert Insight by Michael Park, Esq.
With over 10 years of in-house counsel experience at SPC Group, Michael is a veteran of Korea’s franchise industry. He has led and managed major franchise operations for brands like Shake Shack Korea, Dunkin’ Donuts, and Baskin Robbins, giving him unmatched insight into the legal and operational realities of franchising in Korea. When it comes to the Korean Franchise Disclosure Document, few understand the system better.
Let Us Help You Register with Confidence
Registering the Korean Franchise Disclosure Document can feel overwhelming, especially if it’s your first time dealing with franchise regulations in Korea. But you don’t have to go through it alone.
At Pureum Law Office, we help franchisors prepare accurate, complete, and compliant documents—so you can move forward with confidence and peace of mind.
📩 Have questions or need help with your application?
Contact us anytime at ask@pureumlawoffice.com.
Let us help.
