Seoul Issues Public Notice on Fines for 2025 Franchise Disclosure Breaches

The Seoul Metropolitan Government has issued a public notification regarding administrative fines for violations related to franchise information disclosure obligations for the 2025 business year. This “public notice of service” (공시송달) method is utilized when direct communication with the concerned parties, typically franchise headquarters, has been unsuccessful, making it a legal means to formally deliver administrative decisions.

Under South Korea’s Fair Franchise Transactions Act, franchisors are legally mandated to prepare and register a Franchise Information Disclosure Statement (가맹사업 정보공개서). This crucial document provides prospective franchisees with essential information about the franchisor’s business, including financial status, management capabilities, operational policies, estimated investment costs, and the obligations of franchisees. The requirement aims to protect potential franchisees by ensuring transparency and enabling informed decision-making before signing a franchise agreement.

The administrative fines announced by Seoul are targeted at franchisors who have failed to meet these disclosure obligations for the upcoming 2025 business year. Non-compliance could involve not registering the required statement, failing to update it, or submitting incomplete or inaccurate information. This enforcement action underscores the Seoul Metropolitan Government’s commitment to fostering fair trade practices and safeguarding the rights of individuals looking to invest in franchise businesses within the capital.

Affected parties, whose direct notification attempts have failed, are formally advised to consult the official public notice for the full details of the administrative penalties. While specific names of violators, exact fine amounts, and appeal procedures are not detailed in this public announcement, they would be available through the full public notice published on official Seoul Metropolitan Government channels. It is crucial for concerned businesses to check these official sources for specific instructions and deadlines.

Source: 서울특별시 — Original Notice (Korean)