Associations & cooperatives
Registering a Franchisee Association with the Fair Trade Commission — Registration System Effective December 31, 2026, Registration Requirements and Change Registration
Under Article 14-2 of the Fair Transactions in Franchise Business Act, franchisees may form a franchisee association and request consultation with the franchisor on trade terms such as changes to the franchise agreement. The Act as amended on December 30, 2025 takes effect on December 31, 2026 and allows an association to register with the Fair Trade Commission if it consists only of franchisees who have a franchise agreement with a specific franchisor and use the same business mark, and if it has at least the membership ratio or number of members prescribed by Presidential Decree (Article 14-3). When a registered franchisee association requests consultation, the franchisor must follow the standards and procedures, such as the number of meetings and topics, prescribed by Presidential Decree. The registration must state the name and purpose, the location of the principal office, member qualifications and the member list, the representative and officers, and the meeting and decision-making methods, and a change registration must be filed within the set period when important particulars change. The membership ratio or number, the change registration period and the application form are set by the amended Enforcement Decree, so the promulgated Enforcement Decree must be checked before applying.
Procedure
1. Check whether the association is eligible for registration
An association may register only if it consists solely of franchisees who have concluded and maintain a franchise agreement with a specific franchisor and use the same business mark. If the franchisor has several business marks, an association must be formed for each business mark, and an association that includes franchisees of another business mark does not meet the registration requirements. Registration is not mandatory, and an unregistered association may also request consultation on trade terms.
2. Check the membership size
At least the ratio prescribed by Presidential Decree of all franchisees using the same business mark must have joined, or the number of member franchisees must be at least the number prescribed by Presidential Decree. Meeting either standard is sufficient, and because the specific ratio and number are set by the amended Enforcement Decree, the figures in the promulgated Enforcement Decree must be compared with the current member list.
3. Prepare the articles of association, member list and officer details
The registered particulars are the association's name and purpose, the location of its principal office, member qualifications and the member list (including the number of members), the representative and officers, the meeting and decision-making methods, and other operational matters prescribed by Presidential Decree. These are set out in the articles of association or bylaws, the election of the representative and officers and the adoption of the articles are recorded in general meeting minutes, and the member list is organized so that each member can be confirmed as a franchisee of the same business mark.
4. Apply for registration with the Fair Trade Commission
On or after the effective date of December 31, 2026, the association applies for registration with the Fair Trade Commission by submitting an application stating the registered particulars, together with the articles of association and the member list. The Act allows registration and change registration work to be entrusted to the Korea Fair Trade Mediation Agency or similar bodies, so the actual receiving body and attachments must be checked as set by the Enforcement Decree.
5. Request consultation and manage change registration after registration
When a registered association requests consultation on trade terms, the franchisor must follow the standards and procedures prescribed by Presidential Decree, and if two or more registered associations make requests, the franchisor consults first with the association made up of more franchisees. When important particulars prescribed by Presidential Decree change, a change registration must be filed within the set period, and the registration may be cancelled if the change registration is not filed.
Required documents
- Franchisee association registration application (statutory form, to be set by the amended Enforcement Decree)
- Articles of association or bylaws (including name and purpose, member qualifications, representative and officers, and meeting and decision-making methods)
- Member list (including the number of members and each franchise store's trade name and location)
- Materials confirming that members are franchisees of the same business mark (copies of franchise agreements, etc.)
- General meeting minutes resolving the election of the representative and officers and the adoption of the articles
- Materials confirming the location of the principal office
- Letter of authorization (when filed by an agent)
Fees
Generally in the range of several hundred thousand won in the industry · We provide a quote after consultation depending on the number of franchisees, whether the articles and member list need to be newly prepared, and whether change registration management after registration is included. Government fees are separate.
Legal basis and review date
- Fair Transactions in Franchise Business Act, Article 14-2
- Fair Transactions in Franchise Business Act, Article 14-3
- Fair Transactions in Franchise Business Act, Article 39
- Fair Transactions in Franchise Business Act, Addenda (Act No. 21295), Article 1
- Fair Transactions in Franchise Business Act, Addenda (Act No. 21295), Article 2
Check these first
- A registration obtained by false or other fraudulent means must be cancelled, so the number of franchisees and the business mark in the member list must match the franchise agreement records.
- In connection with consultation, the association is prohibited from demanding trade terms contrary to the uniformity or essential matters of the franchise business, unfairly interfering in the franchisor's management, or unfairly restricting competition, so this scope should be checked when setting consultation agenda items.
Frequently asked questions
Can an unregistered franchisee association request consultation with the franchisor?
From when can a franchisee association register?
How many franchisees must join for the association to register?
What should we do if officers or members change after registration?
Does an administrative agent handle franchisee association registration applications?
Contact us
Hwang Yunsang Administrative Office in Songdo, Incheon prepares and submits administrative documents and explains the procedure. If your situation is similar, send us a message.
📍 2697, 26F POSCO Tower-Songdo, 165 Convensia-daero, Yeonsu-gu, Incheon, Republic of Korea · 📞 010-3374-2687 · 🌐 hwangadmin.com
This guide is general information based on public sources. Requirements, documents and deadlines differ by case and by the competent agency, so please confirm them before you proceed.
