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Subject

Franchise Agreement and positive violation of claims
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프랜차이즈계약과 적극적 청구권침해

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Type
Academic journal
Author
Journal
은행법학회 은행법연구 은행법연구 제12권 제2호 KCI Accredited Journals
Published
2019.1
Pages
37 - 61 (25page)

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Franchise Agreement and positive violation of claims
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Abstract· Keywords

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The franchise business has a unified business model so that even inexperienced people can easily access small businesses. The franchise has a social function of creating jobs more efficiently by providing a systemized and integrated scheme, and it is an excellent business model of present and the future for anyone with small amount of capital to easily access and overcome economic problems. The franchise business also plays a role in enabling consumers to purchase products and receive services at a standardised and unified price. On the other hand, in comparison with the franchise headquarters, franchisees are in a subordinate position in terms of legal, economic, and informational level which is a high-risk business model that can be unfairly misused. Not only are most franchise contracts advantageous to the franchise headquarters, but also the contents of the contracts are complex and extensive, making it difficult for the franchisees, most of them inexperienced in business, to understand them easily. Moreover, it is true that often franchisees lack the ability to easily understand and cope with problems when receiving false profit structure information by the franchise headquarters. And most franchise contracts often involve franchisees to bear an unequal burden on management risk. In order to solve the problems of inequality, the Act on the Fairness of Merchant Business Transactions and the Enforcement Decree of the Act were enacted. These restrict the terms and conditions of franchise headquarters to achieve an equal and balanced business model. However, these regulations are regulated as an administrative law, and do not constitute a direct legal remedy for cases of unfair transactions, unfulfilled or incomplete defaults, and torts. The solution to this problem is to apply the remedy through the active infringement system, which emerged from the principle of good faith. Therefore, in the event of a breach of trust through violations of ancillary obligations, contractual obligations, and counter party protection obligations that appear in franchise agreements, a compensation for the damages must be imposed. It is clear that our judicial system does not allow people to create contracts that undermine universal equality among private people through any combination or modification of contract structures or through contracts that avoid their obligations.

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