The 「Fair Transactions in Franchise Business Act」 prescribes special provisions for franchise agreements, such as agreement cancellation procedures, agreement renewal, etc. in addition to the registration of information disclosure statements and the depositing of franchise fees, in order to establish a fair trading order for franchise businesses and to protect the rights and interests of franchisees and prospective franchisees, who can be at a relative disadvantage.

A franchisee and a franchiser that enter into a franchise agreement shall comply with what is prescribed by the laws while pursuing a franchise business. In particular, a franchiser shall not engage in trade practices that are unfair to the franchisee. Disputes (if any) may be resolved by being submitted to the Franchise Business Transaction Dispute Mediation Council.