[Advisory] Review of Franchisee Compliance Requirements in Franchise Agreements

A company has successfully launched a lodging O2O service platform and is now embarking on a franchise business with lodging establishments as franchisees, aiming to become the undisputed leader in the domestic lodging O2O market. In this process, A company realized that the Franchise Business Act imposes various restrictions on franchisees to protect franchisees, and found Veat.

Veat advised A company that, as a franchising business operator, it must satisfy the requirements of the Franchise Business Act when supplying goods to franchisees in order to provide uniform services and brand image for the franchise locations. Veat also provided legal advice, judging what requirements must be met depending on the specific goods A company intends to supply, and whether the supply of goods by the franchising business operator is permissible under the Franchise Business Act.

Thank you.

Law firm Veat