Legal Q&A

Tired of non-expert, ad-driven answers to your legal questions?
Daeryun's specialist attorneys are here to answer.

How should I prepare for and respond to a franchise dispute?

I have signed a contract with a restaurant franchise headquarters and am running a business. However, there are many parts that are very different from what was initially discussed, and many aspects are too shoddy relative to the costs I paid. Despite that, they keep trying to raise only the costs of raw materials and the like. I tried to endure it, but when the headquarters did not even send the settlement amount, I decided to resolve the matter legally. In such a case, how does a franchise dispute against the headquarters proceed?

Franchise dispute

Franchise law

Answer

Published: 2025-04-11

Author : DongIl PARK

Hello. It appears that you have raised a question related to a franchise dispute.

Usually, a franchise dispute can, by well proving that grounds for termination of the contract have arisen, lead to termination of the franchise agreement and the like.

However, even with the same provision, the situation is bound to differ depending on how it is interpreted and what the facts were.

Therefore, in order to bring about a favorable outcome in a franchise dispute, it is advisable to receive the assistance of an expert who can create an environment favorable to you.

Rather than mere assertions, you must reliably collect objective evidence that can support your position and, through it, carefully examine the occurrence of specific harm.

Commonly, a franchise contract is formed in the form of paying a certain level of franchise fee in return for receiving the headquarters' know-how.

Because the franchise agreement entered into here imposes mutual obligations, the headquarters and the person who signed the contract each have the right to terminate the contract.

However, since termination cannot be made arbitrarily in all cases, it is advisable to ascertain the matter through a consultation with an attorney with expertise.