TFTC made amendments to the Guidelines Governing the Business Operation of Franchisors

TFTC made amendments to the Guidelines Governing the Business Operation of Franchisors

In view of the rapid development in franchising business in Taiwan, the Fair Trade Commission promulgated the 'Guidelines Governing the Business Operation of Franchisors' (before 2011, 'the Guidelines Governing Disclosure of Information by Franchisors') to maintain the trading order of franchise market and to ensure free and fair competition in the industry. Recently, to ensure the trading order of franchise market more effectively, the Commission consulted with experts and market participants and further amended the Guidelines. The main points of the amendments are regarding the timing of disclosure, the category of information to be disclosed, the ways of disclosure and the justifiable grounds for nondisclosure of information by franchisors.