Franchise (Franchise Agreement)
Concept of the Information Disclosure Statement
Concept of the information disclosure statement
- The term "information disclosure statement" describes a document that contains information such as the current status of the franchise business of a franchiser, the work experience of the executive officer, charges of franchisee, conditions of and business activities, education and training for franchisee, and cancellation, revocation, renewal, etc. of the franchise agreement (Subparagraph 10 of Article 2 of the 「Fair Transactions in Franchise Business Act」).
※ An information disclosure statement is a document that contains information that a franchisee must know before entering into an agreement with a franchiser. Information disclosure statements must be registered with the Fair Trade Commission to prevent any negative effects caused by an information imbalance between a franchiser and a prospective franchisee or a franchisee in a franchise business transaction, and to protect the rights and interests of the franchisee and prospective franchisee, who are at a relative disadvantage.