ENGLISH

Franchise (Franchise Agreement)
Claim for Damages
Liability for losses
- If a franchiser causes any loss to a franchisee as a consequence of the franchiser's own acts, the franchisee may claim such loss from the franchiser. However, this shall not apply where the franchiser proves that the loss was neither caused intentionally nor through negligence (Main Text of Article 37-2(1) of the Fair Transactions in Franchise Business Act and Article 109(1) of the Monopoly Regulation and Fair Trade Act).
Exception to the recognition of damages
- Where it is recognized that a franchisee suffers from damage caused by a franchiser, etc., but it is extremely difficult to verify the amount of such damage given the nature of the facts, the court may recognize a reasonable amount of damage based on the gist of all arguments and the outcome of investigating evidence (Article 37-2(4) of the Fair Transactions in Franchise Business Act and Article 115 of the Monopoly Regulation and Fair Trade Act).