1. Reasons for Amendment

This Amendment to the Decree addresses franchisers who unilaterally expand the scope of required items and increase the unit cost by stipulating an obligation to consult with the franchisee when unfavorably modifying the terms of business and prescribing that the consultation procedure shall be determined in advance and included as an essential item in the agreement, thereby aiming to prevent franchisers from abusing their power through required items.

2. Major Provisions

A. Include a consultation procedure between the franchiser and franchisee when expanding the scope of required items, modifying the method of unit cost calculation, or otherwise modifying the terms of business as an essential item of the franchise agreement (subparagraph 7 of Article 12).

B. Add the inclusion of any compulsion of the other party in the franchise agreement and the consultation of the franchisee in good faith when unfavorably modifying the terms of business to the requirements for exception from exclusive dealing (subparagraph 2 (b) of [Table 2]).

C. Prescribe detailed procedures for stays of proceedings in relation to cases where dispute mediation takes place at the same time as a legal procedure (Article 19, Article 27).