Focus: Asia Franchise Markets April 2016 | Page 23

Franchise Law.

Japan Market

2. Guidelines concerning the
franchise system fall under the Act
on Prohibition of Private
Monopolization and Maintenance
of Fair Trade. This Act states a
franchise system as:

The running of a small medium
enterprise falls under the SME Act.

“The franchise system is defined
in many ways. However, the
franchise system is generally
considered to be a form of
business in which the head office
provides the member with the
right to use a specific trademark
and trade name, and provides
coordinated control, guidance,
and supports for the member’s
business and its management.
The head office may provide
support in relation to the selling
of commodities and the provision
of services. In return, the member
pays the head office.”

Foreign investment is regulated
by the Foreign Exchange and
Foreign Trade Act.

Laws regarding Limited liability
partnerships fall under the
Limited Liability Partnership Act.

Franchisors can register
trademarks to protect such marks
from infringing use under the
Unfair Competition Prevention
Act.
Leased property disputes with
franchisees or landlords is covered
in the Land and Building Leases
Act.