The Fair Trade Commission (KFTC) has published the 2025 franchise industry statistics, analyzing data from registered disclosure documents. This annual report tracks the number of franchise headquarters, brands, and outlets, providing insights into market trends and regulatory impacts. The 2025 data shows a recovery from previous stagnation, with all major indicators—headquarters, brands, and outlets—experiencing notable growth. The KFTC attributes this positive trend to domestic demand stimulation and successful policy reforms in the franchise sector.
The updated statistics impact franchise headquarters, brand owners, franchisees, and policymakers. As of the end of 2025, there were 9,960 franchise headquarters, 13,725 brands, and 379,739 outlets registered in Korea. Growth rates compared to the previous year were 13.2% for headquarters, 10.9% for brands, and 4.0% for outlets. All major sectors—food service, services, and retail—saw increases in both brand and outlet numbers, with food service dominating in both categories. The average franchise outlet revenue rose to 370 million KRW, outpacing the average for small businesses.
The statistics reflect data as of the end of 2024 for outlet numbers and sales, and as of the end of 2025 for headquarters and brands. The KFTC’s ongoing reforms include mandatory disclosure, required consultation with franchisee associations, and explicit contract termination rights for franchisees. These measures aim to stabilize franchisee operations and ensure balanced industry growth. The Commission plans to continue monitoring the sector and supporting both quantitative and qualitative improvements.
Frequently asked questions include: What are the main drivers of franchise industry growth? The KFTC cites domestic demand policies and regulatory reforms as key factors. How are disputes over franchise fees being addressed? The Commission is monitoring increases in differential franchise fees and implementing measures to prevent excessive charges. What support is available for franchisees? Policy actions include improved disclosure, mandatory consultation, and enhanced contract rights to protect franchisees’ interests.
The 2025 franchise industry data confirms a strong rebound in Korea’s franchise market, with growth in headquarters, brands, and outlets. The Fair Trade Commission’s reforms—especially around disclosure, consultation, and contract rights—are driving more balanced development. However, the rise in differential franchise fees highlights the need for ongoing oversight to prevent disputes and protect franchisees. The KFTC’s proactive approach is well-aligned with the sector’s needs, but continued monitoring and stakeholder involvement remain essential for sustained, equitable growth.