The Japan Franchise Association (JFA) is the principal organization representing the franchise industry in Japan, one of the largest and most sophisticated franchise markets in the world. Since its establishment in 1972, the JFA has been dedicated to the sound development of franchising, promoting ethical business practices and contributing to the enrichment of society. It serves as the central pillar for the industry, uniting a vast network of franchisors, franchisees, and related service providers.

The JFA's core mission is to foster a reliable and transparent franchise environment. It achieves this by establishing and upholding a comprehensive Code of Ethics for its members, providing extensive educational programs, and conducting vital industry research and statistical surveys. The association is also the primary advocate for the sector, engaging with government bodies and regulatory agencies to ensure a supportive legal framework. Through its leadership, resources, and commitment to high standards, the JFA is an indispensable guide for any business involved in or seeking to enter Japan's dynamic franchise market.

Address: 2nd Akiyama Bldg., 3-6-2 Toranomon, Minato-ku, Tokyo 105-0001, Japan

Website: https://www.jfa-fc.or.jp/

Phone: +81-3-5777-8707

Fax: +81-3-5777-8711

Business Promotion Department
Email address: [email protected]

JFA works together with the government to promote the sound development of franchising in Japan. Our efforts for the amendment to the Small and Medium-sized Retail Business Promotion Act include: Revision of the model legal disclosure document and the guideline for preparation of legal disclosure documents Conducting online briefings by experts Posting on the website of a Q&A session to collect questions, etc. We also support our members and non-member franchisors by providing a model legal disclosure document and revising the guidelines for the preparation of legal disclosure documents. https://www.jfa-fc.or.jp/particle/54.html 

Franchise business-related laws and regulations

The Small and Medium-Sized Retail Promotion Act aims to promote small and medium-sized retail businesses by facilitating the implementation of projects such as the development of shopping districts, store clusters, and joint store development, and by promoting the modernization of small and medium-sized retailers' management, thereby contributing to the healthy development of the national economy. It also requires that specified chain businesses (so-called retail and restaurant franchise chains) subject to the Act provide prospective franchisees with written explanations of the headquarters' business overview and key contract terms before entering into a contract.

Furthermore, the Japan Fair Trade Commission (JFTC) has published the "Antimonopoly Act Guidelines on Franchise Systems" (hereinafter referred to as the "Franchise Guidelines"), which outlines desirable pre-contract disclosures and outlines the types of conduct that should be considered in transactions between headquarters and franchisees. These guidelines apply to franchise chains in all industries, not just retail and restaurant chains.

Please refer to the Small and Medium-sized Retail Business Promotion Act and Franchise Guidelines at the links below.

Small and Medium-Sized Retail Business Promotion Act

Antimonopoly Act Concepts Regarding Franchise Systems

Trademarks are extremely important in franchise packages. When considering joining, be sure to check whether the headquarters' trademark is registered and legally protected. You can check whether
a trademark is registered or not on the website of the Japan Patent Office, which handles registration and management.

First, understand the outline of trademarks https://www.jpo.go.jp/indexj.htm

Next, check whether the trademark is registered or not. The National Center for Industrial Property Information and Training, an independent administrative institution, has a trademark database search page https://www.inpit.go.jp/

Government agencies

Japan Fair Trade Commission: This is an organization established to enforce the Antimonopoly Act, which is an important law in the franchise business. The document "Antimonopoly Act Perspectives on Franchise Systems" is commonly referred to as the "Franchise Business Guidelines" https://www.jftc.go.jp/dk/guideline/unyoukijun/franchise.html 

e-Gov Law Search: You can search for currently enacted laws and regulations (Constitution, laws, cabinet orders, imperial ordinances, prefectural ordinances, ministerial ordinances, and regulations). This is very useful for searching for laws and regulations related to franchise businesses, such as the Small and Medium Retail Business Promotion Act https://laws.e-gov.go.jp/