According to CEO Score, a total of 87,540 businesses were registered as franchise stores in the nation as of last year. (image: Yonhap)
SEOUL, Oct. 18 (Korea Bizwire) — Approximately 1 out of 10 franchised stores selling coffee and beverages shut down last year due to sluggish sales and other factors.
Experts cite heightened competition within the saturated franchise market as the main issue, resulting in a wider polarization between successful and unsuccessful franchise business outlets.
According to CEO Score, a website dedicated to evaluating the corporate capacity of businesses, a total of 87,540 businesses were registered as franchise stores in the nation as of last year.
Meanwhile, 1,961 stores saw the end of their franchise agreement, while 3,628 stores had their contract terminated. Thus, the total number of franchised stores that closed down was tabulated at 5,589 stores.
Chain outlets that sold coffee and other beverages had the highest rate of closure (8.5 percent) followed by car dealerships and fried chicken stores (7.5 percent each).
Restaurants (7.3 percent), cosmetics stores (6.9 percent) and pizza parlors (6.4 percent) followed. Average sales at each chain outlet came to 351.46 million won last year, which was a decrease of 5.8 percent from two years ago.
Ashley Song (ashley@koreabizwire.com)
