SEOUL, Oct. 10 (Korea Bizwire) — South Korea’s franchise industry is showing widening fault lines between franchisors and franchisees, as corporate headquarters enjoy rising revenue while their outlets grapple with falling earnings. Data released Friday by corporate tracker Leaders Index revealed that across seven key sectors — coffee and beverages, fried chicken, pizza, convenience stores, bakeries, [...]
SEOUL, April 15, (Korea Bizwire) — A new industry survey has found that restaurant franchise owners in South Korea take an average of two years and seven months to recover their initial investment, while more than half continue to pay fees to headquarters long after opening. According to a report released Monday by the Korea [...]
SEOUL, July 26 (Korea Bizwire) — With backlash from franchisees growing over the South Korean unit of German sports brand Adidas’s decision to unilaterally terminate franchise contracts, lawmakers have stepped in to scrutinize the issue. The office of Rep. Choi Seung-jae, a member of the ruling People Power Party and the National Assembly’s National Policy [...]
SEOUL, Jan. 1 (Korea Bizwire) — In the midst of the government banning gatherings of more than five people to prevent the spread of the coronavirus, convenience store owners and franchise headquarters have conflicting interests when it comes to convenience stores’ 24-hour operating system. Store owners insist that their ‘late night’ operations should be stopped [...]
SEOUL, Sept. 20 (Korea Bizwire) — A recent study has revealed that South Korea imposes harsher regulations on franchise owners than the United States. The Korea Economic Research Institute (KERI) said that South Korea has more than twice as many regulations on franchises than in the United States. South Korean regulations tended to focus on [...]
Paris FRANCE, Aug. 9 (Korea Bizwire) – Sia Partners, a leading independent consulting firm in France and pioneer of Consulting 4.0, announces the launch of its affiliate program, which aims to recruit partner firms that will use Sia Partners’ brand, international expertise, and Consulting 4.0 ecosystem under franchise. FOUNDING PRINCIPLES OF THE AFFILIATE PROGRAM Since [...]
SEJONG, Jan. 24 (Korea Bizwire) – South Korea’s antitrust watchdog said Thursday that franchisees can file a suit against their franchise headquarters to seek compensation for damages brought on by bad management. The Fair Trade Commission included the mandatory measure in a revised standard franchisee deal that covers convenience stores, food service outlets and retail and [...]
SEOUL, Sept. 12 (Korea Bizwire) – A South Korean business person is calling out Subway, the sandwich franchise headquartered in the U.S., for having an unfair franchise agreement and conciliation policy. The franchise agreement stipulates that when a Subway restaurant is ordered to shut down by headquarters, the only way for the restaurant to challenge the [...]
SEOUL, Dec. 22 (Korea Bizwire) – Despite much larger sales, franchisees in South Korea earn less money than owners of stand-alone stores due to higher costs, a report said Thursday. The operating margin for one-man franchise stores in the wholesale and retail sectors came to 12.8 percent in 2014, 10.5 percentage points lower than that [...]
SEOUL, Oct. 18 (Korea Bizwire) – As of early next year, it will be difficult to open a coffee shop franchise in an area designated as “Seoul Forest Avenue”, which is now undergoing gentrification, the process of renovating and improving a house or district so that it conforms to the middle class, leading to the [...]