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The Born Korea representative Baek Jong-won. (Photo=Yonhap News) |
[Alpha Biz= Reporter Kim Sangjin] The Born Korea, a restaurant company led by CEO Baek Jong-won, has exaggerated the expected sales of its affiliated brand Yeondon Ball Katsu, and some franchisees have signaled a report to the Fair Trade Commission.
Seven Yeondon Ball Katsu franchise owners held a rally in front of The Born Korea headquarters in Gangnam-gu, Seoul at 1:15 pm.
Two franchisees recently decided to close their stores and attended the rally.
"The headquarters advertised its highest daily sales of 3.38 million won to 4.65 million won on its promotional website in early 2022, but sales began to decline a month after its opening," the franchisees said. "Most stores are still in the red and are suffering from debt."
Jung Yoon-ki, co-chairman of the Yeondon Ball Katsu Franchise Owners' Association, said, "The franchise headquarters promoted 30 million won in sales and 20 to 25% return, but the actual sales are only about 15 million won and the return is around 7 to 8%, so (franchisees) take only 1 million won to 1.5 million won per month."
Some store owners also said they tried to raise the price of the product, but the head office did not agree.
These shop owners plan to submit a report to the Fair Trade Commission later this week.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
