Fair Trade Commission Chairman Jo Sung-wook: "Prioritizing 'Franchise Sector Disputes' Related to COVID-19"

Cho Sung-wook, Chairman of the Fair Trade Commission (file photo)

[Asia Economy Reporter Joo Sang-don] Chairman Cho Sung-wook of the Korea Fair Trade Commission met with franchise owners on the 18th and emphasized, "We will prioritize resolving disputes in the franchise sector related to the novel coronavirus infection (COVID-19) to ensure the prompt relief of franchise owners' damages."

On the same day, Chairman Cho visited Paris Baguette, Innisfree, and Mapo Galmaegi located in the 'Euneungjeongi' cultural street near Jungangno Station in Jung-gu, Daejeon, to check on the situation regarding store damage prevention and promotional events.

At the meeting, Chairman Cho said, "Let the headquarters and franchise owners work together to minimize damage and restore sales to normal," adding, "If the franchisor and franchisees strive together to overcome difficulties, consumer anxiety will be alleviated, and franchise store sales will recover."

Paris Baguette previously supplied only factory-manufactured finished products in packaging, but now also individually packages store-made products to strengthen hygiene management. They have also placed hand sanitizers for consumers and mandated the use of masks and disinfectants by store employees to prevent and curb the spread of COVID-19.

Innisfree has adjusted discount event periods and increased the proportion of promotional event costs borne by headquarters to minimize COVID-19 damage. They also distributed store hygiene guides and provided hand sanitizers and masks.

Mapo Galmaegi is making efforts to preserve franchise owners' profits by thoroughly managing hygiene and adjusting the price increase range when major food ingredient prices rise.

Chairman Cho stated, "If there are damages to franchise owners or conflicts with franchisors related to COVID-19, franchisors should make swift efforts for internal dispute resolution in the spirit of sharing pain and coexistence," and added, "The Fair Trade Commission will prioritize handling COVID-19 related disputes in cooperation with local governments to which the work has been delegated."

This content was produced with the assistance of AI translation services.