"Overcoming COVID-19 Through Cooperation"... 43 Franchises Actively Support Franchise Stores

(From left) Hwang Jun-beom, CEO of Myeongryunjinsagalbi Yeouido Branch; Park Young-sun, Minister of SMEs and Startups; Jeong Hyun-sik, President of the Korea Franchise Industry Association; Won Jong-min, Chairman of the Myeongryunjinsagalbi Franchisee Council

[Asia Economy Reporter Choi Saeng-hye] Amid serious damage such as sales decline suffered by franchise stores due to concerns over the spread of the novel coronavirus infection (COVID-19), members of the Korea Franchise Industry Association are actively participating in supporting franchise stores and vulnerable groups, practicing coexistence.

As of the 4th, the association announced on the 5th that, after collecting the status of coexistence support measures to overcome the COVID-19 crisis from member companies, a total of 43 member companies are supporting approximately 25,600 franchise stores and affected local communities at their own expense.

Among the support methods, the highest proportion was exemption or reduction of monthly royalties for 1 to 3 months. Kim Ga Ne, King Kong Budaejjigae, Bbonddarak Pizza, Yeonan Sikdang, Sulbing, Koo Koo, Atelier Beauty Academy, Bu-eong-i Donkatsu, Lian Hair, Haru En Soku, Jeo Hair, and Lee Gimbap are implementing royalty exemption or reduction policies to alleviate the management burden on franchise stores.

▲ Hygiene products and quarantine support (Big Star Pizza, Namdareun Gamjatang, BBQ, Cleantopia, Topresso, Pizza Maru, Koo Koo, Namdareun Gamjatang, Bulmak Yeolsam, etc.) ▲ Essential goods support and supply price reduction (Yankee Candle, Coffee Bay, Saenghwal Maekju, Tous Les Jours, Jiho Korean Herbal Samgyetang, Yamsem Gimbap, Mom’s Touch, Barda Kim Seonsaeng, Lotteria, etc.) ▲ Delivery app fees and discount promotion cost support (7th Street Pizza, Go Pizza, Garten Beer, Ddobongi Tongdak, Jin-i Chanbang, Hwapo Sikdang, etc.) were also counted as major types.

Other methods include Myeongryun Jinsa Galbi supporting one month’s rent (about 2.3 billion KRW) for 124 franchise stores nationwide, Yeokjeon Halmeoni Maekju providing cash of 2 million KRW per franchise store (totaling about 1 billion KRW), and Mega Coffee supporting cash of 1 million KRW. Hansot Dosirak boosted franchise morale by donating 10 million KRW and providing a total of about 9,000 servings of Samgyetang to all franchise stores, while Paris Baguette, Kyochon Chicken, Bonjuk, Mexicana Chicken, and AmorePacific are practicing coexistence through donations and in-kind support to local communities and relief organizations.

The association is also focusing on spreading a culture of coexistence among member companies and preparing government support measures. At the ‘Good Franchise Roundtable’ held on the 4th with Park Young-sun, Minister of SMEs and Startups, and Kang Hyung-jun, CEO of Myeongryun Jinsa Galbi, Association Chairman Jung Hyun-sik appealed, “Although franchisors are also facing great difficulties, they are considering countermeasures to coexist with franchise stores, so we ask the government to proactively assist.”

An association official said, “Many franchisors are experiencing great difficulties as the worsening business environment has been dealt a decisive blow by COVID-19,” adding, “However, since many association members are participating in supporting franchise stores with the mindset that ‘franchise stores must survive for franchisors to survive,’ we hope the government and the National Assembly will take a more active role in supporting the franchise industry.”

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