Emart24 Expands Franchise Stores in Collaboration with Smoothie King... One Location, Two Stores for Double Benefits

A customer is purchasing a Smoothie King at Emart24 Jongno Daeho store.

[Asia Economy Reporter Cha Min-young] Emart24 announced on the 8th that it has created a new franchise model that allows Smoothie King to be manufactured and sold within the counter space through consultations with Smoothie King.

The 'Emart24 X Smoothie King' model is a method where a single store owner signs a franchise contract with Smoothie King separately from the Emart24 franchise contract. The significance lies in generating additional revenue while significantly reducing the investment costs incurred from opening a separate Smoothie King store.

Two franchises can be operated in one store, lowering initial investment costs, rent, and various other expenses. This differs from the existing shop-in-shop model, which operates as a leased store within the store or forms a product zone of other brands for sales.

Since it actually utilizes the existing counter space of Emart24, no separate rent is charged to the franchise. The franchise fee is about one-third compared to a standalone Smoothie King store due to the smaller scale, and Emart24 headquarters supports by prepaying Smoothie King, allowing the store owner to pay in installments of 100,000 KRW per month. The initial facility investment is also prepaid by Emart24 headquarters to Smoothie King, and the store owner pays equipment usage fees.

This Smoothie King store will mainly sell 13 popular menu items. The contract period for operating Smoothie King within Emart24 is three years, and after the contract period expires, it can be renewed annually.

Since last September, Emart24 conducted sales tests of Smoothie King within about 20 directly managed stores and judged that introducing the franchise would have an effect of securing additional revenue. Accordingly, starting in March, Emart24 plans to support franchise stores that wish to operate Smoothie King.

Furthermore, Emart24 plans to expand store openings by strengthening competitiveness through differentiated benefits for franchise stores, including this Smoothie King model, monthly fees, 24-hour non-operating stores without conditions, and category killers.

Jo Doo-il, Head of Sales at Emart24, said, "Emart24 is considering ways for franchise stores to generate additional revenue, and as part of this, we have introduced this Smoothie King model to support franchise stores. We will do our best to continuously introduce innovative models that have never existed before so that franchise store sales and profits can increase."

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