Lotte GRs Operates '20 Billion Won Win-Win Fund' for COVID-19 Franchise Stores

[Asia Economy Reporter Lee Seon-ae] Lotte GRS announced on the 12th that it will carry out a win-win support campaign for franchise stores struggling due to the spread of the novel coronavirus infection (COVID-19) and related medical staff nationwide.

Following the extension of payment deadlines for goods to some franchise stores in the Daegu and Gyeongbuk regions, Lotte GRS has prepared the following support measures for franchise stores nationwide to overcome the difficulties caused by the COVID-19 situation together.

Lotte Ria will provide ▲hygiene supplies support ▲disinfection cost support ▲postpone payment deadlines for goods to temporarily closed stores, and Angel-in-us will ▲exempt 100% of brand royalties ▲support interest on franchise store loans. Additionally, the American original doughnut brand Krispy Kreme will support the cost of returned doughnuts based on franchise store sales to help reduce the burden on franchise stores.

Furthermore, products will be selectively provided to medical staff and support organizations related to COVID-19 in various regions nationwide. The campaign is conducted with the hope of offering some help to the medical staff who work tirelessly day and night to care for the health of the people.

In addition, Lotte GRS signed a business agreement for a ‘win-win growth cooperation project to overcome COVID-19’ with IBK Industrial Bank of Korea. According to this agreement, Lotte GRS will deposit 10 billion KRW interest-free with IBK, and IBK will use this fund to provide low-interest ‘win-win growth cooperation loans.’ The loan interest rate for Angel-in-us franchise stores struggling due to COVID-19 will be automatically reduced by 1.75%, and depending on credit rating, it can be reduced up to 3.15%. Lotte GRS also signed a business agreement with Woori Bank to establish a 10 billion KRW win-win fund to support franchise stores’ mutual growth, which is currently in operation.

A Lotte GRS official said, “Amid concerns about a continuous economic downturn due to COVID-19, we deeply appreciate the franchise stores and medical staff who are dedicating themselves despite many difficulties to protect the lives of the people,” and added, “We have prepared the COVID-19 overcoming campaign to overcome this crisis together.”

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