Good Franchise Fighting Prolonged COVID-19... "Continuing Win-Win with Franchise Owners"

[Asia Economy Reporter Lee Seon-ae] "Franchise owners must survive for the headquarters to survive."

The domestic franchise industry has extended mutual growth support for franchise owners struggling due to the prolonged COVID-19 pandemic. The judgment is that the headquarters can gain strength only when franchise owners overcome difficulties.

According to the related industry on the 3rd, chicken franchise Genesis BBQ decided not to charge interest on overdue payments for supplies from family (franchise stores) suffering from the prolonged COVID-19 outbreak until the situation calms down.

In franchise contracts of BBQ, Kyochon, bhc, etc., it is specified that the interest on overdue payments is 15% if payment for raw materials and other supplies purchased from the headquarters is delayed. BBQ stated, "In our case, we have not charged the contractual overdue interest even before," and explained, "As the COVID-19 situation prolongs and threatens the national economy as a whole, the company declares this to eliminate any concerns franchise stores might have during this time." The official also emphasized, "Payment for supplies can be made with a grace period allowing about two deliveries before payment."

The large-volume coffee franchise The Venti decided to extend special support for franchise owners following February. Previously, The Venti waived the entire February royalty fees and reduced logistics costs by 10% for about 430 franchise stores nationwide.

The Venti will also waive the entire March royalty fees for all franchise stores and reduce logistics costs by 5% for all stores, providing additional discounts based on the degree of sales decline at each franchise.

Specifically, stores with a 0-20% sales decline compared to the previous month will receive an additional 5% reduction in logistics costs. Stores with sales declines of 20-40%, 40-60%, and over 60% will receive additional discounts of 10%, 15%, and 25% respectively. Through this, franchise stores experiencing sales declines compared to the previous month will receive logistics cost reductions ranging from a minimum of 10% to a maximum of 30%.

This approach is based on providing the same support to all franchise stores but offering additional support according to the scale of damage per store to improve franchise profitability. The Venti plans to continue mutual cooperation through generous support until sales stabilize at all stores.

Representatives Kang Sam-nam, Park Su-am, and Choi Jun-kyung said, "Although the situation is difficult, we hope the support measures prepared by the franchise headquarters will be of some help," and "We pray for the situation to end soon and for the economy to recover."

Coffee specialty store Mega Coffee will bear 100% of marketing costs such as drama and radio advertisements and new menu launch promotions for the time being. Beer specialty store Yeokjeon Halmeoni Maekju supported 2 million won each to 426 franchise stores and will also bear 300 million won in advertising costs. Chicken Maru decided to reduce the price of chicken supplied to franchise stores by 5-10%.

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