Convenience Store CU "95% Resolution Rate in Voluntary Dispute Mediation Committee"

In Case of Disputes During Franchise Contract Execution, Seek Reasonable Resolution Through Voluntary Mediation
About 75% of Approximately 80 Applications Resolved Early, Remaining 25% Accept Settlement Proposals in Main Review
Model Case of Reaching Agreement Through Internal System and Voluntary Efforts Before External Agency Intervention

[Asia Economy Reporter Seungjin Lee] CU announced on the 14th that the mediation resolution rate of the 'Voluntary Dispute Resolution Center,' which it first launched in the industry in 2013 to promote coexistence and mutual growth with franchisees, has reached 95%.

The CU Voluntary Dispute Resolution Center is an organization that seeks prompt and reasonable solutions through voluntary mediation involving stakeholders and external experts when disagreements arise between franchisees and the headquarters during the execution of franchise contracts. Over the past seven years, the center has received a total of about 80 mediation requests, of which approximately 60 cases, accounting for 75%, were resolved early.

Cases submitted for dispute mediation undergo a preliminary mediation stage led by dispute mediation officers from each regional sales department who listen to voices from the field before the main review. During this process, mutual voluntary efforts are prioritized, leading most cases to early agreements.

The remaining 25% of cases not resolved during the preliminary mediation proceed to a formal hearing attended by external experts. So far, most of the proposed agreements, except for a few cases, have been accepted, resulting in an overall 95% of cases being amicably resolved.

The CU Voluntary Dispute Resolution Center has established itself as a model case for creating a self-sustaining ecosystem in the convenience store franchise business and establishing fair trade order by facilitating amicable agreements through internal systems and voluntary efforts before external institutions intervene when conflicts arise between franchisees and headquarters.

The high mediation agreement rate of the CU Voluntary Dispute Resolution Center is due to the mediation committee’s deep understanding of the franchise business, combined with professionalism, fairness, and sincere efforts to resolve disputes. The voluntary dispute resolution procedure begins when a franchisee applies for dispute mediation via registered mail, followed by scheduled steps such as preliminary mediation and hearings, leading to agreement and resolution. The final dispute resolution is decided unanimously by the mediation committee.

The mediation committee consists of three external members, including lawyers and law professors with extensive experience in franchise business dispute mediation, along with a franchisee representative and a headquarters representative from the sales development division, both elected by vote.

Meanwhile, CU continues its efforts this year to strengthen franchisees’ rights and improve profitability by signing coexistence agreements with franchisees and implementing lifecycle management programs.

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