Disputes Between Convenience Store Franchisors and Franchisees Persist... Seven-Eleven Leads in Number
In the Past 5 Years, Convenience Store Franchise Dispute Mediation Cases Reach 623!
Assemblyman Shin Jeong-hoon Urges Urgent Special Measures to Eradicate Unfair Trade Practices
[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Seven Eleven has been revealed to have the highest number of disputes with franchisees among domestic convenience store franchises.
According to the National Assembly audit data submitted by Shin Jeong-hoon, a member of the National Assembly's Industry and Energy Committee (Democratic Party of Korea, Naju-Hwasun), from the Korea Fair Trade Mediation Agency, the total number of convenience store franchise dispute mediation cases received by the Fair Trade Mediation Agency from 2016 to the end of September this year was 623.
By brand, the number of dispute mediation cases received was highest for Seven Eleven with 169 cases, followed by Ministop with 139 cases, CU with 124 cases, and Emart24 with 88 cases.
The number of cases received by year surged from 57 cases in 2016 to 118 cases in 2017, and 173 cases in 2018, maintaining a similar level with 168 cases last year. This year, 107 cases have been recorded up to the end of September.
By type, ▲ civil and other types accounted for the most with 239 cases, ▲ violation of the obligation to prohibit false or exaggerated information provision with 122 cases, ▲ unfair burden of compensation obligations (unfair trade practices) with 103 cases, ▲ abuse of trading position (unfair trade practices) with 69 cases, ▲ infringement of business area with 34 cases, and so on. In particular, the number of cases corresponding to unfair trade practices accounted for 29% of the total.
Out of the 169 dispute mediation cases received for Seven Eleven, only 119 cases were successfully mediated. Among the remaining 50 cases, 14 were unsuccessful, and 32 cases ended due to reasons such as filing lawsuits or withdrawal of applications, with 4 dispute mediation cases currently ongoing.
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Representative Shin said, "Franchisees, who are already struggling due to the COVID-19 crisis, are being pushed to the brink by the headquarters' abuse of power," and pointed out, "Urgent and special measures are needed to eradicate widespread unfair trade practices throughout franchise business transactions such as convenience stores."
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