BGF Retail and Fair Trade Commission Announce Win-Win Agreement for 2,300 Long-Term Operating Stores

[Asia Economy Reporter Jo In-kyung] BGF Retail, the operator of convenience store CU, is further strengthening trust with its decade-long franchisees.

On the 29th, BGF Retail held a 'Long-term Store Win-Win Agreement Proclamation Ceremony' at the Korea Fair Trade Mediation Agency located in Jung-gu, Seoul, attended by Lee Geon-jun, CEO of BGF Retail, Cho Sung-wook, Chairman of the Fair Trade Commission, Kim Hyung-bae, Director of the Fair Trade Mediation Agency, and other officials.

The Long-term Store Win-Win Agreement focuses on the stable contract renewal between franchise headquarters and franchise stores that have been operating for more than 10 years. The process is made more transparent to strengthen mutual trust and create a healthy franchise environment under a shared goal.

Under the Act on the Fairness of Franchise Transactions, the right to request contract renewal is recognized for less than 10 years, so long-term operating stores were not guaranteed contract extensions. Accordingly, the Fair Trade Commission created the "Guidelines for Stable Contract Renewal of Long-term Stores" in 2019 and has recommended it to the franchise industry.

Last year, BGF Retail became the first in the industry to add a clause promoting stable contract renewal for long-term stores in its win-win cooperation agreement, leading efforts to protect franchisees' rights. The main points include ▲principally allowing contract renewal for long-term stores ▲complying with the Franchise Business Act and related laws when deciding on contract renewal ▲adhering to contract renewal procedure guidelines.

Additionally, since 2017, BGF Retail has annually signed win-win agreements and presented industry-leading win-win models such as ▲developing franchise fee reduction models ▲introducing the industry's first voluntary holiday and condolence leave system ▲establishing an autonomous dispute mediation center. It also operates extensive support systems to strengthen partnerships with franchisees, including reducing or waiving business penalty fees and enrolling in the four major social insurances for accidents and disasters.

Based on this systematic support and strong trust with franchisees, the number of franchise stores operating CU for more than 10 years reaches about 2,300, the highest among franchise companies participating in this proclamation ceremony.

Lee Jun-geon, CEO of BGF Retail, said, "We regard franchise stores that have led CU together for a long time as valuable partners, and amid difficult circumstances, we will continue dialogue with franchisees through various communication channels so that BGF Retail’s responsible management can shine even more."

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