CU Announces Next Year's Franchisee Win-Win Agreement... Budget Increased by Over 20%

Expansion of Waste Disposal Support Limits

CU announced a win-win agreement with franchise stores for next year. (Photo by BGF Retail)

[Asia Economy Reporter Lim Chun-han] CU announced on the 18th that it has increased its budget by more than 20% compared to this year to expand the scope of support in next year’s franchisee win-win support plan.

In this win-win plan, the monthly maximum waste support limit per store for 41 categories including ready meals, desserts, refrigerated side dishes, fruits and vegetables, and side dishes was increased from the existing 400,000 KRW to 500,000 KRW. The existing new product introduction support system (up to 150,000 KRW per month) will be maintained, and a new ‘low-turnover product withdrawal support system’ allowing the return of products that have not been sold for a long time was established. Under this system, 50,000 KRW is paid quarterly to franchisees based on the new product introduction rate in the previous quarter.

To support franchisees struggling due to the recent rapid interest rate hikes, the interest support system of the win-win cooperation fund will be expanded. The loan amount eligible for interest support has been significantly increased from 20 million KRW to 50 million KRW, and the eligibility criteria have been greatly relaxed. This system involves the headquarters supporting part of the loan interest rate.

The product liability insurance newly introduced last year, which was previously limited to instant cooking, will expand its coverage to include all food and non-food items. This allows immediate compensation if customers suffer damage from expired or spoiled products, helping to avoid unnecessary disputes.

The win-win and welfare programs provided to franchisees will also be maintained. CU franchisees can use ▲corporate condos and resorts ▲exclusive welfare malls ▲indirect damage compensation insurance for frozen and refrigerated foods ▲discounts on nationwide comprehensive health checkups ▲free labor, legal, and tax consultations ▲free enrollment in safe work insurance ▲and labor management solutions.

A BGF Retail official said, “As the effects of this year’s win-win support plan, which focused on improving profitability through solid investment, have become visible, we have maintained the overall support direction and expanded and adjusted the criteria for detailed items. We will continue to add and supplement various systems to enhance store competitiveness and strengthen our partnership with franchisees.”

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