"Why Is Only Baskin-Robbins Not Allowed?" Some Franchise Stores Refuse to Change Voucher Products

Some Franchise Stores Allow Only the Same Product Selection
"Head Office Policy Change" Used to Shift Responsibility
Troublesome Head Office Says "It's Right to Exchange"
Clear Policy on Exchange Vouchers Needed

Ebola (32, pseudonym) visited a Baskin-Robbins store near her home to exchange a mobile coupon for an ice cream cake she received from a coworker, only to face an awkward situation. Living alone, she found it burdensome to store a large cake in her freezer and wanted to exchange it for several individual desserts, but the staff firmly refused. The employee explained that the headquarters had changed the coupon exchange policy since last April, allowing exchanges only for the products listed on the coupon. However, Ebola found it hard to understand the refusal at this franchise, as she had previously been able to freely exchange products within the same price range at other branches or different franchise brand stores. In the end, she left the store without exchanging any product and later exchanged the cake coupon for multiple desserts at a franchise in another area.

A Baskin-Robbins franchise store in Seoul recently posted a notice stating, "Mobile vouchers can only be exchanged for the specified products." Photo by Informant

Some Baskin-Robbins franchise stores under SPC Group are refusing equivalent exchanges (buying other products worth the coupon price) using cake mobile coupons, causing growing consumer dissatisfaction. The headquarters recommends franchise stores to allow customers to exchange products as they wish to minimize inconvenience, but this is only a verbal directive, and managing the franchise stores remains challenging.

On the 18th, some Baskin-Robbins franchise stores informed customers that "mobile coupons can only be exchanged for the products listed, and if the listed product is 'sold out,' exchanges are only possible within the same product category." These stores shifted all responsibility to the headquarters, stating, "This is because the headquarters' policy changed since last April."

However, the headquarters holds a contrasting position. A Baskin-Robbins representative emphasized, "The current recommendation is that if there is a product with the same sales price as the product listed on the mobile coupon, it is correct to exchange it; if not, exchanging for a product matching the coupon amount is appropriate." They clearly stated, "It is true that a notice was sent to all franchise stores nationwide last April, but there was no policy change that makes product substitution impossible, as some franchise stores claim."

Inside and outside the industry, it is suggested that some franchise stores impose restrictions on product exchanges because they "do not want to cooperatively comply with the headquarters' policies." A franchise owner who requested anonymity argued, "We are dissatisfied that the headquarters requires franchise stores to bear costs related to frequent events and delivery fees," calling it "a kind of boycott."

The industry interprets this as some franchise owners refusing to participate in the '31 Day' promotion that the headquarters is conducting ahead of the summer peak season.

Baskin-Robbins has designated the 31st of every month as '31 Day' to hold product discount events, but on the 31st of last month, some franchise stores declared a boycott, citing increased cost burdens due to the headquarters' frequent events. These stores are known to have recently joined the National Franchise Store Owners Association. However, regarding this issue, Baskin-Robbins headquarters stated that for size-upgrades during the 31 Day event, the headquarters fully covers the ice cream needed for the promotion.

The Fair Trade Commission considers issues between companies and franchise stores as matters to be handled at the discretion of both parties. A Fair Trade Commission official said, "The headquarters likely does not have the authority to impose sanctions on franchise owners for matters not specified in the coupon." This implies that while franchise stores must operate according to headquarters' policies and regulations, they may sometimes prioritize their own interests and operational convenience.

However, experts point out that in a situation where coexistence between headquarters and franchise owners is increasingly important, discord between the two sides exacerbates consumer inconvenience. Professor Seo Yong-gu of the Department of Business Administration at Sookmyung Women's University remarked, "Currently, consumers perceive mobile coupons as having a value similar to cash, so if they cannot be substituted with other products at the store, they feel cheated, which damages trust not only in the specific store but also in the entire brand." He advised, "Since franchise businesses can only thrive if franchise stores survive, both sides need to communicate with a long-term perspective and clearly organize policies related to mobile coupons."

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