Theborn Korea to Fully Cover Franchisees' Monthly Rent Card Payment Fees

First in the Franchise Industry: Headquarters to Fully Cover Transaction Fees
Baek Jongwon: "We Will Create a Fair and Equitable Consultation Model"

Theborn Korea is introducing a 'monthly rent card payment service' to alleviate the operational cost burden on franchise owners. Under this system, franchisees can pay their monthly rent using a credit card, and all associated transaction fees will be fully covered by the headquarters.

On the 28th, a commemorative photo was taken after the regular meeting of Theborn Korea Win-Win Committee.
Photo by Theborn Korea

On July 29, Theborn Korea announced that it had made this decision during the 2nd regular meeting of the 'Theborn Korea Coexistence Committee,' which was held in the annex conference room in Seocho-gu, Seoul. The Coexistence Committee is an official consultative body comprising franchisee representatives, headquarters executives, and external experts, and was launched on June 30.

This measure is aimed at helping franchisees secure cash liquidity. When franchisees pay their monthly rent by card through Korea Credit Data's business management platform 'Cash Note,' the headquarters will cover the transaction fees. Theborn Korea explained, "This reflects concerns about 'operational cost gaps' raised during small-scale franchisee meetings."

The introduction of card payments for ingredient purchases to ease difficulties in fund management has also been confirmed. The adoption of card payments for ingredient purchases has also been finalized. In addition, the committee discussed several other agenda items, including: ▲ production of promotional content related to the Livelihood Recovery Support Fund ▲ conversion of fixed royalties to monthly installment payments ▲ reporting on ESG-linked external social contribution activities (such as flood relief support projects) ▲ status of the use of the 30 billion won coexistence support fund, as well as reports on the outcomes of agenda items passed at the previous meeting ▲ improvement measures for overall delivery fees ▲ social contribution using food trucks ▲ and proposals for specialized marketing support. A headquarters committee member who attended the meeting stated, "We will go beyond simple dedicated financial products to establish a practical and systematic coexistence process."

This decision marks Theborn Korea's third large-scale coexistence initiative, following the '30 billion won coexistence support plan' announced in May and the '50% reduction in delivery sales royalties' confirmed at the first Coexistence Committee meeting last month. CEO Baek Jongwon stated at the time of the coexistence plan announcement, "We will not leave a single franchisee behind," and pledged, "We will reform our organization and culture with unwavering determination." At the meeting, CEO Baek reiterated, "There may be shortcomings, but we will create a fair and equitable consultation model," and emphasized, "We will strive to become a good example of coexistence."

The meeting was also attended by external committee members including Ahn Jingul, Director of the People’s Livelihood Economy Research Institute (former Citizens' Committee Chair of People's Solidarity for Participatory Democracy), Yoo Hyosang, Director of the Unicorn Management and Economy Research Institute (former Dean of CHA University Graduate School of Business), and Koo Jungmo, attorney at Deoksu Law Firm.

External committee member Ahn Jingul stated, "Theborn Korea must overcome the crisis and move forward," adding, "I will do my best to help create an exemplary model of coexistence." External committee member Yoo Hyosang commented, "Theborn Korea demonstrates a strong commitment to protecting both franchisees and the company, which is encouraging as an external member," and added, "If franchisees propose many ideas, I will work to ensure they are reflected."

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