Greater than 3,000 restaurant, beverage and takeout retailer franchisees beneath Theborn Korea are locking horns with Korea’s principal union for franchisees, as the corporate’s franchise homeowners declare their livelihood is beneath risk due to the union’s criticisms of Theborn Korea.
On the heart of the disaster is Theborn Korea founder and CEO Paik Jong-won, who rose to the highest of the meals leisure scene on the again of his franchise empire, however has since come beneath hearth for controversies surrounding his companies.
The movie star meals entrepreneur is now caught between mounting strain from either side. Theborn Korea franchise homeowners have welcomed Paik’s current return to tv, believing his visibility will assist enhance their gross sales.
The Korea Franchisee Union (KFU), nevertheless, has sharply criticized his comeback, arguing that the continued development of his enterprise by way of his media presence stays an issue. The union says Paik should show that his firm, which operates 25 meals and beverage manufacturers and three,200 franchise shops nationwide, just isn’t depending on his private fame.
The disaster peaked on Wednesday when about 500 protesters staged a rally in entrance of KFU’s Seoul workplace. The group included Theborn Korea franchise homeowners, in addition to enterprise homeowners from Yesan Market in South Chungcheong Province, whose eateries had benefited from Paik’s promotional work.
The protest adopted a press convention held by the KFU on Nov. 11 opposing Paik’s return to tv. Paik halted all TV appearances in Might, however criticism resurfaced after MBC aired “The Chef of Antarctica,” a present he filmed final yr.
On the protest, franchisees demanded KFU cease “smearing” Theborn Korea’s public picture by criticizing Paik and his enterprise strategies. They mentioned the union is spreading misinformation by saying the corporate is illegally abusing its franchises. They added the union is advocating just for 5 Theborn Korea franchisees who wish to “steal from the corporate by submitting a grievance in opposition to it to the Honest Commerce Fee with ungrounded prices.”
Franchise homeowners from Theborn Korea’s model Yeondon Ball Katsu sued the corporate final yr for allegedly offering them with false data on potential earnings to influence them to open extra shops.
“KFU has turned its again on us. And the 5 Yeondon franchisees who’ve joined KFU and are actually criticizing the corporate utilizing distorted knowledge and malicious, grasping intent don’t signify us, the three,000 Theborn Korea franchisees,” the protesters mentioned in a press release on Thursday.
Theborn Korea founder and CEO Paik Jong-won is proven on a promotional poster for a Hong Kong Banjum restaurant in Seoul, Might 13. Hong Kong Banjum is among the firm’s franchise manufacturers. Newsis
The protesters mentioned their declining gross sales are attributable to KFU, the 5 Yeondon franchises and YouTubers who’ve criticized Paik and his firm, prompting customers to keep away from Theborn Korea manufacturers. They mentioned KFU can be attempting to strain the corporate into offering restitution for falling gross sales numbers solely to the 5 Yeondon franchises, ignoring the monetary difficulties of different manufacturers beneath Paik’s umbrella.
“We’re hardworking individuals whose livelihoods are actually in severe jeopardy due to misinformation unfold by the coalition group,” the Theborn Korea franchisees mentioned.
KFU mentioned Thursday that losses have been brought on by Paik, not by their marketing campaign or the lawsuit. The union mentioned Theborn Korea has structural issues from specializing in development primarily based on Paik’s public picture and thru aggressive franchise growth.
KFU mentioned it requested for dialogue with the protestors on Wednesday however was denied. It added that the corporate’s structural issues have victimized all of its franchisees, not simply the 5 Yeondon branches, and Paik and Theborn Korea should deal transparently with its companions.
“What we want proper now just isn’t a standoff however a coalition of all Theborn Korea franchises to demand restructuring of enterprise operations,” KFU mentioned. “We demand Paik cease making new manufacturers and victimizing extra franchisees and as an alternative prioritize enhancing gross sales and offering restitution to manufacturers and shops which have suffered and are actually past company rehabilitation.”
A Theborn Korea official informed The Korea Occasions on Thursday that the corporate “shares its franchisees’ desperation” and “will assist them by not shying away from making public bulletins to forestall additional rumormongering in opposition to our manufacturers.” He added that the protest on Wednesday was deliberate and carried out by franchise homeowners with out notifying the corporate.
Paik got here again from enterprise journeys to the USA and Thailand on Wednesday and returned to his workplace on Thursday, in line with the official. The CEO has been abroad to hunt new partnerships to broaden the corporate’s international markets and promote an all-purpose sauce lineup that was launched in September.
