Local chain Frank Burger fined for unfair biz practices

Frank F&B, operator of the handcrafted burger franchise Frank Burger, was fined for engaging in unfair practices against its franchisees, the antitrust regulator said Sunday. The Fair Trade Commission (FTC) said it imposed a fine of 641 million won ($448,032), along with corrective actions, for the company's violations of the Franchise Business Act. The company is accused of distributing franchise brochures containing false or exaggerated projected earnings to potential franchisees for about a year from January 2021. It also allegedly forced franchisees to purchase 13 items, including forks and knives, exclusively from the headquarters, even though these were not necessary for maintaining product quality. As a result, the firm earned extra franchise fees of around 140 million won. Additionally, the FTC found that after launching a new menu in May 2023, Frank Burger ran promotional events providing gifts but failed to obtain franchisee consent to cover part of the costs. "The measures are intended to support reasonable decision-making by prospective franchisees, prevent economic harm and hWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times