bhc for 'unilateral termination of franchise contract', fined 350 million won

Reporter Kim Jisun / approved : 2023-12-27 04:46:18
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[Alpha Biz=(Chicago) Reporter Kim Jisun] The Fair Trade Commission said on the 26th that it will impose a fine of 350 million won and a correction order on the bhc of the chicken franchise headquarters, which unilaterally terminated the franchise contract without any justifiable reason and stopped supplying goods.

When the injunction of franchisee A, which is in dispute with the head office, was not accepted by the court, bhc notified the termination of the franchise contract in October 2020 and suspended the supply of goods.

The Fair Trade Commission said that it was a violation of the Franchise Business Act that bhc notified the franchise owner of the termination of the franchise contract, citing its decision to cancel the injunction.

He also pointed out that the reason for the court's cancellation of the injunction is not related to the legality of the termination of the franchise contract, which became the cause of the dispute. The Fair Trade Commission also issued a warning against bhc's act of depriving franchisees of their right to decide on the price of delivery app products.

The Fair Trade Commission judged that forcing each merchant to adjust and maintain the sale price of delivery apps en masse constitutes a price restraint prohibited by the Merchant Business Act.

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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