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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] This year, CEO Baek Jong-won's The Born Korea, which is planning an IPO, is in conflict with some franchisees of its dining brand, Yeondon Ball Katsu.
Amidst The Born Korea's application for a preliminary review for KOSPI listing on May 29th, some Yeondon Ball Katsu franchisees reported The Born Korea to the Fair Trade Commission last month, accusing the company of violating the Franchise Business Act and the Fair Trade Act.
The Yeondon Ball Katsu franchisees claim that the headquarters guaranteed monthly sales of around 30 million KRW and profit margins of 20-25%, but actual sales were only 15 million KRW, with profit margins around 7-8%.
The Born Korea maintains that it never promised specific sales or profit margins, but there are concerns that the Fair Trade Commission complaint by some Yeondon Ball Katsu franchisees could negatively impact The Born Korea's IPO.
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
