Myeongryun Jinsa Galbi Faces FTC Review Over Franchisee Loan and Interior Cost Claims

Myeongryundang, the operator of the restaurant brand Myeongryun Jinsa Galbi, has come under review by South Korea’s Fair Trade Commission after controversy over alleged high-interest lending to franchisees and claims that it imposed excessive interior construction costs. According to a Yonhap report from Sejong, the FTC is examining whether the lending terms offered to franchisees and the way store interior expenses were charged violated franchise business rules. The case highlights tensions between food franchise headquarters and store owners over financing support, startup costs and mandatory fit-out expenses. Depending on the FTC’s findings, corrective measures and broader discussion of franchise operating practices may follow. Source: yna.co.kr