"Is it hard to understand that support comes only now after a closure rate of 70%?"

Baek Jong-won, the CEO of Theborn Korea, has announced his intention to focus on his main business activities after stepping back from all broadcasting engagements. In response, the franchise owners of Yeon Don Volcatts, who were at the center of last year's sales inflation controversy, are showing perplexed reactions.

Some franchise owners stated, "It is hard to understand that the head office, which took no action until the closure rate surpassed 70%, is now talking about 'mutual growth.'"

On the 7th, Jeong Yun-ki, co-president of the Yeon Don Volcatts Franchise Owners Association, appeared on MBC Radio's 'Kim Jong-bae's Focus' and shared, "I opened a Yeon Don Volcatts store in July 2022 and have been operating it ever since. Baek's apology feels frustrating and absurd."

"Sales have noticeably dropped… 'Bbac Ham controversy' caused a decline in customers”

Jeong said that the successive controversies surrounding Baek directly led to a drop in sales. He remarked, "Since the 'Bbac Ham incident' in January this year, sales have significantly decreased," adding, "It's hard to definitively assert a direct causal relationship, but it's clear that it has had some impact."

Regarding Baek's announcement of a 5 billion won support plan for joint growth with franchisees, skepticism arose. Jeong noted, "I haven't received any official documents regarding this yet, so I don't know the specifics," but added, "I understand that there are about 3,000 Theborn Korea franchises, which means around 1.5 to 1.6 million won per store. This amount is not enough to provide substantial support."

He continued, "Stores with higher sales will receive greater benefits, but small stores that are actually struggling to survive will struggle to receive practical help. It’s hard to shake off the impression that the scale of the support plan is small."

"Thanks to promotions, we’ve managed to hold on, but it’s uncertain if we can continue."

Jeong acknowledged that Baek had previously raised the brand value through his promotional skills but expressed concern about whether it would be possible to conduct a similar 'promotion drive' in the future.

He mentioned, "The brand Yeon Don Volcatts has barely been maintained due to Baek’s image and exposure, but in the current situation, I question whether the CEO can again step forward to promote the brand."

Meanwhile, last June, eight franchise owners of Yeon Don Volcatts reported Theborn Korea to the Fair Trade Commission for alleged violations of franchise business law and fair trade law.

They claimed, "Theborn Korea presented monthly sales of 30 million won and a profit margin of 20-25%, but the actual sales were only half at 15 million won, with profit margins of just 7-8%."

In response, Theborn Korea rebutted, stating, "There has been no guarantee of specific sales amounts or profit margins." Currently, the issue is under investigation by the Fair Trade Commission.

Image source: youtube 'Baek Jong-won paik jong won', instagram 'yeondon2014'