Baek Jong-won, The Born Korea, some franchise brands effectively in the process of termination

Some franchise brands under The Born Korea, led by Baek Jong-won, have effectively entered the termination phase.

According to a report by EBN on the 22nd, among the 25 franchise brands under The Born Korea, four brands, including 'Gosok Udon', 'Quick Ban', 'Baek Cheolpan 0410', and 'Nakwon Gopchang', have currently been confirmed to have 0 franchises nationwide.

Among these, 'Nakwon Gopchang' is only operating one direct store, and while the information disclosure has been registered, there has been no expansion of the franchise business.

Brands with no or very few stores remaining are interpreted as being in an effective state of business withdrawal.

In addition, some brands such as 'Go to Work' and 'Seongseong Restaurant' are in a situation where their presence is barely maintained. The number of stores for these brands has decreased to less than one nationwide, and there are no direct stores, raising questions about the sustainability of the brands.

The operational crisis of The Born Korea and the trend of decreasing franchises

Direct stores are essential infrastructure for operating the franchise system, necessary for brand standardization, training, new product testing, and support for education venues. However, The Born Korea is currently witnessing signs of franchisee departure and brand switching due to recently emerged legal risks.

It is understood that The Born Korea is not considering complete withdrawal from these brands, and is analyzed to be in a state close to actual operational suspension.

The Born Korea has a total of 25 brands, but as of last year, the number of stores for more than half, 16 brands, has decreased.

Excluding major brands like 'Baek Dabang', 'Hong Kong Banjeom', and 'Yeokjeon Udon', the overall growth trend is slowing down.

An industry official shared with EBN, “For some time, The Born Korea has been evaluated as having too many owned brands with vastly different business characteristics,” adding, “Nevertheless, CEO Baek Jong-won seemed to maintain the franchise business well, leveraging his star power and recognition, but recently owner risks seem to be returning the situation as poison.”

This official remarked, “In the food business, trust from consumers as well as franchisees is life. Since several franchise stores have already suffered direct damage from this situation, and the position of related collaborating companies is becoming increasingly precarious, it currently appears that the franchised brands that have not yet grown have a very low chance of revival."

Image source: Baek Jong-won, CEO of The Born Korea / News1, News1, capture from The Born Korea website