CU, Early Payment of 64 Billion KRW in Store Setup Funds to Franchisees

[Asia Economy Reporter Seungjin Lee] BGF Retail, which operates CU, announced on the 21st that it will advance the payment of approximately 64 billion KRW in settlement funds for franchise stores this month ahead of the Lunar New Year holiday.

CU plans to make the payment on the 22nd of this month, about three weeks earlier than usual, to help franchise owners manage their funds smoothly during the holiday period.

To this end, BGF Retail has been accepting applications from franchise stores requesting early settlement payments since early January and will finalize the eligible stores and the total amount before executing the payments.

Early payment of transaction funds to small and medium-sized partner companies will not be advanced separately this time, as the regular settlement date falls just before the Lunar New Year holiday.

BGF Retail has been leading efforts to enhance the competitiveness of franchise stores and small and medium-sized partners by paying settlement funds more quickly and transparently through flexible payment standards ahead of holidays every year.

Since 2014, CU has been the first in the industry to allow franchisees to choose whether to operate 24 hours at the time of signing the franchise contract and increased the profit-sharing ratio for franchise owners from the industry average of around 60% to up to 80%, improving the rights and operating conditions of franchisees.

Last year, CU actively reflected the revised standard franchise contract by the Fair Trade Commission and became the first in the industry to implement a voluntary holiday closure system for Lunar New Year holidays. It also established standards for penalty reductions, condolence leave, and extended the initial stabilization period.

Hwang Hwan-jo, Head of Management Planning at BGF Retail, said, “We are continuously researching and developing various franchise support and benefit programs to improve store competitiveness and operational convenience. By prioritizing franchise profitability and faithfully fulfilling the role of the franchisor, we will lead mutual growth and coexistence with our franchise stores.”