Myeongryunjinsagalbi Supports One Month Rent for 522 Franchise Stores Nationwide to Overcome COVID-19...

The franchise headquarters of Myeongryun Jinsagalbi, Myeongryundang Co., Ltd., recently announced that it has supported the full monthly rent totaling 2.3 billion KRW for all 522 franchise stores nationwide to overcome the 'COVID-19 crisis.'

The highest rent support provided to a single franchise store reached 16.9 million KRW, and stores with relatively lower rent received additional payments to ensure a minimum of 3 million KRW in rent support. Due to the nature of the franchise business, the headquarters' revenue is directly linked to that of the franchise stores, so the decision to cover the full monthly rent for all franchise stores amid significant losses at headquarters is considered a challenging one.

This support from Myeongryun Jinsagalbi during the 'COVID-19 crisis' is evaluated as a result of the win-win agreement between the headquarters and the franchisee council. Myeongryun Jinsagalbi signed a cooperative win-win agreement with the franchisee council in January. The headquarters has been continuously monitoring the extent of damage to franchise stores and industry trends caused by COVID-19, while the franchisee council actively communicated the damage and hardships experienced by franchise stores on the ground to the headquarters. Consequently, with the intention of sharing the pain of franchise stores, the headquarters made the significant decision to support the rent for all franchise stores.

A representative of Myeongryun Jinsagalbi headquarters stated, “The COVID-19 crisis has severely impacted self-employed businesses in South Korea, especially the food service industry. It is not easy to overcome this situation, which is similar to a natural disaster,” and added, “To provide some comfort to franchisees, rent will be paid fairly not only to tenant franchisees but also to franchisee landlords.” They also pledged to spare no effort in supporting franchise stores until sales at all locations return to normal.

In addition to this rent support, Myeongryun Jinsagalbi headquarters said that its staff will conduct free disinfection of tables, chairs, door handles, and other interior surfaces at stores nationwide to ensure customers can visit safely, and will also assist with cleaning to maintain store hygiene.

According to Myeongryun Jinsagalbi headquarters, despite the COVID-19 crisis, the brand has relatively weathered the damage better than competitors thanks to various marketing and advertising efforts that have built a strong brand image. Corporate statistics actually prove that companies that aggressively advertise during economic downturns benefit from improved brand image and increased sales.

Franchisees of Myeongryun Jinsagalbi expressed gratitude and trust toward the headquarters for making such a difficult decision, calling it encouraging news above all else, and showed their determination to overcome this crisis together.

This support from Myeongryun Jinsagalbi for its franchise stores is positively evaluated as it demonstrates one way to foster mutual trust and coexistence between franchisees and the franchise headquarters amid the difficulties caused by COVID-19.