Mom's Touch Officially Launches Internal Autonomous Dispute Resolution Organization

On the afternoon of the 21st, at East Central Tower in Cheonho-dong, Gangdong-gu, the Mom's Touch 'Internal Voluntary Dispute Resolution Organization Inauguration Ceremony' took place. Photo by Mom's Touch

[Asia Economy Reporter Moon Hyewon] Mom's Touch announced on the 22nd that it will launch an internal autonomous dispute resolution committee (hereinafter referred to as the Dispute Resolution Committee) involving external experts to resolve disputes and conflicts with franchisees and to promote win-win cooperation and mutual growth, and will begin full-scale activities.

Mom's Touch held the inauguration ceremony for the Dispute Resolution Committee yesterday afternoon at the headquarters meeting room in Gangdong-gu, Seoul.

The Dispute Resolution Committee consists of a total of 17 members in the operating committee: one external expert chairman guaranteed for prompt mediation ability, credibility, and independence, eight franchisee representatives, and eight headquarters representatives.

The inaugural chairman appointed was Professor Lee Seungchang of the Department of Business Administration at Korea Aerospace University, a domestic franchise dispute resolution expert. Professor Lee has served as the chairman of the Global Franchise Council and the Korean Franchise Association, and is known as an expert with extensive experience in resolving numerous franchise disputes, as well as abundant knowledge of related laws and expertise.

Franchisee representatives were selected from store owners who passed criteria such as having operated a franchise store for more than three years and being recommended by franchisee organizations or groups of ten or more franchisees. Headquarters representatives were appointed at the executive level or higher with decision-making authority for dispute resolution.

The Dispute Resolution Committee is an organization established to amicably resolve various disputes that may arise between the headquarters and franchisees, or among franchisees themselves, through official procedures. Autonomous dispute resolution proceeds by inducing agreement when complaints or disputes from franchisees are received, and for unresolved matters, it conducts deliberations and proposes mediation recommendations. The committee will hold regular meetings once every six months and convene extraordinary meetings as needed in urgent cases.

Professor Lee said, “Mom's Touch is a purely domestic franchise brand and asset that has grown competing with many global brands and represents Korea.” He added, “I will do my best to help balance and integrate disputes and conflicts between the headquarters and franchisees, even if only a little.”