Seoul City Provides Free Management Consulting to Small and Medium Franchise Businesses

Recruiting Over 20 Participating Companies

The Seoul Metropolitan Government will provide up to four months of free management consulting to franchise headquarters and franchise stores that realize win-win cooperation rather than an unfair relationship commonly referred to as the ‘Gap (甲)-Eul (乙)’ relationship. Professional consultants will visit the headquarters up to 35 times to provide intensive support, aiming to enhance management capabilities and simultaneously spread a culture of fair trade in the franchise market.

On the 8th, Seoul announced that it will recruit about 20 small and medium-sized franchise headquarters to participate in the 'Win-Win Cooperation Franchise Consulting Support Project' by the 22nd.

The city stated that although the franchise industry has achieved quantitative growth, unfair trade practices between headquarters and franchisees still persist. The purpose of this project is to actively support the revitalization of businesses by finding small and medium-sized franchise headquarters that are growing together through win-win cooperation between headquarters and franchisees.

The support targets are ▲ franchise headquarters that are already supporting franchisees' management and business activities, ▲‘Good Franchise’ headquarters certified by the Fair Trade Mediation Agency, and ▲small and medium-sized enterprises that have plans to realize win-win cooperation for the establishment and operation of franchise headquarters and can present specific plans.

If selected as participants, professional consultants composed of franchise transaction specialists, management advisors, accountants, and tax accountants will visit the franchise headquarters and stores directly for 2 to 4 months (17 to 35 visits per company) to provide free consulting tailored to the company’s needs and situation.

Eligibility requires that the applying company has its main office in Seoul and is a small or medium-sized franchise headquarters realizing win-win cooperation or a small or medium-sized enterprise with the purpose of establishing and operating a franchise headquarters. However, unsuitable industries such as entertainment and leisure businesses, alcohol brokerage and wholesale, financial institution debt defaulters, and companies with national or local tax arrears are excluded.

Choi Won-gyu, Director of Fair Economy at Seoul City, stated, “We will provide various incentives such as close consulting that enhances business performance and growth potential for companies leading the establishment of a proper franchise culture, promotion of corporate performance, continuous monitoring and support, and participation in expert education, so that more headquarters and franchise stores participate in creating a culture of win-win cooperation.”