Baskin-Robbins Franchise Owners Also File Lawsuit Over 'Difference in Franchise Fees'

Litigation Amount Reaches 417 Million KRW...
1 Million KRW Per Franchisee
Following Lotte Super, Lotte Fresh, and BHC, Lawsuits Continue

About 400 franchisees of Baskin-Robbins, an ice cream franchise brand operated by SPC Group, have filed a lawsuit against the headquarters demanding the return of 'difference franchise fees.'

Baskin-Robbins 'Seocho Woosung Branch' store exterior. Provided by SPC Group

According to the related industry on the 14th, 417 Baskin-Robbins franchisees filed a lawsuit against BR Korea, which operates Baskin-Robbins, at the Seoul Central District Court the day before, claiming the return of unjust enrichment. The amount in dispute is initially 417 million KRW. It is reported that the franchisees calculated the difference franchise fees paid without agreement at a minimum of 1 million KRW each and summed the total.

The difference franchise fee refers to the money the franchisor receives as margin above the appropriate wholesale price when supplying raw and subsidiary materials. According to the Franchise Business Act, details regarding difference franchise fees must be stated in the disclosure document.

BR Korea is reportedly yet to receive the complaint. An SPC official said, "We have not received the complaint delivery, so we have not confirmed the details," adding, "There is nothing to comment on at this stage."

In the franchise industry, lawsuits related to difference franchise fees have been filed continuously recently. Last month, franchisees of Lotte Super and Lotte Fresh filed lawsuits demanding the return of difference franchise fees. BHC Chicken franchisees also filed a lawsuit for the return of difference franchise fees last month, withdrew it, and then refiled the complaint the day before.