Baek Jongwon: "The Win-Win Committee Is a Matter of Survival for Us"
Delivery Sales Royalties to Be Cut by About 50% Starting in August
Franchise Owners to Benefit from Monthly Fixed Royalty Payments
External Experts Appointed as Public Watchdogs for Fair Practices
Theborn Korea announced on July 1 that it has launched the "Theborn Korea Win-Win Committee," an official consultative body that institutionalizes a practical win-win structure between headquarters and franchisees.
At the launch ceremony held the previous day, the committee shared its composition and operational direction, and discussed policies that reflect the difficulties faced by franchise owners.
Theborn Korea had announced its intention to form the Win-Win Committee in February, following a series of controversies surrounding the company and CEO Baek Jongwon.
The launch ceremony of the "Theborn Korea Win-Win Committee" held in the conference room of Theborn Korea Annex Startup Briefing Hall located in Seocho-gu, Seoul on June 30. Theborn Korea
The most significant outcome of the previous day's discussions was the agreement to reduce delivery sales royalties by approximately 50% starting in August. This measure is intended to alleviate the cost burden on franchise owners resulting from delivery sales.
The committee also approved a proposal to convert the annual lump-sum payment of fixed royalties to a monthly installment system. This change will also take effect next month. Theborn Korea expects this will allow franchise owners to spread out their fixed costs, thereby improving cash flow stability and flexibility.
In addition to the fixed royalty discount, the meeting also addressed the production of promotional content related to the Livelihood Recovery Support Fund, the expansion of external social contribution activities linked to ESG (environmental, social responsibility, and corporate governance), the implementation of inter-brand linked discount events, the development of a unified Theborn Korea app, and the improvement of commission structures through cooperation with delivery platforms.
The Win-Win Committee is composed of headquarters executives, representatives of each brand’s franchisees, and external experts. It will accept and implement practical proposals through regular meetings and quarterly reviews. Ahn Jingul, Director of the People’s Livelihood Economy Research Institute (former Citizens’ Coalition for Economic Justice Citizens’ Committee Chair), and Park Kyungjun, attorney (former Korea Fair Trade Mediation Committee mediator and current Policy Committee Chair at the Citizens’ Coalition for Economic Justice), will serve as public watchdogs to ensure balanced franchise business practices and consumer rights protection. Other experts participating in the committee include Yoo Hyosang, Director of the Unicorn Management and Economics Research Institute (former Dean of CHA University Graduate School of Business), and Koo Jungmo, attorney at Law Firm Deoksu.
Baek Jongwon, CEO of Theborn Korea, stated, "Thanks to our franchise owners, we were able to set the direction for the Win-Win Committee, and it made me reflect on why I started the franchise business in the first place." He added, "This committee is a matter of life and death for us. In the future, whenever difficulties arise, all brands will come together to find solutions, and we will operate fairly with external experts, working to build a company that everyone admires."
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