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KFTC sanctions Genesis BBQ over franchisee profitability claims

( March 29, 2016, 04:48 GMT | Official Statement) -- MLex Summary: The Korea Fair Trade Commission has decided to impose corrective orders on Genesis BBQ, which operates fried chicken franchise “BBQ,” for making claims that it would guarantee profits of at least 5 percent of franchisees' investment. When the company was recruiting franchisees for its premium restaurant brand, it said at an investment briefing that BBQ would secure returns of 5 percent on investment. It also put out newspaper advertisements from January to April 2012, saying that opening a store would guarantee a return of 5 percent on investment annually. But that promise was made only to investors that opened new stores. Operators of existing stores that switched to the BBQ franchise were not offered the same guarantee.The regulator's statement, in Korean, is attached....

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