Papa John's Korea faces sanctions in South Korea for unfair franchise practices

( October 24, 2024, 03:00 GMT | Official Statement) -- MLex Summary: Papa John's Korea has been hit with a fine of 1.5 billion won (about $1.1 million) by the South Korean competition watchdog for forcing franchisees to exclusively purchase cleaning supplies and failing to pay its legally required share of store renovation costs. According to the Korea Fair Trade Commission, the violations included mandating franchisees to buy 15 types of cleaning supplies solely from headquarters and failing to pay its legally required 20 percent share of renovation costs to 25 franchise locations during renovations conducted between 2015 and 2022. The regulator's decision includes corrective orders and mandates the company to pay the renovation costs it avoided paying. The statement, in Korean, is attached....

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Papa John's Korea faces sanctions in South Korea for unfair franchise practices

Prepare for tomorrow’s regulatory change, today

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