Alphabiz - Baskin Robbins & Dunkin Operator BR Korea Faces Antitrust Probe Over Franchise Violations

Photo courtesy of Yonhap News

[Alpha Biz= Kim Jisun] SEOUL, November 19 — BR Korea, the operator of Baskin Robbins and Dunkin in Korea, is under investigation by the Fair Trade Commission (FTC) for alleged violations of the Franchise Business Act.


According to industry sources, the FTC’s Daejeon office recently dispatched investigators to BR Korea’s headquarters to begin an on-site probe. The company is suspected of providing ice cream support benefits only to franchisees who agreed to a telecom discount promotion, while disadvantaging those who opposed it.


Under Korean law, franchisors must obtain consent from 70% of franchisees before conducting promotional activities that require franchisees to share costs.


The FTC is also examining whether Dunkin pressured franchisees to renovate stores by supplying popular donuts only to shops that completed new interior updates.


In addition, authorities are investigating potential violations related to the SPC membership program Happy Point, after claims that franchisees were required to cover half of the reward points without proper consent when the system was introduced.

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)