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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] The Korea Fair Trade Commission (KFTC) is conducting an on-site investigation at the headquarters of The Born Korea until the 25th. This investigation is aimed at determining whether The Born Korea violated franchise business laws by exaggerating profitability to franchisees of Yeondon Volcarts.
According to industry sources on the 24th, the KFTC carried out an investigation this morning at The Born Korea's headquarters in Gangnam, Seoul, regarding allegations of false and exaggerated advertising.
Earlier, the National Franchise Owners Council and the franchisees of Yeondon Volcarts accused the headquarters of recruiting franchisees through misleading advertisements and ignoring declining sales. Consequently, the franchisees reported The Born Korea to the KFTC for alleged violations of the franchise business law and fair trade law on June 24.
Following the reception of the related report in July, the KFTC confirmed the necessity of an on-site investigation and sent investigators to collect data. The investigation is scheduled to continue for two days until the 25th.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
