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| Genesis BBQ Chairman Yoon Hong-geun, second from left, speaks during a meeting with franchisees in Gunsan, North Jeolla Province, last week. / Courtesy of Genesis BBQ |
By Park Jae-hyuk
Does Genesis BBQ covet the severance pay of dismissed industrial workers in Gunsan?
Such a question has been raised, since the nation's third-largest fried chicken franchise announced earlier this week it will give a certain amount of money to those who open BBQ stores in North Jeolla Province, where people suffer financial difficulties amid shutdowns of GM Korea's factory and Hyundai Heavy Industries' shipyard.
Starting Friday, the company will give 31.6 million won ($29,500) to each of 50 new franchisees in the southwestern province.
The sum includes the total amount of franchise fees and training expenses, as well as 40 percent of costs for interior decoration, according to the company.
"Because each store needs five people, 50 stores will create 250 new jobs," Genesis BBQ Chairman Yoon Hong-geun said. "If each employee provides for three family members, the measure will stabilize 1,000 people's living."
Regarding it as a fraudulent marketing campaign with a hidden intention, however, consumers expressed unfavorable opinions about Genesis BBQ's recent measure.
They pointed out the new franchisees, most of whom will be dismissed factory workers, have no choice but to spend their severance pay on the extra costs.
Data compiled by the Fair Trade Commission (FTC) showed a franchisee needs at least 74 million won to open a 19.6-square-meter store.
Industry officials also said there is no space to open 50 additional stores in North Jeolla Province, because the number of fried chicken stores in the province has already reached the saturation point.
According to Genesis BBQ, the number of BBQ stores increased from 35 to 37 between the 2015-2016 period, and the number of BBQ stores in 2014 was 27.
Genesis BBQ has also been accused of abusing its franchisees.
The company was criticized last year for allegations of shifting its advertising costs to franchisees.
The firm was also fined 300 million won for allegedly having forced 75 franchisees to shoulder 530 million won for their outlets' interior improvements from March 2015 to May last year, according to the FTC this week.
The related regulations stipulate franchisers should share part of the costs when they demand franchisees renovate their outlets' interiors.
Genesis BBQ headquarters, however, forced franchisees to write requests for interior improvements, so the financial burden fell on them.
Some even suspect Genesis BBQ announced the supportive measure to distract from the bad news, although the company denied it.
Against this backdrop, some consumers began boycotting Genesis BBQ.
Since launching its franchise business in 1995, Genesis BBQ has grown into a company having 1,490 stores as of 2016.
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