Published : 2013-10-21 19:33
Updated : 2013-10-21 19:33
The Fair Trade Commission said Monday that it has ordered two coffee chain operators to correct misleading information given to their nationwide franchise partners.
Coffine Gurunaru and Herry’s were found to have provided incorrect information to their partners regarding sales forecasts as a means to expand the number of outlets, the FTC said.
They provided “unrealistic and overblown” sales projections when their partners open the stores within a certain period of time.
For instance, Coffine Gurunaru provided information stating that their partners can achieve sales of 60 million won ($56,500) per month in the first six months after opening and 80 million won in the first year.
However, the antitrust regulator said that the true sales figure was 35 million per month on average in two years of operation.