An offical briefs unfair enterprise practices of Papa John’s Korea on the Authorities Advanced Sejong, Oct. 24. Yonhap
The antitrust regulator stated Thursday it has determined to superb Papa John’s Korea 1.48 billion received ($1.07 million) for unfair enterprise practices towards franchise outlets.
The pizza restaurant chain had allegedly designated 15 sorts of cleansing merchandise, together with hand soaps, as must-buy objects from the headquarters and compelled franchise store house owners to purchase and use the designated merchandise from July 2015 till not too long ago, in accordance with the Honest Commerce Fee (FTC).
Below its operation pointers, those that violate the rule have been topic to enterprise suspension, which the FTC sees as a violation of the franchise enterprise act.
Papa John’s had additionally required the renovation of 25 franchise outlets from 2015 by 2022 and did not pay due prices to buy house owners.
Along with the penalty, the FTC ordered the pizza chain to pay the prices and take different corrective measures.
“These practices infringed upon the free decision-making and financial pursuits of its franchise store house owners. We’ll proceed to completely monitor unfair practices of the franchise headquarters,” the FTC stated in a launch. (Yonhap)
