The Seoul Metropolitan Government fosters a win-win model for franchise headquarters and store owners in Seoul-style social franchise
- Implementation of the Seoul Social Franchise Project to improve the unfair practices of franchises
- Franchise → Cooperative, Cooperative → Franchise, Social Value Realization Franchise
- Provide customized consulting such as developing business models, strengthening marketing, logistics, and management capabilities.
- Recruit participating companies and consulting agencies up to 4.7 (Wednesday) and apply if the main office is in Seoul.
# The Seoul Digital Printing Association, located in Seongsu-dong, was selected as the "Seoul-type Social Franchise" last year and registered as a franchise business after receiving know-how in management consulting and franchise business for six months. This year, Youth Forest Cooperative, a border youth cooperative, plans to open a franchise store, and is conducting incubation training for border youth from September 2020 to March this year. It is said that young people with boundaries who have difficulty in providing face-to-face services due to digital printing-based businesses are very eager to start their own businesses.
# Mr. Pizza, who founded the first purchasing cooperative in the franchise industry, has been selected as 'Seoul-type social franchise' since '18 and has received marketing support such as BI, brochure, and video. The U.S. also suffered from the disease of the headquarters' power abuse and solved the problem through a system called purchasing cooperatives. Burger King, KFC, Pizza Hut and Dunkin Donuts, the world's familiar fast food franchise brands, are successful in co-prosperity by introducing a purchasing cooperative system, and Burger King is left to the union.
□ The Seoul Metropolitan Government will resolve unfair practices between franchise headquarters and franchises, so-called "gap" and "eul" relationships, and strengthen the self-sustaining power of small merchants who are suffering from large franchises. It helps increase sales by turning existing "franchise companies" into "cooperative franchises" where both headquarters and store owners can participate in management as union members or by helping "cooperative" or "social enter the franchise market. Franchises that realize social values such as jobs, the environment, and protection of the socially disadvantaged will also implement support measures tailored to the stage of growth.
<Partner Headquarters - Establishment of Fair Trade Culture during the Store Week <Seoul-type Social Franchise Project Promotion>
□ The Seoul Metropolitan Government will select about 12 "Seoul-type social franchises" to take the lead in establishing a fair trade culture between the franchise headquarters and merchants. Social franchise's goal is to provide all-out support from developing business models to strengthening marketing and management capabilities, distributing business results fairly by franchise headquarters and store owners, and growing and co-prosperity together.
○ The "Seoul-type Social Franchise" project, which the city started for the first time in the country in April 2018, is expanding its support to nine in 2019 and 12 in 2020.
□ As of the end of 2019, a total of 47,000 franchises (based on registration of information disclosure) registered in the Seoul Metropolitan Government and about 200,000 workers are on the rise despite the Korona19. However, as disputes between franchise headquarters and store owners continue to increase as much as the quantitative increase of franchisees, it is urgent to prepare a business model with social values such as the "Seoul-type social franchise," the city added.
○ In fact, 109 cases of counseling were filed with the Seoul Metropolitan Government's Fair Damage Counseling Center last year, 97 cases of unfair trade practices, including 30 cases of information disclosure, 20 false advertisements, 33 cases of abuse of trading status.
□ "Seoul-type Social Franchise" consists of four main types of business, including franchise/social enterprise cooperative establishment and operation 협 cooperative/social enterprise franchise entry 사회적 social values (job, eco-friendly, social weak protection, etc.)
<Customized consulting services such as business model development, marketing, logistics, and management capabilities>
□ If selected as "Social Franchise", professional consultants for each cooperative and franchise (15 to 30 times per company) will systematically help the company grow through close consulting.
□ Consulting provides basic management strategies such as market analysis and business strategy establishment, business model development necessary for franchise and cooperative establishment, support in marketing and logistics sectors such as product analysis and distribution, and financial and organizational management.
□ All consulting was focused on allowing experts to successfully operate the company after diagnosing its performance and goals in advance, focusing on ways to strengthen its mid- to long-term corporate capabilities and securing self-sustaining capabilities.
<Recruitment of participating companies and consulting agencies by 4.7.(Wed.) If the main office is in Seoul, you can apply>
□ Applications for participation in the "Seoul-type Social Franchise" can be made if it is a franchise headquarters (a consultative body of franchise owners) or cooperative association with a main office in Seoul. However, nonconforming industries such as entertainment, entertainment, liquor brokerage, and wholesale businesses cannot receive support, and financial institution default companies, national tax and local tax delinquents cannot apply.
□ In addition to participating companies, social franchise consulting agencies will be recruited. Companies with a pool of experts, such as franchise traders, management instructors, accountants, tax accountants, lawyers, and distribution managers, who have knowledge, experience, and know-how related to fostering and supporting social franchises, can apply.
□ The recruitment period for participating companies and consulting agencies is until April 7 (Wednesday), and applications for qualifications, fields, and necessary documents can be applied by e-mail after confirming the notice on the Seoul Metropolitan Government website (www.seoul.go.kr).
※ Email address: rooster72@seoul.go.kr / 2133-5151
□ In addition to consulting, subsidies for brand development, IT environment construction, improvement, marketing, and education can be provided up to 12 million won per company. Among cooperative franchises, companies that can have self-sustaining power in the future are selected with clear business operational problem awareness, achievement goals, and detailed implementation plans.
□ Park Joo-sun, Seoul's Fair Economy Officer, said, "Many citizens choose to start a business with less risk and small capital, but many small business owners are suffering from the power abuse of the franchise headquarters."
