I'm forced to buy detergent.S. Korean Papa Jones Penalty W1.5 Billion

Korean Papa John's to designate tax 'essential items' for 10 years

Forcing shop owners to purchase 15 types of detergent...Margin Rate Average 16%

" Buy Individually "If caught twice, suspension of business"

[Anchor]
How does the kitchen detergent used in pizza shops relate to the taste and quality of pizza?

The Korea Papa Jones was sanctioned by the FTC for making money by selecting various detergents as essential items that store owners should receive only from the headquarters.

It is the largest penalty ever for essential items.

Lee Seung-eun reports.

[Reporter]
For the past 10 years, Papa John's Korea has designated the tax system as a mandatory item in the contract for franchisees to buy and use it only at the headquarters.

From kitchen detergent to window cleaning detergent, there are 15 types, and the margin rate was an average of 16%.

We have also created guidelines to deduct points that serve as the basis for business suspension if store owners are caught buying and using individually, and to suspend business if they are caught repeatedly.

In addition, 25 franchisees, including stores 10 years old, were asked to remodel their stores as a condition for renewal of their contracts, and the headquarters had to pay at least 20% of the cost, but they did not pay about 200 million won.

The Fair Trade Commission has decided to impose a fine of 1.482 billion won on Papa John's Korea along with an order to pay remodeling costs.


This is the second largest penalty ever for violating the Affiliate Business Act.

Among them, the penalty of 1.04 billion won imposed on compulsory essential items is the largest amount related to essential items.

[Ryu Soo-jung, head of the Fair Trade Commission's franchise transaction investigation team: Considering that cleaning products that are not directly related to the taste and quality of Papa John's pizza and have similar effects to Papa John's designated products are available on the market, it is an act that excessively restricts franchisees' free choice.]

Most of the franchise headquarters in Korea make money from the sales margin of essential items, and they often make irrational moves in the process.

Sanctions are expected to continue in the future as the Fair Trade Commission is looking into the legal system after recently overhauling the legal system related to essential items.

From December 5th, you must consult with the store owner when changing the terms of transactions related to essential items unfavorably to the franchisee.

I'm YTN's Lee Seung Eun.

Hong Seong-no, a photographer for