A Bbakdabang franchise in Cheongju, South Korea, has decided to cease operations following a controversial lawsuit against a part-time employee for alleged embezzlement.
On June 30, DaeBon Korea, the parent company, announced it had notified the franchise of the termination of their franchise agreement, instructing them to close by July 13.
DaeBon Korea determined that the actions of the franchise had severely damaged the brand's image and credibility, adversely affecting the operations of other franchise owners.
The controversy began when the franchise owner filed a lawsuit against part-time employee A, accusing them of embezzling three beverages, valued at approximately 12,800 won, during their employment from May to October of last year.
The franchise owner also claimed that A had taken about 350,000 won worth of beverages without permission during their employment and demanded a settlement of 5.5 million won. The subsequent agreement drew criticism for being excessive.
As the situation escalated, DaeBon Korea launched an investigation shortly after becoming aware of the issue in March. However, due to current franchise laws, the company could not immediately terminate the franchise agreement and opted for a temporary suspension of operations while proceeding with further actions.
The Ministry of Employment and Labor conducted a two-month inspection of 33 franchise cafes and restaurants in the Cheongju area, including the implicated store. The inspection revealed that the franchise owner had violated labor laws, including the illegal drafting of employment contracts, leading to criminal charges.
In response to this incident, DaeBon Korea plans to strengthen its labor management system across its franchises. The company intends to expand labor inspections nationwide and establish a labor consultation center staffed by professional labor attorneys to assist franchise owners and employees in resolving labor-related issues proactively.
A DaeBon Korea representative stated, "We will establish a management system that protects the rights of both franchise owners and employees to prevent similar incidents from recurring."
A Bbakdabang representative added, "We are enhancing labor inspections at each store and promoting support from a labor consultation center staffed by professionals. We aim to create a labor management system that safeguards the rights of both franchise owners and employees to prevent similar cases from happening again."
* This article has been translated by AI.
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