April 27, 2024
Retail & Consumer
Pizza Hut fined W526m for charging extra from franchisees
[THE INVESTOR] South Korea’s antitrust agency has fined Pizza Hut 526 million won (US$435,863) for collecting up to 6.8 billion won from its franchisees as administration fees.
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According to the Fair Trade Commission, since 2003, the pizza franchise has unfairly charged extra money that was not included in the contract, in addition to royalty and advertisement expenses, amounting to 5-6 percent of the revenue respectively.
Pizza Hut levied the extra fees without any prior discussions or consent, and notified the franchisees through a billing statement.
By Hwang You-mee (glamazon@heraldcorp.com)
