[THE INVESTOR] Bongousse Rice Burger franchisees have raised objections to its planned acquisition by Nene Chicken, according to news reports on Oct. 4.
“We are expanding our presence with our know-how in operating chicken franchise stores and through this acquisition we will create synergies to become a more stable restaurant operator with high quality service,” a Nene Chicken official was quoted as saying a day before.
However, Bongousse outlets are upset with the lack of transparency and have filed a review petition with the Fair Trade Commission. They emphasized that former Bongousse CEO Oh Seh-rin sold the company without disclosing how he plans to clear the 4 billion won (US$3.54 million) debt he owes them.
Oh had unilaterally changed the credit card readers in all burger stores and promised the franchisees that he would compensate them for the penalty fees due to breach of contract with the former credit card reader provider.
According to sources, Nene Chicken plans to negotiate with the disgruntled franchisees after knowing that they have approached the antitrust agency.
Oh started his business as a street food vendor in 2009 and opened the first Bongousse store in March 2012. The company currently operates over 900 outlets here.
By Song Seung-hyun (email@example.com)