The Korea Fair Trade Commission said on the 27th it ordered corrective measures against Saladit's franchisor for forcing franchisees to buy eco-friendly spoons and forks from a specific company. Saladit is a salad specialty franchise corporations with 333 franchise locations nationwide. Last year's annual sales were about 35.5 billion won.
According to the Korea Fair Trade Commission (FTC), Saladit wrote in its franchise agreement that franchisees must purchase spoons and forks from the franchisor or from a business designated by the franchisor. It also included a clause allowing the franchisor to suspend the supply of materials and supplies, terminate the franchise agreement, or seek damages if a franchisee violated the requirement.
The Korea Fair Trade Commission (FTC) determined that these actions by Saladit's franchisor violated Article 12, Paragraph 1, Item 2 of the Franchise Business Act. The provision prohibits a franchisor from unfairly binding or restricting a franchisee's price of goods or services, transaction counterparty, transaction region, and the like, thereby impeding fair transactions.
The Korea Fair Trade Commission (FTC) does not sanction a franchisor for requiring purchases from specific suppliers when necessary to ensure a unified image of franchisees or to maintain the taste and quality of main products. However, it concluded the Saladit case did not fall under those circumstances. An FTC official said, "It is difficult to see any special function or property in spoons or forks, and there are many alternative products of similar quality in the market."