As of 2023, the annual average sales of registered franchises in Seoul was 394 million won, marking three consecutive years of growth. Additionally, it was found that four out of ten franchise brands reported annual sales exceeding 300 million won.
On the 1st, Seoul announced the '2024 Seoul Franchise Registration Status' containing this information.
According to the announcement from Seoul on that day, the annual average sales of franchises in the city have increased for three consecutive years, starting from 2021 to 2023. In 2021, sales were 342 million won, a 2.7% increase compared to the previous year, followed by 372 million won in 2022, an 8.8% increase. Sales increased by 6% in 2023 as well.
In the earlier case of 2020, the average sales were 332 million won, a decline of 4% from the previous year.
As of 2023, the number of franchise brands with annual average sales of over 300 million won was counted at 839, an increase of 155 compared to the previous year. This represents 42.1% of all brands.
Following that, the number of brands with average annual sales of 100 to 200 million won (411, 20.6%), under 100 million won (387, 19.4%), and 200 to 300 million won (355, 17.8%) followed in order.
The expense to start a franchise is surveyed to be an average of 113 million won. The startup cost for service industries was the highest at an average of 170.8 million won. Retail and wholesale was 143.2 million won, and the food service industry was 94.8 million won.
The number of registered franchise brands in Seoul declined from 4,472 in 2023 to 4,403 in 2024, a decrease of 1.5%. During the same period, the number of head offices dropped from 2,805 to 2,754, a reduction of 1.8%. In contrast, the number of franchises operated by registered brands in Seoul reached 205,164 as of the end of last year, marking an increase of 4.9% compared to the previous year.
In terms of business types, the food service sector held the largest share, accounting for 70.9% of all head offices, 76.1% of brands, and 42.4% of franchise numbers. The number of food service brands was 3,349, a 0.7% decrease compared to the previous year, while the number of franchises increased to 86,931, a rise of 6.1%.
In the case of the service industry, the number of brands decreased by 3.4% to 864, while the number of franchises increased by 4.8% to 57,291. The retail and wholesale sector also saw a 7.3% decrease in brand numbers compared to the previous year, but the total number of franchises increased by 3.4%.
Kim Myung-seon, head of the Fair Economy Division of the Seoul city government, said, 'We will strive to create a fair franchise environment so that the franchise business can be a good option for those preparing to start a business.'