Korean Franchise Chain Cafe Bene Gets Large Fine for Treatment of Franchisees

This article published on the Daily Coffee News website speaks of another classic case of abuse of power by a franchisor.

The name of the chain, is Cafe Bene which has a whopping 760 locations in South Korea and is now expanding into North America.

The are being fined for forcing franchisees to buy interior materials and equipment which created another nice profit pool for the franchisor.

One piece of silver lining to be gleaned from the story is that the fine is coming from a government agency, not a private law suit.  Hopefully this will send a strong message to franchisors that financially abused franchisees may have other resources to fight abuse franchisors with other than money from their own pocket.

British Columbia does not currently have any legislation to protect franchisees as multiple other provinces do.