'Korea Pizza Hut Aftermath' expected to be filed... Daeryun Law Firm Strengthens Franchise Team

Pizza Hut Korea loses lawsuit over franchise fee difference... Shaking up the distribution industry
Daeryun strengthens the franchise team within the corporate legal group... “I’ve finished preparing the law.”

Daeryun Law Firm announced on the 12th that it has strengthened the franchise team within its corporate legal group in preparation for the aftermath of Pizza Hut Korea's franchise difference lawsuit.

Previously, the Seoul High Court ruled in partial favor of the plaintiff in a lawsuit filed by Pizza Hut Korea franchise owners against the company's headquarters in September.

The intention is that it is unfair for the head office to supply essential items such as raw and subsidiary materials at a price difference without the franchisee's consent.

Pizza Hut Korea, which is in danger of having to return over 21 billion won in franchise fees, recently applied to the court to initiate rehabilitation procedures.

Although the Supreme Court's final judgment still remains, this lawsuit has caused great confusion in the franchise industry.

This is because a significant number of franchise headquarters in Korea earn profits by charging differential franchise fees. In fact, it is known that franchise owners of some franchise companies are preparing related lawsuits.

Daeryun announced its policy to reorganize the franchise team within the corporate legal group to reflect this industry situation and actively respond to related lawsuits.

The franchise team is comprised of professional lawyers in various fields, led by attorney Won Il Won, a former judge at the Seoul Central District Court and former head of the legal office at POSCO Future M.

The team is supported by attorneys Kim Won-sang, who represented franchise owners in the Pizza Hut unfair profit recovery lawsuit, as well as Na Chang-soo, Shin Jong-soo, Park Seong-yoon, Kim Da-eun, Park Jong-woo, and Jeong Woo-young.

They plan to provide higher quality legal services based on their experience working in various related organizations such as the Korea Fair Trade Mediation Service and the Franchise Business Dispute Mediation Committee.

Won Won-il, head of the Daeryun Corporate Legal Group, explained, “It is expected that many similar lawsuits will be filed in the aftermath of the Pizza Hut Korea incident,” adding, “We have strengthened the team by bringing in additional lawyers with experience in handling many franchise-related lawsuits.”

In fact, lawyer Kim Won-sang of the franchise team, who directly participated in the Korea Pizza Hut lawsuit, explained, "The gist of the court's ruling is that franchise fees that are not agreed upon in advance are unfair profits." He added, "Both franchise owners and franchise headquarters need to understand these issues well and establish customized strategies."

He added that the Daeryun franchise team has completed legal preparations to respond to any cases that are filed.

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Tax Daily -'Korea Pizza Hut Aftermath' expected to be filed... Daeryun Law Firm Strengthens Franchise Team (Click here)

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