Subtitled News: "BTS V's 7.3 Billion Won Contract Renewal" Sparks Backlash Among Franchise Owners Selling 1,500 Won Coffee

The low-cost coffee franchise Compose Coffee is facing growing backlash from some of its franchisees as it pursues a contract renewal with its advertising model, BTS member V.

The head office is currently conducting a vote among store owners, and the renewal will be finalized if a majority agrees.

The scale of this contract is approximately 7.35 billion won. If the deal goes through, franchisees will have to bear an advertising cost of around 80,000 won per store each month, which is equivalent to the profit from selling more than 54 cups of Americano per month.

Some store owners are raising complaints, stating, "We sell Americanos for 1,500 won, so the burden of advertising costs is too high."

There are also many who say they "have not felt the 'BTS effect' at all."

It was reported that the advertising cost burden for franchisees had already increased to around 90,000 won per month last year.

On the other hand, Compose Coffee's head office stated that brand awareness and preference have increased since hiring V as a model, and that they are disclosing the number of participating stores and the ratio of votes for and against to ensure transparency in the voting process.

This controversy is seen as an example of the differing perspectives between the head office and franchisees regarding the rise in brand value versus the cost burden associated with star marketing.

Whether the third contract with V will be finalized is expected to be determined by the results of the franchisee vote.

Reported by Kim Da-yeon | Video by Lee Da-in | Video Source: Compose Coffee Official YouTube | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.