Franchisees Collecting Monthly Dividends

Donga:

Ms. Kim Byeong-seon, who lives in Bucheon City, recently opened a skin-care clinic. Her initial capital amounted to 11 thousand dollars, including the security deposit for the lease.

Ms. Kim, however, does not really run the business. Still a franchisee in some sense, Kim has the chain headquarters run it, and collects her share of the profits. Every month, she receives an average of four thousand dollars.

“In the worst case, I can still get back my deposit. The lease is made in my name,” explains Kim. “I don’t have to worry about the daily operation of the clinic. But the return is a lot higher. I cannot make this much by my money depositing in a bank. I have no complaints.”

With more and more people showing interest in franchise businesses, franchisers have come up with a brand-new type of franchise business – the “investor-franchisee program.” The program is helpful for those who have no business background. Since the franchiser is in charge of the whole business operation, however, it also carries a high risk of losing the investment itself.

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