Thursday, November 21, 2019
Genesis BBQ Not Allowed to Add New Franchises Due to Faked Number of Its Members
Number Manipulation
Genesis BBQ Not Allowed to Add New Franchises Due to Faked Number of Its Members
  • By Michael Herh
  • November 22, 2016, 01:45
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BBQ chairman Yun Hong-keun’s unreasonable expansion of overseas business and the excessive diversification of its business are bringing in many side effects.
BBQ chairman Yun Hong-keun’s unreasonable expansion of overseas business and the excessive diversification of its business are bringing in many side effects.

 

CI of the BBQ
CI of the BBQ

 

It has been found that Genesis BBQ, a franchised chicken business operator, falsified the number of its members so it became impossible for the food company to recruit new members for the time being.

The Fair Trade Commission said on November 11 that the commission canceled its registration of its disclosure document after finding out that Genesis BBQ exaggerated the number of members in it on November 11.   

Genesis BBQ claimed that they had 7,709 merchants in the nation as of the end of this year. Among them, 80 were convenience stores and shopping malls selling half-cooked chicken products. Also, the figure included some members that did not operate as of the end of last year.

The FTC believes that the actual number of Genesis BBQ’s members is about 100 to 200 fewer than the figure in the information disclosure document. Genesis BBQ should re-register a correct information disclosure document and the FTC must complete its audit within 60 days from the date of receipt of the information disclosure document.

In the meantime, BBQ founded a subsidiary, Genesis BBQ Global dedicated to overseas business due to continuing deficits of its overseas corporations in June of last year.

It is said that the deficits are blamed on chairman Yun Hong-keun’s unreasonable expansion of overseas business and the excessive diversification of its business.