South Korean food franchise firm TheBorn Korea has introduced a 5 billion won ($3.5 million) relief initiative to support its franchises nationwide, which have been hit hard by a slew of controversies over quality and hygiene issues.

The package includes a full waiver of franchise royalties for three months across all brands, helping alleviate fixed operational costs for owners.

Throughout May, TheBorn Korea will run a company-funded promotional campaign designed to increase foot traffic and boost sales. Franchises will bear no cost for participation.

Operating under 25 different brands, the company runs approximately 2,900 franchise locations nationwide, spanning everything from Korean barbecue chains to coffee shops.

The measure comes in the wake of CEO Paik Jong-won’s pledge last month to implement sweeping organizational reforms and rebuild trust, as the company has faced multiple investigations since January over alleged violations involving food safety, origin labeling and farmland use.

As a part of the relief efforts, the company will also offer temporary discounts on core ingredients to reduce cost pressures and stabilize profits.

Paik will personally host regional roundtable meetings with franchise owners this month, listening to on-site concerns and seeking collaborative solutions.

By Park Soo-bin (spark@heraldcorp.com)