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Sulbing gets warning from FTC for sales exaggeration

Aug 10,2019
The Fair Trade Commission (FTC) said Friday that it has issued a warning against dessert cafe franchise Sulbing for making false claims about its sales to potential franchisees.

According to the regulator, the shaved ice franchise provided information on expected sales from July to September 2014 to attract franchisees. It said at the time that the figures were based on sales of Sulbing establishments during a six-month period the previous year.

The FTC said the information could not have been correct, as Sulbing was established in August 2013 and started its franchise business in October 2013.

The corporate regulator said it expects the warning to prevent franchise establishments from providing false information to attract franchisees.

Sulbing grew rapidly after its establishment in 2013, operating 478 franchise establishments in 2015, according to data from the FTC. Its business has, however, recently slowed - there were only 421 franchise locations in 2017.

By Chae Yun-hwan