On June 22, Compose Coffee sent franchisees a ballot concerning a new contract covering July 2026 through June 2027. The agreement can move forward if more than 50% of store owners approve it.
The campaign is expected to cost approximately 7.35 billion won, or around $4.8 million. Compose Coffee currently divides advertising expenses at a 6:4 ratio, with headquarters paying 60% and franchisees covering the remaining 40%. Under the proposed deal, franchise owners would collectively contribute about 2.94 billion won. Each store would pay approximately 80,000 won per month.
Some owners argue that the fee is considerable for a low-cost coffee business. Since an Americano at Compose Coffee costs 1,500 won, a store would need to sell more than 54 cups to generate revenue equal to the monthly advertising contribution, without considering ingredient, labor and rental costs.
One franchise owner claimed that many stores had not experienced a clear “BTS effect” and questioned whether the campaign’s benefits justified the expense. Some owners are reportedly considering legal action, while others have requested greater transparency regarding the voting process.
Compose Coffee defended its partnership with V, stating that the singer had significantly improved brand awareness and public favorability. The company also said each store’s monthly contribution would be 11.3% lower than last year and emphasized that its 60% share exceeds the usual industry level.
Compose Coffee reportedly spent around 6 billion won on campaigns featuring V in 2024 and 10 billion won in 2025. The result of the franchisee vote will determine whether the partnership continues for a third year.
Sources: LD
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