[Data Pick] Golfzon Registers 'Range', Eland Cancels 'Frangerie'... Franchise Market Concentrated in Food Service in July

The Fair Trade Commission has released the status of new registrations and registration cancellations of franchise business information disclosure documents for July 2026. During the month, 128 new business signs were registered, and 32 business signs were canceled.

Although the number of new registrations on the list was four times the number of cancellations, it is difficult to interpret this as meaning the franchise market size has grown by that much. Registering an information disclosure document is merely a legal procedure to begin recruiting franchisees and does not guarantee the actual opening of franchise stores. Conversely, a registration cancellation can also occur not only due to brand closure but also due to the suspension of franchisee recruitment, conversion to directly managed stores, or changes in business plans. However, in the July list, while new entries and exits were simultaneously concentrated in the food service industry, a clear trend emerged of existing operators, such as Golfzon and Kiyoung F&B, testing new business formats and menus.

Golfzon Kick-starts Domestic Franchising of '24-Hour Unmanned Golf Practice Ranges'

Among companies with high brand awareness, the most notable new registration case is Golfzon. On July 3, Golfzon registered the information disclosure document for 'GOLFZON RANGE' under the service industry. Golfzon Range is a private-room type golf practice facility operated unmanned 24 hours a day. It utilizes 'Golfzon RX', Golfzon's next-generation practice system, and features a structure that connects users with lesson pros through the Golfzon application. On July 8, immediately after registering the information disclosure document, Golfzon began recruiting lesson pros and formalized its plan for a nationwide franchise business in the second half of the year. This is interpreted as Golfzon expanding its business model from existing screen golf franchises to small, unmanned spaces combining personal practice and lessons. Another feature is that it can combine equipment sales, franchise operations, and platform-based lesson mediation in a single space.

A total of 23 new service brands were registered in July. Besides Golfzon Range, '24-Hour Cagong Lounge Jakdang Base', 'Cacti Gacha Shop', 'Cube Board Game Cafe', 'OTT Cinema', and 'Cinebook' were also listed. It appears that franchise models combining unmanned spaces, entertainment content, and time-based space usage are increasing, in addition to traditional education and beauty services. Pharmacy brand 'Wello Pharmacy', scalp care brand 'Head Spa K', and precious metals trading brand 'Korea Precious Metals & Gems Exchange' were also newly registered. Although smaller in scale compared to the food service industry, this shows that the targets of franchise businesses are being segmented into leisure, health, and specialized services.

'Duzzim' Operator Ventures into Braised Monkfish... Existing Operators Also Experiment with New Brands

In the food service industry, the brand expansion of existing franchise companies was prominent. Kiyoung F&B, which operates 'Duzzim', 'Tteokcham', and 'Kiyoungi Charcoal Two-Chicken', newly registered 'Haengun Aguzzim (Lucky Braised Monkfish)' on July 1. This is interpreted as a strategy to expand its experience in operating steamed and delivery menus into braised monkfish.

Ilmiri registered 'Ilmiri Orai' on July 9, and Bangatgan Company registered the Korean food brand 'Sonyeo Bangatgan' on July 21. Daejang F&B registered two brands, 'Samgyeop Express' and 'Samgyeop Daejang', simultaneously on July 29. These are examples of incorporating existing brands into a new franchise system or testing multiple brands with different price ranges and store formats based on the same ingredients.

Out of a total of 128 new registrations, the food service industry accounted for 98 cases, or 76.6%. The service industry had 23 cases, and the wholesale and retail industry had 7 cases.

Among new food service brands, there were many single-menu type brands that included the menu directly in their business names, such as kalguksu, gukbap, kimchi jjim, gamjatang, samgyetang, gopdoritang, pork belly, and sushi. Brands targeting the demand for solo drinking or small pubs, such as 'Hertz Honsool Bar', 'Seoul Honsool Bar Jeju Honjaopseoye', 'Jeopsi Pocha', and 'Hwanggeum Pocha', were also noticeable. There were also quite a few cases where individual restaurants or local popular eateries entered the franchise business based on their experience operating the main store. This can be seen as a trend to standardize a single verified menu to expand mainly through small-sized stores or delivery/takeout, rather than making large-scale investments. However, registering an information disclosure document does not necessarily mean securing actual franchises or verifying profitability.

Eland Eats Ends New Franchise Expansion of 'Frangerie'... Direct Management Operations to Continue

In the registration cancellation list, Eland Eats' bakery brand 'Frangerie' is the most conspicuous. On July 6, Eland Eats voluntarily canceled the information disclosure document registration for Frangerie. With the registration cancellation, the recruitment of new Frangerie franchises is effectively suspended. However, the brand itself is not withdrawing. Eland Eats stated that it cleared out the information disclosure document registration because there are no plans to open additional franchise stores, and its position is to continue operating existing franchise and directly managed stores. The number of Frangerie franchise stores increased from 7 in 2022 to 12 in 2023 and remained at 12 in 2024, but only 1 remained as of July this year. At the same time, there are 5 directly managed stores. Eland Eats is placing more weight on direct management operations that can directly control product quality and store experiences rather than external expansion through franchises.

In addition, food service brands that had maintained information disclosure documents for a relatively long period or had consumer touchpoints, such as 'Nemo Squid', 'Saengsaeng Jjukkumi', 'Manyo Tteokbokki', 'Horangi Rice Noodle', 'Tongkeun Gamjatang', 'Han Myung-sook Pizza Chicken', and 'Wooreomma Wangmandu', were also included in the July registration cancellation list. However, the reasons for the registration cancellations of these brands cannot be confirmed by the list alone. It should not be concluded that the relevant brands have closed all their stores or completely ended their businesses. All 32 cancellation cases in July were classified as 'voluntary cancellations' rather than ex officio cancellations by the FTC.

Both Entry and Exit in Food Service... The Short Life Cycle of New Brands

Out of the 32 registration cancellations, the food service industry accounted for 26 cases, or 81.3%. The service industry had 5 cases, and the wholesale and retail industry had 1 case. In other words, not only new registrations but also registration cancellations were concentrated in the food service industry. In particular, among the 32 canceled brands, 15 brands (46.9%) were registered after 2023 based on their registration numbers. Counting only those registered after 2024, there were 10 brands. This means that a significant number of brands withdrew their franchise business plans or cleared their registrations within a few years of registering their information disclosure documents.

Although the food service industry can convert a single store's menu and operation method into a franchise model with relatively little capital, similar brands are rapidly increasing, and the cost burden of ingredients, labor, and delivery fees is high. Since the entry of new brands is active, there is a high possibility that the business will be suspended at the franchisee recruitment stage if brand awareness is not secured.

Ultimately, the July information disclosure document status shows that rather than the domestic franchise market simply expanding, it has a structure where a large number of small brands constantly enter, existing companies also test new formats, and at the same time, franchise models with low competitiveness are quickly cleared out. From the perspective of prospective franchisees, it is difficult to judge business viability solely based on whether an information disclosure document is registered or the fact that it is a new brand. It is necessary to comprehensively examine the number of currently operating franchise and directly managed stores, recent store increases/decreases, average sales, status of contract terminations/cancellations, initial investment costs, and the headquarters' financial condition.