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