[Alpha Biz=(Chicago) Reporter Paul Lee] The Fair Trade Commission has launched an investigation into private equity-owned franchise companies that have been suspected of abusing their power, such as unilaterally transferring promotional costs to franchisees.

According to the industry on the 5th, the FTC has sent investigators to the bhc headquarters and Mega MGC Coffee headquarters to secure data on the operation of the franchise business.

The Fair Trade Commission is investigating whether these companies over-designate essential items without the consent of franchisees or pass on the costs of promotional events.

bhc has been controversial since private equity fund MBK Partners participated as an investor in 2018 by raising delivery unit prices and consumer prices at the same time.

Mega coffee owned by private equity funds is also suspected of transferring advertising costs to franchise owners.

The FTC said, "We cannot confirm the issue under investigation," but added, "We will take stern measures if there are any violations of the law."

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