Compose Coffee Forces Franchise Owners To Pay Off V’s Endorsement With Sky-High Price

On the 20th of this month, just 1 week after V enlisted, ḳöŕệän coffee brand Compose Coffee announced that they had signed an advertising model contract with V. This is a brand promotion project initiated by V on the brand's 10th anniversary next year. 

While V's ads were starting to be deployed at franchised store chains, some of these store owners began to complain about the high fees Compose Coffee charged them to pay for his appearance. However, the "ARMY" effect after V's advertisements appeared at franchised stores has made these owners reconsider the amount of money they spend.

In recent days, the story between franchise stores, the Compose Coffee brand, new model V and ARMY is being hotly discussed:

V is famous for being 'the muse that every brand desires'. He has become the ambäṩṩador of many luxury brands as well as global companies, including CELINE, Cartier, SimInvest,... In particular, even before joining the army, V also achieved deal with ḳöŕệän coffee brand, Compose Coffee.

Compose Coffee appreciates V because he gains so many top achievements in music. And the reason for choosing him as their new model is because he is consistent with the brand spirit of Compose Coffee, which has only focused on coffee for 10 years. An official of this brand told the media: "We're excited to work with a global artist who is loved by people all over the world regardless of age or gender. Through synergy with '21st century pop icon' BTS V, Compose Coffee will also take a leap forward in the coming year.”

Moreover, it is reported that Compose Coffee has not focused on using celebrities as models for many years because of concerns about model fees. But when they learned it was V, the vast majority of franchise owners enthusiastically agreed with more than 75% of the votes in favor.

In doing so, Compose Coffee notified all of its 2,400 franchise owners across South ḳöŕệä that the advertising funds would be collected from them. According to Compose Coffee franchise owners, the brand is charging the individual franchise owners ₩2.00 billion KRW (about $1.54 million USD) of the ₩6.00 billion KRW (about $4.62 million USD) endorsement fee—making them pay ₩72,000 KRW (about $55.40 USD) per month for the next 12 months.

While the headquarters is taking on the hefty two-thirds of the payment, at ₩4.00 billion KRW (about $3.08 million USD), franchise owners are feeling burdened that the fees are excessive—according to Insight. A franchise owner said to Insight: "It’s a lot. In total, I’d have to put in about ₩1.00 million KRW (about $770 USD) and I don’t have that. I’d have to double sales to be able to afford sending in those fees. I don’t understand the headquarters pushing their advertisement fees onto the franchise owners."

On the other hand, contradicting the reports, some Compose Coffee franchise owners have already seen a spike in their sales—thanks to the new ARMY customers. Online posts have shared ARMYs ordering coffee from their local Compose Coffees and receiving handwritten notes of appreciation and even freebies from franchise owners celebrating the endorsement. One of Compose Coffee's franchise stores gave away fresh ice cream with the message: "Free whipped cream on the house, in celebration of V becoming our model! Hope you enjoy and order again soon. Thank you!"

Most believe that, especially at ₩72,000 KRW (about $55.40 USD) a month, V's influence on the brand will help franchise owners overcome initial concerns about fees . Just looking at the huge numbers that luxury brands like CELINE and Cartier have earned since V became their brand ambäṩṩador shows a similar scenario for store owners:

- I don’t doubt for a second that the franchise owners will be able to scoop back all of the 12-months worth of fees on the first day that the ads drop.

- ₩72,000 KRW (about $55.40 USD) per month to have BTS’s V advertise my franchise? I’d be so down.

- I mean, while V is endorsing the brand, I’ll be drinking Compose Coffee as often as possible. So…

- Give it half a day, and V will make up for the year’s worth of endorsement fees being pushed on them.

- I saw the new strawberry menu dedicated to V. I can’t wait to try it.

- I just had compose Coffee with my mom that day. A lot off people waiting for V's menu