Potato Corner speaks up on franchise allegations: 'Incidents like these do not align with our values, policies'
Potato Corner has issued a statement following claims about their franchising, including opening company-owned branches in locations originally proposed by franchise applicants.
In case you missed it, a discussion on Reddit is circulating on social media alleging that Potato Corner bypasses the franchise applicant's proposal.
"Makwento ko lang. Nag try friend ko mag franchise ng Potato Corner. Pinag submit sila ng proposal including kung saan ang location nila, bakit maganda dun at sino ang magiging target audience. After nila i submit, confident ang friend ko kasi maganda raw pagkakagawa nya ng proposal. After ilang weeks, ilang months though hindi sila binalikan ni Potato Corner tapos yung exact location na nilagay nya sa proposal nya dun mismo nag tayo ng bagong branch si PC. [N]apaka sketchy lang ng business practice," a user wrote.
Another Reddit user claimed that the same incident happened to a long-time PotCor franchisee in Cebu.
"The client had been franchising Potato Corner for many years and kept renewing. When the company saw how strong the sales were in that location, they suddenly stopped offering a renewal contract. After the franchise ended, Potato Corner opened their own company-owned store in the same mall. The franchisee couldn't really do anything about it. Really unfortunate and sad for someone who helped build the brand in that location," a Reddit user also wrote.
In its Dec. 17 statement, the company said that such incidents "do not align with our values, standards, and policies."
"At Potato Corner, we take these matters very seriously. We want to clarify that incidents like these do not align with our values, standards, and policies. At PotCor, our franchisees are our partners, and our growth has always been built on shared success. We do not take actions that intentionally disadvantage the very entrepreneurs who help grow our brand," they wrote.
They added that as part of their internal investigation, their team has reached out to individuals who raised the issue to "have a better understanding of their concerns, verify the details, and act on the claims."
"While we have not received any response, our lines remain open should they wish to engage. Together with our internal investigation, we hope to address these concerns properly," they added.
"We would like to reassure our franchise community that preventive controls and measures are in place to ensure effective and appropriate site selection for our valued franchisees.
"We remain committed to fair, respectful, and responsible practices, ensuring win-win outcomes across the Potato Corner community," they concluded.
On its website, Potato Corner offers franchise packages ranging from P325,000 to P475,000, inclusive of value-added tax, franchise fee for five years, wares, equipment, and initial Supplies worth P5,000.
To apply for a franchise, you must submit a completed Letter of Intent, two valid IDs, a fully completed Application Form, a filled-out Market Study and Site Analysis Form (including actual photos and measurements of the proposed area), and a Draft Lease Offer or Contract from the lessor if you'll rent a space. PotCor said you can apply as a sole proprietor, part of a partnership, or a corporation.
Meanwhile, the renewal fee is 50% of the current franchise fee. The franchise also does not charge any royalty fees.
