On December 20, 2023 (KST), the South Korean coffee brand Compose Coffee announced that, in celebration of their 10th launch anniversary, they signed with BTS‘s V for an endorsement.
BTS’s V | Compose Coffee
In doing so, Compose Coffee notified all of its 2,400 franchise owners across South Korea 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 of Compose Coffee inside the National Institute of Biological Resources. | nibr.go.kr
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.
— Franchise Owner to Insight
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.
| theqoo
Free whipped cream on the house, in celebration of V becoming our model! Hope you enjoy and order again soon. Thank you!
— Compose Coffee Franchise Owner
Most believe, especially at ₩72,000 KRW (about $55.40 USD) a month, BTS V’s influence for the brand will help the franchise owners beyond the initial concern over the fees.
| Nate Pann “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.”
In the meantime, Compose Coffee did confirm that the endorsement took place only after the franchise owners were surveyed and 75% of them voted to bring BTS’s V on board.
Read more about how V “spoiled” his coffee brand endorsement:
