Compose Coffee is looking to renew its advertising contract with BTS’s V for a third year, but some franchise owners are pushing back over the cost.
According to the foodservice industry, on June 22nd, the coffee chain recently sent franchisees a proposal tied to V’s potential contract renewal. A vote is currently underway, and the deal will move forward if more than 50% of franchisees agree.
Compose Coffee first signed V as its model in 2024 and renewed the deal in 2025. The new one-year contract, set to run from July through next June, is expected to cost about 7.35 billion won (around $4.8 million). Franchisees would cover 40% of that, bringing each store’s monthly share to about 80,000 won (around $52).
Some owners say the fee is burdensome for a budget coffee chain whose Americano sells for 1,500 won. One franchisee said many owners “don’t feel the BTS effect at all,” adding, “We’re selling 1,500 won coffee, and it’s frustrating to be told to pay monthly ad fees for a celebrity model we didn’t ask for.”
The owner also said some franchisees have questioned the voting process and asked the company to disclose which stores voted for or against the proposal.
Compose Coffee said the campaign followed franchisee requests to respond to rival brands’ star marketing and has gone through proper consent procedures. The company added that it has reduced the total ad budget from last year and lowered franchisees’ monthly burden by about 11.3%, while headquarters continues to cover around 60% of the total cost.
The brand said it believes V has meaningfully boosted awareness and preference, and that it will keep communicating with franchisees while working to strengthen competitiveness.
Reactions from netizens have been sharply divided. One netizen argued that people choose budget coffee brands for their prices and menu offerings, not because of their celebrity endorsers, and claimed that the model fee was excessive. Another netizen explained that advertising costs involve much more than just the endorsement fee, including production expenses for commercials as well as the cost of items such as cup sleeves and posters distributed across all store locations. Some also commented that they first became aware of the coffee brand because of BTS member V.
Here are the screenshots of the reactions from netizens who read the article:
>> BTS’ V Ranks Among World’s Most Googled Figures, Alongside Trump and Musk
In the meantime, watch trending K-dramas for free on Amasian TV.
Source (1)
