Compose Coffee to Have Franchise Owners Cover 40% of BTS’s V’s Ad Fees

The budget-friendly coffee brand Compose Coffee is pursuing a renewed advertising contract with BTS member V, deciding that franchise owners will bear 40% of the ad costs. The total advertising expense for the next one-year contract, set to run from July 2026 to June of the following year, amounts to approximately 7.35 billion won, with franchise owners responsible for 40% of this amount, or 2.94 billion won.

The contract budget is divided into 5.4 billion won for branding through V and 1.95 billion won for other model and influencer campaigns. The franchise headquarters will cover 60% of the total, or 4.41 billion won, while the remaining 40%, or 2.94 billion won, will be shared by franchise owners. Each franchise outlet is required to pay approximately 80,000 won per month (excluding VAT).

This is not the first time Compose Coffee has entered into an advertising contract with V. When V was hired as the first advertising model in 2024, franchise owners covered 40% of the total advertising cost of 6 billion won, paying 72,000 won per outlet per month for one year. Under the contract from July 2025 to June 2026, the estimated advertising expenses rose to 10 billion won, increasing the monthly cost per outlet to approximately 90,000 won (excluding VAT).

Franchise owners have expressed concern over the headquarters’ policy. According to the revised Franchise Business Act, franchise headquarters can conduct advertisements targeting all outlets and charge fees if more than 50% of the franchise owners agree. Compose Coffee’s franchise headquarters recently sent a vote-on proposal regarding the advertising expenses to franchise owners, with the contract set to proceed if approval rates exceed 60%.

As part of its marketing expenditures, Compose Coffee continues to increase its advertising investment. Its marketing costs rose from 7.7 billion won in 2024 to 10 billion won, showing a growth rate of 29.9%, amid increasingly fierce competition in the coffee market.