SM cancels deal with Kraze

The partnership between SM Entertainment and Kraze International, the company behind the handmade burger chain, Kraze Burger, has come to an end.

SM has announced in a statement that it has informed Kraze International of the cancelation of the agreement deal on the joint venture with the restaurant burger chain company, thereby putting an end to the limited company set up by the two parties, SM Kraze.

The two companies established SM Kraze in April of this year with the plan of opening a chain of chicken and beer bars called “Chimekhanjan”.

According to the statement from SM Entertainment, “the two companies have not been seeing eye-to-eye for some months now and were in the process of canceling the agreement deal when Kraze International put out a press release announcing the opening of new stores as well as expansion of the franchise business.”

“We want to clarify that the agreement deal is now canceled. We hope there will not be any unwitting victims arising from the situation,” went on the statement from SM Entertainment.

SM Kraze’s press release of December 21 states that “The Cheongdam branch of Chimekhanjan is to open on December 24 and they plan to open 100 franchise branches of the brand in 2013.” There are currently two Chimekhanjan branches in the surburbs of Seoul.

SM cancels deal with Kraze

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