Cosmetics franchisor sales rise 28.4% as TonyMoly and Skinfood franchise networks shrink

South Korea’s cosmetics franchise sector has seen franchisor sales expand while some franchise networks have contracted. According to an analysis released by Leaders Index on 6 October, combined franchisor sales at the four cosmetics brands surveyed rose 28.4% between 2023 and 2025. Over the same period, however, the number of franchised outlets fell at TonyMoly, Cellenique and Skinfood. The findings suggest that assessing trading conditions for physical franchise outlets requires looking at changes in each brand’s network, rather than relying on franchisor performance alone.

Four cosmetics brands record combined franchisor sales of KRW 375.5 billion

The analysis drew on data from the Korea Fair Trade Commission’s franchise information disclosure system and the Financial Supervisory Service’s electronic disclosure system. Leaders Index examined 258 brands with comparable figures for 2023 and 2025 across eight categories: cosmetics, fast food, fried chicken, dining, convenience stores, bakeries, coffee and beverages, and pizza. Four cosmetics brands were included.

Combined franchisor sales at these cosmetics brands rose from KRW 292.5 billion in 2023 to KRW 375.5 billion in 2025. That represents an increase of KRW 83 billion, or 28.4% — the highest franchisor sales growth rate among the eight categories surveyed. As the comparison covers brands with data available for both years, it offers an indicator of performance trends among the cosmetics franchisors included.

These figures do not, however, represent the performance of all South Korean cosmetics brands. The sample comprises four brands, and the 28.4% increase compares their combined franchisor sales. It should not be interpreted as meaning that every company grew at the same rate, or that all cosmetics franchise outlets experienced similar changes in demand.

Crucially, combined franchisor sales and franchise outlet numbers measure different things. The former shows the scale of franchisors’ sales, while the latter indicates the size of their franchised store networks. Viewed together, the two measures show that franchisor expansion does not necessarily go hand in hand with an increase in franchised outlets.

TonyMoly loses 29 franchised outlets and Skinfood 12

The brand-level outlet figures reveal the extent of network contraction. TonyMoly’s franchised outlet count fell from 111 in 2023 to 82 in 2025. Cellenique’s fell from 17 to 15, while Skinfood’s declined from 19 to seven. All three recorded a reduction over the same period, but both the scale of the decline and the size of their original networks differed.

A simple comparison of the opening and closing years shows net reductions of 29 outlets for TonyMoly, two for Cellenique and 12 for Skinfood. Skinfood’s network, in particular, went from 19 franchised outlets to seven. These figures demonstrate that the brands’ franchise networks became smaller, but do not in themselves explain how individual shops performed.

Care is needed before treating these reductions as closure figures. The difference between outlet counts at two points in time shows the net change. The number of new openings and contract terminations during the period, and any changes in operating model, must be checked separately. Outlet counts alone cannot establish why a network shrank.

Nor should changes at these three brands be treated as equivalent to changes across all four cosmetics brands surveyed. It is important to distinguish between the scope of the combined franchisor sales analysis and the individual brands whose outlet figures are reported here. Even figures from the same study are not directly interchangeable if they cover different groups.

Distinguish the sources of franchisor growth from outlet performance

The notable finding is not simply the high rate of sales growth among cosmetics franchisors. The key point is that some brands’ franchise networks became smaller during the period in which franchisor sales expanded. Understanding changes in the cosmetics franchise sector requires examining sales growth and the restructuring of physical store networks separately.

There is no basis, however, for concluding that the fall in franchised outlet numbers caused franchisor sales to rise. Equally, higher franchisor sales do not establish that sales increased at the remaining outlets. Observing that two measures moved in opposite directions over the same period is different from explaining why they did so.

Identifying the sources of franchisor sales growth requires further information on the sales mix and performance by sales channel. Assessing franchisees’ circumstances requires other data, including sales per outlet, length of operation and operating costs. The combined franchisor sales and brand-level outlet counts alone cannot establish which channels drove growth or how franchisees’ profitability changed.

Sales and profit must also be distinguished. The KRW 83 billion increase in franchisor sales does not mean franchisor profit rose by that amount. Nor does a reduction in franchised outlet numbers directly indicate falling profits at the remaining shops. For these figures to inform operational decisions, any discussion of growth or contraction needs to be clear about exactly what increased or decreased.

Check network changes when considering a franchise

Prospective franchisees considering a cosmetics brand should review changes in its outlet numbers alongside the franchisor’s growth rate. As TonyMoly, Cellenique and Skinfood illustrate, brands within the same category can have very different network sizes and rates of contraction. A category-wide growth rate is no substitute for assessing an individual franchise outlet’s business prospects.

The order of these checks also matters. First, ensure that franchisor sales and franchise outlet figures cover the same years. Then examine the components of network change separately, including new openings and contract terminations. Reviewing the store network in the target area and franchise outlet sales data can then help bridge the information gap between the franchisor’s overall scale and a practical decision about opening a shop.

For existing franchisees, the figures also suggest questions to raise with their franchisor. These include the reasons behind network changes, future plans for franchise operations, and how franchisor sales growth relates to support for franchisees. Judgements should nevertheless be based on verifiable information and explanations, rather than an assumption that a particular brand has cut support or changed its trading strategy.

In practice, the priority is to check franchisor sales growth, brand-level outlet changes, and individual outlet sales and costs separately. The starting point is not to treat news of cosmetics franchisor growth as a direct indication of franchisees’ profit prospects.