Knotted withdraws franchising plans after cancelling disclosure registration; GFFG relocates headquarters

GFFG, the operator of doughnut brand Knotted, has reportedly withdrawn its plans to enter franchising. According to a Biz Hankook report dated 30 October 2026, GFFG registered a franchise disclosure document for Knotted in December 2024 but cancelled the registration in March 2026. Several shops have also closed, and the company has relocated its headquarters. For those considering South Korea’s franchise market, this case highlights the need to distinguish brand recognition from an active franchising programme.

Franchising plans withdrawn after disclosure registration

GFFG registered a franchise disclosure document in December 2024 as it prepared to introduce franchising for Knotted. However, it cancelled the registration in March 2026 and withdrew those plans. The central point of the report is that the company changed direction while still preparing to enter franchising.

It is important to distinguish preparations for franchising from the actual operation of franchised outlets. Registering a disclosure document does not, in itself, establish that franchisees were recruited or that franchised shops opened. The confirmed sequence is the registration of a disclosure document, its subsequent cancellation and the withdrawal of plans to enter franchising. This should not be interpreted as the closure of an existing network of franchised outlets.

The nature of the cancellation also needs to be understood accurately. The report said GFFG cancelled the registration as it revised its expansion plans. It did not describe the cancellation as a regulatory sanction. On the evidence reported, the decision is therefore best understood as a change in the company’s business strategy.

For prospective franchisees, the key point is that past announcements about preparations for franchising do not establish whether recruitment is currently under way. Even with a familiar consumer brand such as Knotted, it is necessary to check separately whether franchising is being pursued and whether those plans remain in place. A past registration should not be treated as evidence of the business’s current status.

Several shops close, with around 28 still operating

Biz Hankook reported that several Knotted branches had closed during 2026, including those in Anguk and near Gangnam Station in Seoul, The Hyundai Daegu, Galleria in Cheonan and Lotte Department Store’s Busan main branch. It put the number of Knotted shops still operating at around 28. The reported closures included both neighbourhood locations in Seoul and department store outlets elsewhere in South Korea.

This figure should be read as an approximate snapshot of the current shop network. It would be misleading to turn ‘around 28’ into a definitive total or to describe it as the number of franchised outlets. The withdrawal of franchising plans and the status of existing shops are related business developments, but they are not the same measure.

Nor do the closures alone establish the performance of the brand as a whole or the profitability of individual shops. Although the closure of particular branches has been reported, there is no basis for assuming that each closed for the same reason. Explanations that attribute the closures to lease terms, contract expiry or shop-level profitability should therefore be avoided without further evidence.

Nevertheless, the combination of withdrawn franchising plans and closures within the existing network marks a different direction from an announcement of new openings. Brand recognition should not be confused with an ongoing commitment to expanding the shop network. For anyone considering becoming a franchisee, the company’s current operating strategy matters just as much as its public profile.

GFFG moves headquarters from Samseong-dong to Sinsa-dong

In early October 2026, GFFG moved its registered head office from Samseong-dong to Sinsa-dong, both in Seoul’s Gangnam district. Biz Hankook reported that the new headquarters office was around half the size of the previous premises. Alongside the revised franchising plans, the company’s office space has therefore also changed.

A headquarters move indicates a change in how the company operates, but it does not, on its own, show how much the wider organisation may have contracted. A reduction in office space should not be equated with a reduction in staff numbers. Office size, employment levels and the scale of individual business operations are separate indicators that need to be checked independently.

The same caution applies to costs. A report of smaller premises is not enough to estimate rent savings or the overall reduction in expenditure. The facts available here are the timing of the move, the old and new locations, and the reported relative size of the offices. Any further financial effects remain unconfirmed.

The report also discussed rumours of a sale of Knotted. However, sale rumours are not the same as a confirmed transaction. Neither the headquarters move nor the shop closures should be treated as evidence that a sale has been completed. The confirmed withdrawal of franchising plans must be kept separate from speculation about ownership.

Start franchise due diligence by checking the current business status

The practical lesson for those assessing franchise opportunities is clear. A familiar consumer brand and a franchise business that prospective owners can actually join are two different things. Knotted prepared to enter franchising by registering a disclosure document, but later withdrew those plans. News from the preparatory stage should not be taken to mean that the same opportunity remains available today.

Anyone considering a franchise should first check the current status of the disclosure registration and whether the company is officially recruiting franchisees. Even if older articles or promotional materials still refer to franchising preparations, it is worth confirming that those plans remain valid. Where a registration has been cancelled or a change in business strategy has been reported, the latest position should take priority.

When reviewing outlet numbers, it is also important to distinguish the total shop network from franchised locations. The existence of multiple shops does not, by itself, mean that a franchise model is in operation. Checking shop numbers, recruitment status and business plans separately reduces the risk of making a decision based largely on a brand’s popularity.

It is not yet possible to say how these changes will affect Knotted’s future operating scale or ownership. What has been confirmed is the withdrawal of franchising plans, several shop closures and the relocation of headquarters. In practical terms, the priority is to check the current registration status and official franchise recruitment position, rather than rely on past expansion announcements.