What was the amount of depreciation and amortization for Bonchon in 2024?

According to Bonchon's 2025 Franchise Disclosure Document, the depreciation and amortization expense for the year ending December 31, 2024, was $330,221. Depreciation and amortization are accounting methods used to allocate the cost of tangible and intangible assets over their useful lives. This expense reflects the reduction in value of Bonchon's assets during the specified period.

For a prospective franchisee, understanding depreciation and amortization is crucial as it impacts the net income and overall financial health of the franchise. While this figure reflects Bonchon's overall depreciation and amortization, franchisees will also incur these expenses related to their own restaurant's assets, such as equipment and leasehold improvements. These expenses are tax-deductible and can lower the overall tax liability of the business.

It's important to note that depreciation and amortization are non-cash expenses, meaning they don't represent actual cash outflows. However, they do reduce the reported profit, which can affect various financial ratios and metrics used to evaluate the business's performance. Franchisees should consult with a financial advisor to understand how these expenses will impact their specific financial situation and to plan accordingly.