What was the amount of provisions for Bonchon's allowance for credit losses in 2024?

According to Bonchon's 2025 Franchise Disclosure Document, the provisions for allowance for credit losses in 2024 was $14,355. This figure represents an estimation of potential losses from franchisees who may not be able to fulfill their payment obligations. This allowance is a contra-asset account, reducing the stated value of accounts receivable to reflect the net amount Bonchon realistically expects to collect.

For a prospective Bonchon franchisee, this indicates that Bonchon acknowledges the risk of franchisees defaulting on payments. The provision for credit losses suggests that Bonchon has taken a proactive approach to account for potential uncollectible amounts from its franchisees.

It's important to note that while Bonchon sets aside this allowance, it doesn't directly impact the financial obligations of a new franchisee in good standing. However, it does reflect the overall financial health and risk management practices of the franchisor, which can indirectly affect the support and resources available to franchisees. Understanding these figures can help a potential franchisee assess the financial stability of Bonchon and its approach to managing financial risks within its franchise system.