What is the amount of variable lease payments for Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you will be leasing the Restaurant Location(s) of your Bonchon Restaurant(s), then promptly following our written approval of each proposed Restaurant Location, you must utilize a real estate broker we approve and obtain a lease or sublease for the Restaurant Location which, unless we otherwise approve the lease in advance, must be accompanied by a rider substantially in the form of Exhibit E of this Agreement. You agree to deliver to us a copy of any proposed lease or sublease for the Restaurant Location and any related documents (collectively, the "Lease") before you execute the Lease. Any Lease will be subject to our advance written approval, which we will not
unreasonably withhold or delay, provided, however, that we expressly reserve the right to disapprove any Lease not accompanied by a rider embracing all of the provisions of Exhibit C. If we do not communicate our approval or disapproval of a proposed Lease to you within twenty business days following our receipt of the proposed Lease, then the Lease will be considered and deemed to be disapproved.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, the document does not explicitly state the amount or percentage of variable lease payments. However, Item 23 discusses lease requirements and the relationship between the franchisee, franchisor, and landlord. Bonchon requires franchisees to use their best efforts to find an acceptable restaurant location and comply with all restaurant specifications, requirements, and restrictions. Bonchon must provide advance written approval of the restaurant location, and its determination will be final.
If a franchisee leases the restaurant location, Bonchon requires the franchisee to use a real estate broker they approve and obtain a lease or sublease accompanied by a rider substantially in the form of Exhibit E of the Franchise Agreement. Franchisees must provide Bonchon with a copy of any proposed lease or sublease and related documents before executing the lease, and any lease will be subject to Bonchon's advance written approval. Bonchon reserves the right to disapprove any lease not accompanied by a rider embracing all of the provisions of Exhibit C.
The FDD also states that if the lease is not executed due to the landlord withdrawing from the lease negotiation process, Bonchon will assume responsibility for paying the architectural fees owed to the AOR to date. However, if the franchisee elects to cease lease negotiations and not execute the lease because they refuse to personally guarantee the terms of the lease or comply with a request from the landlord that would not impede their development and/or operation of their restaurant, then the franchisee will be responsible for the AOR's architectural fees incurred to date per their architectural design services contract, provided that the rent for the restaurant location is at or below market rate for the trade area and the estimated total development cost of the restaurant falls within the cost range listed in the application.