What is the annual dues amount for a Bonchon franchise, and when is it payable?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
From the opening date of your Bonchon Business and continuing through the end of the Initial Term of the Franchise Agreement, you agree to pay us a weekly Continuing Royalty equal to 5.0% of your previous week's Gross Revenues, as defined in Section 5.05. The Continuing Royalty is solely in consideration of our granting you the franchise conferred by this Agreement and is not in exchange for any particular goods, services or assistance we may furnish you.
If you are operating your Bonchon Business while you are in material default of any provision of this Agreement other than those defaults enumerated in Section 17.01 or 17.02, the weekly Continuing Royalty rates set forth above will be tripled to 15.0% for each and every one of your operating Bonchon Businesses during a period commencing on the date you receive from us a written notice of material default and ending on the date the material default is cured.
If a state or local law in which your Bonchon Business is located prohibits or restricts in any way your ability to pay and our ability to collect the Continuing Royalty derived from the sale of alcoholic beverages at your Restaurant (an "Alcohol Restriction Law"), you will be required to pay whatever increased percentages of all Gross Revenues not deriving from the sale of alcohol are necessary so that the Continuing Royalty you pay equals the Continuing Royalty you would make if you were not subject to an Alcohol Restriction Law.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to pay a weekly Continuing Royalty equal to 5.0% of the previous week's Gross Revenues. This royalty is paid from the opening date of the Bonchon Business and continues through the end of the Initial Term of the Franchise Agreement. The Continuing Royalty is in exchange for the franchise granted by the agreement, not for specific goods or services provided by the franchisor.
Additionally, Bonchon franchisees must contribute to the System Brand Fund. This contribution is initially set at 2.0% of the restaurant's Gross Revenues, payable weekly. However, the System Brand Fund contribution may increase to a maximum of 3.0% of Gross Revenues with 60 days' prior written notice. These funds are used for marketing, advertising, and promoting the Bonchon brand.
Bonchon also charges a Technology Fee to cover costs associated with technology platforms used in Bonchon Restaurants. This fee can be adjusted with 60 days' prior written notice, and the structure may vary (percentage of sales, flat fee, or transaction-based fee), but it is subject to a maximum amount. The Technology Fee is due and payable at the same time as the Continuing Royalty, or as otherwise defined by the franchisor.
If a Bonchon franchisee is in material default of any provision of the Franchise Agreement (excluding defaults related to specific sections 17.01 or 17.02), the weekly Continuing Royalty rates will be tripled to 15.0% for each operating Bonchon Business. This increased rate applies from the date the franchisee receives written notice of the default until the default is cured. Furthermore, if a state or local law restricts the ability to collect royalties on alcohol sales, the franchisee will be required to pay increased percentages of Gross Revenues not derived from alcohol sales to ensure the Continuing Royalty equals what it would have been without the restriction.