How does Bonchon apply payments to outstanding obligations?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Type of Fee | (2) Amount | (3) Due Date | (4) Remarks |
|---|---|---|---|
| Application of | We can apply your payments to the | ||
| Funds | oldest obligation due. |
Source: Item 6 — OTHER FEES (FDD pages 13–24)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has the discretion to apply a franchisee's payments towards the oldest outstanding obligation. This means that if a franchisee has multiple outstanding debts to Bonchon, any payment made can be applied to the debt that has been outstanding for the longest period.
For a prospective Bonchon franchisee, this policy means it is important to stay current on all payments owed to Bonchon. If a franchisee falls behind on multiple obligations, Bonchon can choose to apply payments to the oldest debt, which may not be the franchisee's preferred approach. This could potentially leave more recent debts unpaid and lead to further complications or default notices.
This practice is relatively common in franchising, as it allows the franchisor to manage outstanding debts in a way that minimizes their risk. However, franchisees should maintain clear communication with Bonchon's accounting department to understand how their payments are being applied and to address any concerns proactively.