Besides the Advisor of Bonchon International's interest in Bonchon LLC, do any Bonchon officers own an interest in any other third-party approved suppliers?

According to Bonchon's 2025 Franchise Disclosure Document, none of Bonchon's officers owns an interest in any third-party approved suppliers. However, the Advisor of Bonchon International, one of Bonchon's parent companies, owns, indirectly, and together with members of his family, a forty-five percent interest in Bonchon LLC. Bonchon LLC is the approved supplier for proprietary and other designated products that franchisees are required to purchase.

This arrangement means that while Bonchon's direct officers do not have ownership in other approved suppliers, a key advisor to the parent company benefits financially from franchisee purchases through Bonchon LLC. This situation is important for prospective franchisees to consider, as it highlights a potential conflict of interest where a person related to Bonchon benefits directly from mandatory franchisee purchases.

It is typical in franchising for franchisors or their affiliates to have approved suppliers, and sometimes they may derive revenue from these relationships. However, transparency about these relationships is crucial. Bonchon discloses the ownership interest of the advisor in Bonchon LLC, allowing potential franchisees to assess whether this arrangement could affect pricing, quality, or service levels of the supplied products. Franchisees should monitor these aspects and discuss any concerns with Bonchon during their due diligence.