Are Bonchon businesses owned and operated by Bonchon or its affiliates required to contribute to the System Brand Fund?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 10.01.) All of our franchisees are required to contribute at the same rate except as prohibited by applicable law. Bonchon Businesses which we or our affiliates have or may in the future establish and operate may (but are not required to) contribute to the Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 45–60)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, all franchisees are generally required to contribute to the System Brand Fund at the same rate, unless prohibited by law. However, Bonchon businesses that Bonchon or its affiliates establish and operate may contribute to the fund, but they are not required to do so. This means that while franchisees must contribute to the System Brand Fund, corporate-owned locations have the option, but not the obligation, to contribute.
This policy could impact franchisees in several ways. If corporate-owned locations choose not to contribute, the financial burden of the System Brand Fund may fall more heavily on the franchisees. This could affect the amount of advertising and promotional activities Bonchon can undertake.
It is important for prospective franchisees to understand this policy and its potential implications. They may want to inquire about the number of corporate-owned locations, their contribution history to the System Brand Fund, and Bonchon's plans for future contributions from these locations. This information can help franchisees assess the financial stability and marketing support they can expect from the Bonchon franchise system.