factual

Will Bonchon Businesses owned and operated by Bonchon or its affiliates within a Regional Advertising Cooperative's geographic area participate and contribute to the Cooperative?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

Bonchon Businesses that are owned and operated by us or an affiliate of ours and are within the geographic area of a Regional Advertising Cooperative will participate in and contribute to the Cooperative on the same basis as required of franchisee members of the Cooperative. All Regional Advertising Cooperatives will be governed by Bylaws in the form of Exhibit G, except as modified to conform with the laws of any specific jurisdiction.

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon Businesses owned and operated by Bonchon or its affiliates within a Regional Advertising Cooperative's geographic area will participate in and contribute to the Cooperative. These company-owned or affiliated Bonchon Businesses will contribute on the same basis as required of franchisee members.

This means that if Bonchon or its affiliates operate a Bonchon restaurant within the area covered by a Regional Advertising Cooperative, they will be subject to the same advertising contribution requirements as the franchisees in that region. This ensures that company-owned stores are equally invested in the cooperative advertising efforts.

The Regional Advertising Cooperatives are governed by Bylaws, which are in the form of Exhibit G, and may be modified to comply with local jurisdiction laws. Franchisees can request a copy of Exhibit G to understand the specific rules and guidelines governing the advertising cooperative.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.