Does Bonchon charge franchisees reasonable continuing inspection fees and administrative costs in connection with inspections?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
e complied with thereafter.
- Q. That you furnish us with a copy of any proposed contract of assignment (and any related agreements) and, promptly following execution, furnish to us a copy of the executed contract of assignment (and any related agreements).
- R. That
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are responsible for covering certain inspection-related fees. Specifically, when transferring ownership of a Bonchon restaurant, the franchisee must arrange for an inspection and pay an "On-Site Inspection Upon Transfer Fee." This fee is $250 per inspector per day, in addition to covering the costs of lodging, transportation, and food for the inspector.
This means that a Bonchon franchisee looking to sell their restaurant would need to factor in these inspection costs as part of the transfer process. The total expense will depend on the number of inspectors required and the duration of the inspection, plus travel-related expenses. This could potentially be a significant cost, especially if the inspection requires multiple days or involves travel to a distant location.
It is important to note that this inspection fee is specifically related to the transfer of a Bonchon restaurant. The FDD does not provide details on whether Bonchon charges inspection fees during the normal operation of the franchise, outside of a transfer situation. A prospective franchisee should clarify with Bonchon what other circumstances might trigger inspection fees and what those fees might be.