When is the Continuing Royalty fee for a Bonchon franchise payable?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| (1) Type of Fee | (2) Amount | (3) Due Date | (4) Remarks |
|---|---|---|---|
| Continuing Royalty | 5.0% of previous week's Gross Revenues after first twelve months of operations and continuing throughout | Payable weekly on Tuesday of the next week | "Gross Revenues" includes all revenues from the franchised Business. Fully defined in Franchise Agreement, Section 5.05. See Note 1 |
Source: Item 6 — OTHER FEES (FDD pages 13–24)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Continuing Royalty fee is payable weekly. Specifically, it is due on Tuesday of the following week, based on the previous week's Gross Revenues. The standard Continuing Royalty is 5.0% of the previous week's Gross Revenues after the first twelve months of operation. Gross Revenues include all revenues from the franchised Bonchon business, with a full definition provided in Section 5.05 of the Franchise Agreement.
Bonchon requires that all Continuing Royalty payments be made via electronic funds transfer or similar technology that they designate. The franchisee is responsible for covering all costs associated with these electronic transfers or technologies.
It's important to note that if a Bonchon franchisee is in default of any provision of the Franchise Agreement (excluding those defaults listed in Sections 17.01 or 17.02), the weekly Continuing Royalty rate will be tripled to 15.0%. This increased rate applies to each operating Bonchon business during the period starting from the date the franchisee receives written notice of default from Bonchon and ending when the default is fully resolved.