How must Continuing Royalty and System Brand Fund Contribution payments be made to Bonchon?

According to Bonchon's 2025 Franchise Disclosure Document, all Continuing Royalty and System Brand Fund Contribution payments must be made via electronic funds transfer or similar technology that Bonchon designates. The franchisee is responsible for covering all costs associated with these electronic transfers or other designated technologies. This requirement ensures that Bonchon receives payments promptly and securely, while also providing a standardized method for all franchisees.

This payment method is fairly standard in the franchise industry, as electronic transfers offer efficiency and reduce the risk of lost or delayed payments. Franchisees should factor in any potential bank fees or charges associated with electronic transfers when budgeting for ongoing operational costs. It is important for prospective franchisees to understand and comply with Bonchon's specified payment methods to avoid any late payment penalties or potential breaches of the franchise agreement.

By mandating electronic funds transfer, Bonchon aims to streamline its financial operations and maintain consistent payment practices across its franchise network. Franchisees should ensure they have the necessary banking arrangements in place to facilitate these electronic payments and stay informed of any updates or changes to the designated technology for payment processing.