By what date must a Bonchon franchisee furnish copies of statements, invoices, and checks showing local advertising expenditures for the preceding year?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
On or before January 15th of each year during the term of this Agreement, and at any other times that we may require, you agree to furnish to us copies of all statements, invoices and checks issued during the preceding year showing that you have spent the required amounts for local advertising. You further agree to furnish to us an accurate accounting of all expenditures for local advertising and promotion in the previous calendar year, at the same time that you submit the annual financial statements required by Section 11.01 below.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees must furnish copies of statements, invoices, and checks showing local advertising expenditures for the preceding year on or before January 15th of each year. This obligation continues throughout the term of the Franchise Agreement. Franchisees may also be required to provide these documents at other times if requested by Bonchon.
In addition to providing the documentation, franchisees must also furnish an accurate accounting of all expenditures for local advertising and promotion in the previous calendar year. This accounting must be submitted at the same time as the annual financial statements required by Section 11.01 of the agreement.
This requirement ensures that Bonchon franchisees are adhering to the local advertising expenditure requirements outlined in the FDD. Franchisees are required to spend a certain amount on local advertising, and providing these documents allows Bonchon to verify compliance. This also allows Bonchon to maintain brand consistency and ensure that advertising efforts are aligned with their standards.