What is the deadline to enter into an Area Development Agreement with Bonchon to qualify for the 2025 development incentive program?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
are not refundable.
To incentivize franchisees to open Restaurants in 2025, we currently offer a development incentive program. If you and we enter into an Area Development Agreement ("ADA") for three or more Restaurants on or before December 31, 2025 and you open a Restaurant under your ADA no later than the Scheduled Opening Date listed in the Area Development Agreement (, then for that ADA
Restaurant we will reduce: (i) the Initial Franchise Fee to $20,000 and (ii) the weekly Continuing Royalty rate to 2.5% of your previous week's Gross Revenues for the first full 12 months of operations, after which the weekly Continuing Royalty rate will be 5.0% of your previous week's Gross Revenues. In order to receive the foregoing incentives, you and we will enter into a rider to (i) your Area Development Agreement and (ii) the Franchise Agreement for each Restaurant you commit to develop under your Area Development Agreement. The forms of each rider are attached to the Disclosure Document as Exhibit G-3 and Exhibi
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, to qualify for the 2025 development incentive program, franchisees must enter into an Area Development Agreement (ADA) for three or more restaurants on or before December 31, 2025. Additionally, the franchisee must open a restaurant under the ADA no later than the Scheduled Opening Date listed in the Area Development Agreement.
If these conditions are met, Bonchon will reduce the Initial Franchise Fee to $20,000 and the weekly Continuing Royalty rate to 2.5% of the previous week's Gross Revenues for the first full 12 months of operations. After this initial period, the weekly Continuing Royalty rate will then increase to 5.0% of the previous week's Gross Revenues.
To formalize the incentive, both the franchisee and Bonchon will enter into a rider to both the Area Development Agreement and the Franchise Agreement for each restaurant committed to be developed under the ADA. The forms for each rider are included in the Disclosure Document as Exhibit G-3 and Exhibit G-2, respectively. This incentive is designed to encourage the growth of the Bonchon brand by making it more financially attractive for franchisees to expand their operations within the specified timeframe.