What is the deadline to open a Bonchon restaurant under the Area Development Agreement to qualify for the reduced initial franchise fee of $20,000?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
and more in Development Schedule $25,000
Franchisees who open Restaurants that qualify for our current development incentive program may benefit from certain incentives (see Item 5), one of which is that if you and we enter into an Area Development Agreement for three or more Restaurants on or before December 31, 2025 and open the Restaurant under the ADA no later than the Scheduled Opening Date listed in the Area Development Agreement, then for that ADA Restaurant we will re
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT\ (FDD pages 24–37)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees who enter into an Area Development Agreement (ADA) for three or more restaurants on or before December 31, 2025, may qualify for a reduced initial franchise fee of $20,000 for each restaurant opened under the ADA. To qualify for this incentive, the restaurant must be opened no later than the Scheduled Opening Date listed in the Area Development Agreement.
This incentive program can significantly reduce the initial investment for franchisees planning to open multiple Bonchon locations. By securing an ADA before the end of 2025 and adhering to the agreed-upon opening schedule, franchisees can save $15,000 on the initial franchise fee for each restaurant, compared to the standard initial franchise fee of $35,000 for the first five restaurants under a development schedule.
It's important for prospective franchisees to carefully review the terms of the Area Development Agreement and ensure they can meet the Scheduled Opening Dates to take full advantage of the reduced franchise fee. Failure to open the restaurants by the agreed-upon dates could result in losing the incentive and paying the standard initial franchise fee.