For Bonchon, what is the deadline for preparing the statement detailing the Bonchon System Brand Fund income and expenses?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Within 60 days following the close of our fiscal year, we will prepare (but not audit) a statement detailing Bonchon System Brand Fund income and expenses for the fiscal year just ended, a copy of which statement will be sent to you upon request.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon will prepare a statement detailing the Bonchon System Brand Fund's income and expenses within 60 days following the close of their fiscal year. This statement will not be audited. Franchisees can request a copy of this statement.
This means that Bonchon franchisees will receive an accounting of the Brand Fund's financial activity, allowing them to see how the money is being spent. The statement is prepared, but not audited, so there is no independent verification of the numbers.
It is typical in the franchise industry for franchisors to provide an annual report on the use of advertising funds. The specific timing can vary, but providing this information allows franchisees to understand how their contributions are being used to promote the brand. Franchisees should note that the statement is provided upon request, so they must take the initiative to ask for it.