What is the deadline to sign an area development agreement to qualify for the 2025 Development Incentive Program for Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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| INCENTIVE PROGRAM | (this "Rider") supplements and amends that certain Area Development Agreement, dated as of (the "Area Development Agreement"), between Bonchon Franchise LLC ("Franchisor") and |
| ("Area Developer"). | This Rider is incorporated into the Area Development Agreement and is dated and effective as of the date of execution of the Area Development Agreement. In the event of any ambiguity or conflict between the terms of this Rider and the terms of the Area Development Agreement, the terms of this Rider shall control and prevail. All initial capitalized terms used but not defined in this Rider shall have the meanings given to those terms in the Area Development |
| Agreement. |
Background
Simultaneously with signing this Ri
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, to qualify for the 2025 Development Incentive Program, area developers must sign an area development agreement for a minimum of three restaurants on or before December 31, 2025. This program provides incentives to developers who commit to opening multiple Bonchon locations within a specific timeframe.
Under this incentive program, qualified area developers who meet the December 31, 2025 deadline will benefit from reduced fees. Specifically, they will pay an initial franchise fee of $20,000 and a continuing royalty rate of 2.5% of their weekly gross revenues for the first 12 months of operation. After this initial period, the royalty rate will increase to 5.0%.
To maintain eligibility for these incentives, developers must also ensure that their franchised restaurants open no later than the scheduled opening dates outlined in Section 6.01 of their Area Development Agreement. This condition emphasizes the importance of adhering to the development schedule to fully capitalize on the benefits offered by the 2025 Development Incentive Program. This program is designed to encourage and support the rapid expansion of the Bonchon brand by attracting and rewarding committed area developers.