What deductions from Gross Revenues are permitted for a Bonchon franchise, assuming they were initially included in the Gross Revenues calculation?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Revenues" means all revenues and income from any source that you directly or indirectly derive or receive from, through, by or on account of the operation of the franchised Business and/or Restaurant (including, without limitation, income related to take-outs, catering operations, digital and online sales including through third-party online ordering and/or delivery aggregators, special events and revenues and income from permitted non-restaurant operations conducted under or using the Marks), whether received in cash, in services, in kind, from barter and/or exchange (valued at the full retail value of the goods or services received), on credit (whether or not you ultimately receive payment on credit transactions), or otherwise. Gross Revenues specifically includes revenues and income you receive from the proceeds of any business interruption insurance policies and/or the sale of any promotional or premium items. You may deduct from Gross Revenues, to the extent that they have been included in your calculation of Gross Revenues, documented refunds, chargebacks, credits and allowances that you give in good faith to customers; proceeds from property damage or liability insurance; and proceeds from any civil forfeiture, condemnation, or seizure by government entities. You may also deduct from Gross Revenues all sales taxes or similar taxes which you legally charge to customers if you add the taxes when you charge the customers; send the tax payments to the appropriate tax authorities when due; furnish to us within 30 days of payment an official receipt for payment of the taxes or any other evidence that we reasonably consider acceptable; and, state in the weekly report required by Section 5.06 the amount of all these taxes and the payments to which they relate.
We may, from time to time, authorize certain other items to be excluded from Gross Revenues. Any such permission may be revoked or withdrawn at any time in writing by us in our business judgment. The following are included within the definition of Gross Revenues except as noted below:
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Gross Revenues encompass all income derived directly or indirectly from the operation of the franchised business, including take-outs, catering, digital sales, special events, and permitted non-restaurant operations. This includes income received in cash, services, or credit, as well as proceeds from business interruption insurance and the sale of promotional items.
However, the document specifies certain deductions that a Bonchon franchisee can make from Gross Revenues, provided these items were initially included in the Gross Revenues calculation. These deductions include documented refunds, chargebacks, credits, and allowances given in good faith to customers. Additionally, franchisees can deduct proceeds from property damage or liability insurance, as well as proceeds from any civil forfeiture, condemnation, or seizure by government entities.
Furthermore, Bonchon franchisees are permitted to deduct all sales taxes or similar taxes legally charged to customers, provided they meet specific conditions. These conditions include adding the taxes when charging customers, sending tax payments to the appropriate tax authorities when due, providing official receipts for tax payments within 30 days of payment, and stating the amount of these taxes and related payments in the weekly report. Bonchon may also authorize other items to be excluded from Gross Revenues, but this permission can be revoked at any time in writing.