For a Bonchon Delivery and Carryout Only Restaurant, when is the initial franchise fee of $35,000 due?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
scription of the Initial Franchise Fee.
Your Initial Franchise Fee for each Bonchon Business you open pursuant to an Area Development Agreement (ADA) will be calculated according to the following schedule:
Business Initial Franchise Fee
Businesses 1-5 in Development Schedule $35,000 Businesses 6-10 in Development Schedule $30,000 Businesses 11 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 reduce the Initial Franchise Fee to $20,000.
Franchisees that qualify for our United States Military Veteran Program will receive a $10,000 discount on the Initial Franchise Fee for the de
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, the initial franchise fee for a Bonchon Delivery and Carryout Only Restaurant is $35,000 for businesses 1-5 in the development schedule. The FDD does not specify when this fee is due. However, if you sign an Area Development Agreement with Bonchon, you will pay an Area Development Fee in full when you sign the Area Development Agreement. The Area Development Fee is equal to (i) the Initial Franchisee Fee for the first Bonchon Business that you will develop and (ii) a Deposit Fee of $10,000 for each subsequent Bonchon Business you wish to develop. The Area Development Fee is fully earned when paid and it is not refundable under any circumstances. The Area Development Deposit you pay for a Bonchon Business will be applied as a credit against the Initial Franchise Fee at the time the Franchise Agreement for that particular Business is signed.
Bonchon also offers incentives for franchisees who open Restaurants that qualify for their current development incentive program. If you and Bonchon 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 Bonchon will reduce the Initial Franchise Fee to $20,000.
It is important to note that franchisees that qualify for Bonchon's United States Military Veteran Program will receive a $10,000 discount on the Initial Franchise Fee for the development of their first Bonchon Business. Prospective franchisees should clarify with the franchisor the specific payment schedule and conditions for the initial franchise fee to fully understand their financial obligations.