What employment-related liabilities is the Bonchon franchisee solely responsible for paying?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee alone hires each of its employees; sets their schedules; establishes their compensation rates; and, pays all salaries, benefits and employment-related liabilities (workers' compensation insurance premiums/payroll taxes/Social Security contributions/Affordable Care Act contributions/unemployment insurance premiums). Franchisee alone has the ability to discipline or terminate its employees to the exclusion of Franchisor, which has no such authority or ability.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the franchisee is the sole and exclusive employer of its employees and is responsible for all employment-related liabilities. This means Bonchon franchisees, not Bonchon itself, are responsible for managing and handling all aspects of employment for their staff.
Specifically, Bonchon franchisees are obligated to pay all salaries, benefits, and employment-related liabilities. These liabilities include workers' compensation insurance premiums, payroll taxes, Social Security contributions, Affordable Care Act contributions, and unemployment insurance premiums. This clarifies that franchisees must handle all financial responsibilities associated with employing individuals at their Bonchon franchise.
This arrangement is typical in franchising, as it establishes a clear distinction between the franchisor and franchisee as separate business entities. The franchisee has the autonomy to hire, schedule, compensate, and manage their employees, while also bearing the responsibility for all associated costs and legal requirements. This independence allows the franchisee to tailor their staffing to meet local market conditions and business needs, but also requires them to stay informed and compliant with all applicable employment laws and regulations.