What is the estimated range for Bonchon construction and leasehold improvements costs?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
truct and outfit your Bonchon Restaurant.
The estimates are based on our prototypical layouts of Restaurants constructed in Dallas, Texas. These figures are indicative of standard pricing in or near Dallas, Texas. The low end of our estimate assumes that you have leased space that previously operated as a restaurant and that you will convert to a Bonchon Restaurant making use of existing mechanical, electrical, and plumbing infrastructure, existing restrooms, kitchen flooring, wall coverings/finishes, light fixtures, kitchen plumbing fixtures, and walk-in cooler and freezer as per our prototypical layout. The high end of our estimate assumes you have obtained a site in the "vanilla box" stage for a restaurant, which refers to the interior condition of either a new or existing building or suite that has been prepped with heating/cooling with delivery systems appropriately sized for the regional climate, lighting electrical switches and outlets, 400amp electrical panel, lavatories, a finished ceiling, walls that are prepped for painting, plumbing to stub, 1.25 inch water line to the space and a concrete slab floor. These estimates are not inclusive of architect fees but do recognize other fees typically charged by licensed professionals (such as project managers, general contractors and licensed tradesman) who are contracted to install electrical, plumbing and HVAC (heating, ventilation and air conditioning). Landlords (except landlords of remote kitchen locations) may provide monetary allowances for materials or work, or rent credits during the time of construction, which can range anywhere from $0 to $100 per square foot. In 2024, the tenant improvement allowance: (i) was $0 for sites for Delivery and Carry Out Only Restaurants; (ii) ranged from $12,000 to $235,000 for sites for Fast Casual Restaurants; (iii) was $0 for sites for Dine-In Restaurants; and (iv) was $0 for sites for Remote Kitchen Restaurants. Your costs may be less or more than this estimate, depending upon where you are planning to open your franchise or if you receive the premises in any condition other than what is in the delivery descriptions above or if the premi
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 cost for construction and leasehold improvements is not explicitly detailed as a single line item. However, Item 7 provides an overview of the estimated initial investment, noting that costs can vary widely based on location, the condition of the premises, and specific build-out requirements. The document mentions potential landlord allowances, which can range from $0 to $100 per square foot, and tenant improvement allowances that varied in 2024. For Fast Casual Restaurants, these allowances ranged from $12,000 to $235,000. These allowances can offset some of the construction and leasehold improvement costs.
Bonchon franchisees should consider that the estimates provided are based on prototypical layouts in Dallas, Texas, and costs may differ significantly in other regions. The low-end estimates assume the space was previously a restaurant, while the high-end estimates assume a vanilla box build-out. The FDD also specifies that franchisees must use Bonchon's designated Architect of Record (AOR) and Approved General Contractor (AGC), incurring additional architect and engineering fees. While the FDD includes Architect and General Contractor Evaluation Fees of $2,500 and $3,500 respectively in its estimate of architect and engineering fees, these are only applicable if a franchisee wishes to use an alternative architect or general contractor.
Prospective Bonchon franchisees should carefully evaluate local real estate costs, potential landlord contributions, and the specific requirements for their chosen site to accurately estimate construction and leasehold improvement expenses. They should also factor in the costs associated with using Bonchon's designated AOR and AGC, as well as any potential modifications required to meet local regulations or Bonchon's standards. Understanding these variables is crucial for developing a realistic budget for opening a Bonchon franchise.