What fee must a Bonchon franchisee pay to relocate their restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not relocate the Restaurant without our previous written approval. You must pay us a Relocation Fee equal to 25% of our then-current Initial Franchise Fee, plus reimburse us for any reasonable costs we incur in considering your request, provided, however, you will not have to pay us a Relocation Fee or reimburse us for our costs in considering your request to relocate a Remote Kitchen Restaurant when such relocation occurs upon the natural expiration of the lease for your Restaurant Location. For the avoidance of doubt, you will be required to pay us a Relocation Fee and reimburse us for our costs in considering your request to relocate your Remote Kitchen Restaurant Location, if the lease for your Restaurant Location is terminated due to your default. We will grant approval if you are in compliance with the Franchise Agreement, you have paid all money owed to us and our affiliates, the proposed location meets our site selection criteria, and you comply with the lease requirements in the Franchise Agreement. We may, if we wish, inspect your proposed new location.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must obtain written approval from Bonchon to relocate their restaurant. If approved, the franchisee must pay a Relocation Fee equal to 25% of the then-current Initial Franchise Fee.
In addition to the Relocation Fee, the franchisee is responsible for reimbursing Bonchon for any reasonable costs incurred while considering the relocation request. However, there is an exception for Remote Kitchen Restaurants. If a Remote Kitchen Restaurant is relocating due to the natural expiration of its lease, the franchisee will not have to pay the Relocation Fee or reimburse Bonchon for associated costs.
It's important to note that this exception does not apply if the lease termination is due to the franchisee's default. In that case, the franchisee would still be required to pay the Relocation Fee and reimburse Bonchon for their costs. Bonchon's approval is contingent upon the franchisee's compliance with the Franchise Agreement, payment of all outstanding dues to Bonchon and its affiliates, the suitability of the proposed location based on Bonchon's site selection criteria, and adherence to the lease requirements outlined in the Franchise Agreement. Bonchon also reserves the right to inspect the proposed new location.
This policy ensures that Bonchon maintains control over its brand's locations and standards, while also providing some flexibility for Remote Kitchen Restaurants under specific circumstances. Franchisees should carefully consider these costs and requirements before deciding to relocate their Bonchon restaurant.