Does the Bonchon franchisee have the ability to staff its Restaurant with as many employees as it desires at any time?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby irrevocably affirms, attests and covenants its understanding that in no fashion is Franchisee, or may Franchisee be deemed to be, Franchisor's employee (under any theory or definition of "employee" or "employment") and that Franchisee's employees are employed exclusively by Franchisee and in no fashion is Franchisee or any such employee either employed, jointly employed or co-employed by Franchisor. Franchisee further affirms and attests that each of its employees is under the exclusive dominion and control of Franchisee and never under the direct or indirect control of Franchisor in any fashion whatsoever. 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. Franchisee further attests and affirms that any minimum staffing requirements established by Franchisor are solely for the purpose of ensuring that Franchisee's Restaurant is at all times staffed at those levels necessary to operate Franchisee's Restaurant in conformity with the Bonchon System and the products, services, standards of quality and efficiency, and other Bonchon brand attributes known to and desired by the consuming public and associated with the Proprietary Marks. Franchisee affirms, warrants and understands that it may staff its Restaurant with as many employees as it desires at any time so long as Franchisor's minimal staffing levels are achieved. Franchisee also affirms and attests that any recommendations
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee has the authority to staff their restaurant with as many employees as they want, provided they meet Bonchon's minimum staffing requirements. Bonchon establishes these minimum staffing levels to ensure the restaurant operates in accordance with the Bonchon system, maintaining the quality, efficiency, and brand attributes expected by customers.
This means that while Bonchon sets a floor for staffing to maintain brand standards, the franchisee has the flexibility to exceed those levels based on their business needs. The franchisee is considered the sole employer of their staff, responsible for hiring, scheduling, compensation, and termination decisions. Bonchon does not have direct or indirect control over the franchisee's employees.
This arrangement is typical in franchising, where the franchisee manages day-to-day operations, including staffing, while adhering to the franchisor's standards. The franchisee's ability to hire additional staff beyond the minimum allows them to respond to peak business hours, provide enhanced customer service, or implement operational efficiencies as they see fit. However, the franchisee bears the financial responsibility for these staffing decisions, including salaries, benefits, and employment-related liabilities.
Prospective franchisees should carefully consider their staffing needs and labor costs when developing their business plan. While Bonchon's minimum staffing levels provide a baseline, franchisees should analyze their local market conditions and customer demand to determine the optimal staffing levels for their restaurant. Understanding the balance between labor costs and service quality is crucial for maximizing profitability and customer satisfaction.