Is a Bonchon franchisee required to follow Franchisor's recommendations regarding salaries, hourly wages, or other compensation for employees?

According to Bonchon's 2025 Franchise Disclosure Document, franchisees are not required to follow the franchisor's recommendations regarding employee compensation. The FDD states that any recommendations from Bonchon regarding salaries, hourly wages, or other compensation are merely suggestions to assist the franchisee in efficiently operating their restaurant. Franchisees have the autonomy to disregard these recommendations.

This means that while Bonchon may offer guidance on employee compensation, the final decision on setting salaries and wages rests solely with the franchisee. This allows franchisees to tailor their compensation strategies to local market conditions and their specific business needs. It also underscores the franchisee's role as the exclusive employer of their staff.

Bonchon emphasizes that franchisees are exclusively responsible for hiring, scheduling, setting compensation rates, and handling all employment-related liabilities, including taxes and benefits. This reinforces the independent nature of the franchise relationship, where the franchisee maintains full control over their employees and their compensation. Franchisees must comply with all applicable wage, hour, and labor laws.

However, Bonchon does establish minimum staffing requirements to ensure that each restaurant operates in accordance with the Bonchon system and meets the brand's standards for quality and efficiency. While franchisees must meet these minimum staffing levels, they are free to employ as many additional staff as they deem necessary.