What are franchisees required to communicate to their employees regarding their employer in the Bonchon franchise system?

According to Bonchon's 2025 Franchise Disclosure Document, franchisees must inform their employees that the franchisee, not Bonchon, is their employer. This means the franchisee is responsible for all aspects of employment. Franchisees must also ensure that no payroll checks or other employment-related documents reference Bonchon's name or trademarks.

This requirement is intended to clearly establish that Bonchon franchisees are independent contractors and that no employment relationship exists between Bonchon and the franchisee's employees. This distinction is important for legal and liability reasons, particularly concerning insurance coverage, taxes, and other employment-related obligations. By ensuring employees understand who their employer is, Bonchon aims to avoid any potential claims or confusion about employment status.

This is a fairly standard practice in franchising, as franchisors generally want to avoid being considered the employer of the franchisee's staff. This arrangement helps to protect Bonchon from potential legal and financial liabilities related to the franchisee's employees. Franchisees should ensure they comply with this requirement to maintain a clear distinction between their business and the Bonchon franchise system.