Are all Bonchon franchisees required to contribute to the System Brand Fund at the same rate?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 10.01.) All of our franchisees are required to contribute at the same rate except as prohibited by applicable law. Bonchon Businesses which we or our affiliates have or may in the future establish and operate may (but are not required to) contribute to the Fund.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 45–60)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, all franchisees are generally required to contribute to the System Brand Fund at the same rate. The standard contribution is up to 4% of the previous week's gross revenues. However, this requirement is subject to applicable laws, which may prohibit such uniformity in certain jurisdictions. Bonchon also retains the option, but not the obligation, to contribute to the fund for any Bonchon businesses that they or their affiliates operate.
This means that, as a prospective franchisee, you can generally expect to contribute up to 4% of your weekly gross revenue to the System Brand Fund. This fund is used for various advertising and promotional activities aimed at enhancing the Bonchon brand. However, it's important to be aware that legal restrictions in certain areas could alter this contribution rate.
Bonchon retains control over the advertising programs, including creative concepts, materials, and media placement. The funds are not held in trust, and Bonchon is not a fiduciary concerning the fund. This implies that while the fund is intended to benefit the entire Bonchon system, there is no guarantee that each franchisee will directly or proportionately benefit from the advertising expenditures. Franchisees should verify the specific contribution rate and any potential legal exceptions applicable to their location.