How does the Bonchon franchisor's assistance with pre-opening training in Item 11 relate to the franchisee's pre-opening training expenses listed in Item 7?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ssfully complete the Initial Training Program (and such additional training that we may require).
If the franchise agreement you are signing covers your first, second or third Bonchon Restaurant, then we will provide, at least three (3) trainers for six (6) days during the Restaurant's opening to assist in on-site training and provide operational support. While there is no fee for our opening training and assistance, you will be responsible for our lodging, transportation and food expenses.
Upon the opening of your fourth Restaurant, we will provide you with one trainer to assist and guide you in the opening of your Restaurant, so long as your first three Restaurants are still open and fully operational. You will be responsible for training your restaurant staff. While there is no fee for our opening training and assistance, you will be responsible for our Lodging, transportation and food expenses. We will schedule the opening training and assistance for your Restaurant upon your notice to us of your scheduled opening date. You will be responsible for the reimbursement of any and all change fees and/or penalties incurred by us if we must cancel or reschedule the opening training and assistance after your request.
You can request additional on-site training and/or assistance at any time. We will provide it at our option, but the franchise agreement does not require us to provide it. We may impose a fee for each day of additional on-site training or assistance we agree to provide. Currently, franchisees requesting additional on-site training and/or assistance must pay a fee of $50 per trainer per day, plus cover the costs of the trainings lodging transportation, and meals. The timing of all additional on- site and offsite advice, consultation and training (after the Initial Training Program or Partner Training Program) will be subject to the availability of our personnel.
We may from time to time conduct an annual conference, convention or training session. We will determine the duration, curriculum and location of these. You (if an individual) and/or your Operating Principal must attend each annual conference, convention or training session. We reserve the right to charge our then-current fees for such events.
You must pay all the expenses incurred by your trainees or attendees in connection with the Initial Training Program or Partner Training Program and any other training, conferences, conventions or other meetings your trainees attend, including, for example, their salaries, transportation costs, meals, lodging and other living expenses. (Franchise Agreement, Section 7.02)
Site Selection
You must select a Restaurant Location for your Dine-In, Fast Casual and/or Delivery and Takeout Only Restaurant and obtain our advance written approval for your Restaurant Location within 90 days after we sign your Franchise Agreement.
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Item 11 describes the pre-opening training assistance Bonchon provides, while Item 7 outlines the estimated expenses a franchisee will incur for that training. Bonchon provides at least three trainers for six days during the restaurant's opening to assist with on-site training and operational support for the first, second, or third Bonchon Restaurant. While there is no fee for this opening training and assistance, the franchisee is responsible for the trainers' lodging, transportation, and food expenses. For the opening of a fourth restaurant, Bonchon provides one trainer, assuming the first three restaurants are open and operational, and the franchisee remains responsible for training their restaurant staff and covering the trainer's expenses.
Item 7 clarifies that Bonchon provides the Initial Training Program for the franchisee (or Operating Principal), General Manager, Manager, and Area Manager at no charge. However, franchisees must cover all living and transportation expenses for their trainees. These expenses depend on the trainee's location, their ability to commute, and the class of accommodation chosen. The estimated costs in Item 7 cover the expenses for a fifteen-day Initial Training Program or Partner Training Program, as well as the on-site opening training assistance provided during the 12-14 days surrounding the restaurant opening.
In summary, Bonchon offers the training programs themselves without a direct fee, but the franchisee is responsible for all associated costs such as travel, lodging, and food for both their staff and Bonchon's trainers. This division of costs is a common arrangement in franchising, where the franchisor provides the expertise and training structure, while the franchisee covers the logistical expenses. A prospective franchisee should carefully consider these costs when evaluating the overall investment required to open a Bonchon restaurant.