What is the frequency of the System Brand Fund Contribution for a Bonchon franchisee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must contribute to our system a weekly System Brand Fund Contribution of up to 4% of your previous week's Gross Revenues. The required amount may change during the term of the Franchise Agreement, but in no event will be more than 4.0% of Gross Revenues. (Franchise Agreement,
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, franchisees are required to make System Brand Fund Contributions on a weekly basis. This contribution can be up to 4% of the previous week's gross revenues. While the specific amount may be subject to change during the term of the Franchise Agreement, it will not exceed 4.0% of gross revenues.
This weekly contribution is a significant aspect of the franchise agreement, as it directly impacts the franchisee's operating costs and profitability. Franchisees need to factor this ongoing expense into their financial projections and business plans. The funds collected are intended to support the Bonchon system through advertising and promotional activities.
It's important for prospective franchisees to understand that the franchisor has the authority to adjust the contribution rate, although it cannot exceed the stated maximum. Franchisees should also be aware of how these funds are utilized, as detailed in the FDD, to ensure they align with their expectations for brand support and marketing efforts. Understanding the specifics of the System Brand Fund Contribution is crucial for assessing the financial viability of a Bonchon franchise.