If an assignee executes a new Bonchon Franchise Agreement, what fees are they required to pay?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
That the assignee executes a new Bonchon Franchise Agreement, and all other agreements required of new franchisees, in the form and on the terms and conditions we then offer to prospective franchisees, which terms and conditions may vary significantly from this Agreement.
The assignee will not be obligated to pay another Initial Franchise Fee under the new Agreement but will be required to pay our then-current fees for furnishing our Initial Training Program and/or Partner Training Program and any other services we are required to furnish under the new Agreement.
The term of the new Franchise Agreement will be equal to the balance of the term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, an assignee who executes a new Bonchon Franchise Agreement will not be required to pay another Initial Franchise Fee. However, the assignee will be required to pay the then-current fees for the Initial Training Program, the Partner Training Program, and any other services that Bonchon is required to furnish under the new agreement.
This means that while the assignee avoids the upfront cost of the initial franchise fee, they must still cover the costs associated with training and any other services Bonchon provides as part of the new agreement. These fees can vary, as they are based on Bonchon's then-current rates for these programs and services at the time the new agreement is executed.
Prospective franchisees should note that the terms and conditions of the new Bonchon Franchise Agreement may differ significantly from the original agreement. The term of the new Franchise Agreement will be equal to the balance of the term of the original agreement. It is important for assignees to carefully review the new agreement to understand all applicable fees and obligations.