What is the initial franchise fee for Bonchon businesses 11 and more in the Development Schedule?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
scription of the Initial Franchise Fee.
Your Initial Franchise Fee for each Bonchon Business you open pursuant to an Area Development Agreement (ADA) will be calculated according to the following schedule:
Business Initial Franchise Fee
Businesses 1-5 in Development Schedule $35,000 Businesses 6-10 in Development Schedule $30,000 Businesses 11 and more in Development Schedule $25,000
Franchisees who open Restaurants that qualify for our current development incentive program may benefit from certain incentives (see Item 5), one of which is that if you and we enter into an Area Development Agreement for three or more Restaurants on or before December 31, 2025 and open the Restaurant under the ADA no later than the Scheduled Opening Date listed in the Area Development Agreement, then for that ADA Restaurant we will reduce the Initial Franchise Fee to $20,000.
Franchisees that qualify for our United States Military Veteran Program will receive a $10,000 discount on the Initial Franchise Fee for the de
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT\ (FDD pages 24–37)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the initial franchise fee for businesses 11 and more in the Development Schedule is $25,000. This fee structure applies to franchisees who enter into an Area Development Agreement (ADA) to open multiple Bonchon restaurants. The initial franchise fee varies depending on the number of restaurants a franchisee commits to developing.
Specifically, the initial franchise fee is $35,000 for the first 5 businesses in the development schedule, $30,000 for businesses 6-10, and then decreases to $25,000 for businesses 11 and beyond. This tiered fee structure incentivizes franchisees to commit to developing a larger number of Bonchon restaurants within their designated territory.
Bonchon also offers a development incentive program where franchisees who sign an Area Development Agreement for three or more restaurants on or before December 31, 2025, and open the restaurants by the scheduled opening date, may qualify for a reduced initial franchise fee of $20,000 per restaurant. Additionally, qualified United States Military Veterans receive a $10,000 discount on the initial franchise fee for their first Bonchon business.
It is important to note that the Area Development Fee, which includes the initial franchise fee for the first restaurant and a deposit fee for subsequent restaurants, is fully earned when paid and is non-refundable under any circumstances. Prospective franchisees should carefully consider their development plans and financial capabilities before entering into an Area Development Agreement with Bonchon.