How is the Initial Franchise Fee calculated for each Bonchon Business opened under an Area Development Agreement?
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 each Bonchon Business opened under an Area Development Agreement (ADA) varies based on the number of businesses in the development schedule. For the first five businesses, the fee is $35,000 per business. For businesses six through ten, the fee decreases to $30,000 per business. For the eleventh business and beyond, the fee is $25,000 per business.
Bonchon also offers a development incentive program. If a franchisee enters into an Area Development Agreement for three or more restaurants on or before December 31, 2025, and opens the restaurants by the scheduled opening date in the ADA, the initial franchise fee is reduced to $20,000 for each restaurant under that agreement.
Additionally, Bonchon provides a discount for qualified United States Military Veterans. These veterans will receive a $10,000 discount on the initial franchise fee for the development of their first Bonchon Business. It is important to note that the Area Development Fee is fully earned when paid and is not refundable under any circumstances.