How is the Initial Franchise Fee calculated for each Bonchon Restaurant Business opened under an Area Development Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
following schedule:
| Business | Initial Franchise Fee |
|---|---|
| Businesses | $35,000 |
| 1-5 | |
| in | |
| Development | |
| Schedule | |
| Businesses | $30,000 |
| 6-10 | |
| in | |
| Development | |
| Schedule | |
| Businesses | $25,000 |
| 11 | |
| and | |
| more | |
| in | |
| Developmen |
Source: Item 5 — INITIAL FEES (FDD pages 12–13)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the initial franchise fee for each Bonchon Restaurant Business opened under an Area Development Agreement varies based on the number of restaurants in the development schedule. For the first 1-5 businesses in the development schedule, the initial franchise fee is $35,000. For businesses 6-10, the initial franchise fee decreases to $30,000. If the development schedule includes 11 or more businesses, the initial franchise fee is further reduced to $25,000 per restaurant.
This tiered fee structure incentivizes franchisees to commit to developing a larger number of Bonchon restaurants. By reducing the initial franchise fee for larger development agreements, Bonchon aims to encourage expansion and brand growth. This can be a significant benefit for franchisees looking to expand their portfolio within a specific territory.
Bonchon also offers a development incentive program for Area Development Agreements entered into by December 31, 2025, where the initial franchise fee is reduced to $20,000. This is applicable if the restaurant opens by the Scheduled Opening Date listed in the Area Development Agreement. This incentive, along with the tiered fee structure, can substantially lower the initial investment for franchisees committed to multi-unit development. Prospective franchisees should carefully consider the development schedule and potential incentives when negotiating their Area Development Agreement with Bonchon.
It's important to note that these fees are in addition to the Area Development Fee, which includes the initial franchise fee for the first Bonchon Business plus a $10,000 deposit for each subsequent restaurant. The Area Development Deposit is applied against the Initial Franchise Fee for each Bonchon Restaurant Business. Additionally, Bonchon offers a $10,000 discount on the Initial Franchise Fee for the development of their first Bonchon Business to qualified United States military veterans.