When is the initial franchise fee due to Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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Notes
- [1] If you sign an Area Development Agreement with us, then you will pay an Area Development Fee to us in full when you sign the Area Development Agreement. The Area Development Fee is equal to (i) the Initial Franchisee Fee for the first Bonchon Business that you will develop and (ii) a Deposit Fee of $10,000 for each subsequent Bonchon Business you wish to develop, and therefore varies depending on the number of Bonchon Businesses you agree to open within your Development Territory (as defined in the Area Development Agreement). The Area Development Fee is fully earned when paid and it is not refundable under any circumstances. The low end of the Area Development Fee is for the development of 2 Bonchon Businesses and the high end is for the development of 10 Bonchon Businesses (but this is not a maximum).
- [2] The estimate of professional fees in this chart is in addition to the professional fees that we estimate you will pay in connection with developing each Restaurant.
- [3] For each franchised Bonchon Business you will operate under the Area Development Agreement, you must make the additional initial investment described in the applicable Item 7 table above. The Area Development Deposit you pay for a Bonchon Business will be applied as a credit against the Initial Franchise Fee at the time the Franchise Agreement for that particular Business is signed. The amounts in the charts above in this Item 7 may change, depending upon when you begin operation of each of your Bonchon Businesses,
since costs of the items on the charts are likely to rise with the passage of time.
ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Required Purchases and Approved Suppliers
You must offer for sale in your Business all menu items and services we specify, and only those menu items and services we specify. You must purchase proprietary and other designated products (currently Bonchon logoed packaging items, logo-imprinted paper goods, cooking utensils, sweet sugar, brushes, and our proprietary sauces, seasonings and spice blends) from the source that we designate.
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 is due when signing either an Area Development Agreement or a Franchise Agreement. If a franchisee signs an Area Development Agreement (ADA), they must pay the Area Development Fee in full at the time of signing. This fee covers the Initial Franchise Fee for the first Bonchon restaurant and a Deposit Fee of $10,000 for each additional Bonchon restaurant the franchisee plans to develop within their designated territory.
For franchisees opening individual Bonchon restaurants under an ADA, the Area Development Deposit paid will be credited towards the Initial Franchise Fee when the Franchise Agreement for that specific restaurant is signed. The Initial Franchise Fee varies based on the number of restaurants in the development schedule: $35,000 for the first five restaurants, $30,000 for restaurants six through ten, and $25,000 for eleven or more restaurants.
Bonchon also offers incentives that could reduce the initial franchise fee. Franchisees who enter into an Area Development Agreement for three or more restaurants by December 31, 2025, and open those 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 restaurant. It is important to note that the Area Development Fee is fully earned upon payment and is non-refundable under any circumstances.