When is the initial franchise fee due for a Bonchon fast casual restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
e not aware. We do not finance any fee.
[1] The amount included in the chart is for your first Restaurant. See Item 5 for a description 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.
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 the first restaurant is included in the chart in Item 7. Item 5 further describes the initial franchise fee. If you sign an Area Development Agreement with Bonchon, you must pay the Area Development Fee in full when you sign the Area Development Agreement.
The Area Development Fee is equal to the initial franchise fee for the first Bonchon business that you will develop, plus a deposit fee of $10,000 for each subsequent Bonchon business you wish to develop. Therefore, the Area Development Fee varies depending on the number of Bonchon businesses you agree to open within your Development Territory.
The Area Development Fee is fully earned when paid and is not refundable under any circumstances. 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.