What is the initial franchise fee for the first five Bonchon businesses in a Development Schedule?

According to Bonchon's 2025 Franchise Disclosure Document, the initial franchise fee for the first five Bonchon businesses in a Development Schedule is $35,000 per business. This fee is payable in full when the Franchise Agreement is signed. It is non-refundable under any circumstances and is considered fully earned by Bonchon upon payment, in exchange for their execution of the agreement.

This fee structure applies to franchisees who commit to developing multiple Bonchon locations under an Area Development Agreement. The Development Schedule outlines the timeline for executing leases and commencing operations for each Bonchon restaurant. Failing to meet these deadlines can result in a breach of the agreement and potential termination, leading to the loss of development rights and associated area development fees for undeveloped locations.

Bonchon also offers a 2025 Development Incentive Program for area developers who sign an area development agreement for a minimum of three restaurants on or before December 31, 2025. Under this program, the initial franchise fee is reduced to $20,000. To qualify, franchisees must open their restaurants by the scheduled opening dates and remain in full compliance with all agreements with Bonchon. This incentive program also affects the continuing royalty rate, reducing it to 2.5% of gross revenues for the first 12 months of operation before reverting to the standard 5.0%.

Prospective franchisees should carefully consider the Development Schedule and their ability to meet the required deadlines. They should also inquire about their eligibility for the 2025 Development Incentive Program, as it can significantly reduce the initial investment and royalty obligations during the first year of operation. Understanding these financial obligations and development requirements is crucial for success as a Bonchon franchisee.