When is the initial franchise fee for a Bonchon franchise payable?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
conditions to and procedures governing your right to a Successor Term are set forth in Article 13.
5. YOUR PAYMENTS TO US
5.01 Initial Franchise Fee
You agree to pay us an Initial Franchise Fee of $35,000. The Initial Franchise Fee is payable in full when you sign this Agreement; is not refundable in whole or in part under
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the initial franchise fee is payable in full when you sign the Franchise Agreement. The standard initial franchise fee is $35,000. However, this fee may be reduced to $20,000 if the franchisee qualifies for the 2025 Development Incentive Program.
For franchisees who sign an Area Development Agreement, which grants them the right to develop multiple Bonchon restaurants, the payment terms are similar. The Area Development Fee, which includes the initial franchise fee for the first restaurant plus a $10,000 deposit for each subsequent restaurant, is payable in full when the Area Development Agreement is signed. This fee is non-refundable.
It is important to note that the initial franchise fee is deemed fully earned by Bonchon upon payment and in consideration of their execution of the agreement. This means the fee is compensation for granting the franchise and is not tied to any specific products, services, or assistance provided by Bonchon.