What is the initial franchise fee for a Bonchon franchise under the 2025 Development Incentive Program?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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| INCENTIVE PROGRAM | (this "Rider") supplements and amends that certain Area Development Agreement, dated as of (the "Area Development Agreement"), between Bonchon Franchise LLC ("Franchisor") and |
| ("Area Developer"). | This Rider is incorporated into the Area Development Agreement and is dated and effective as of the date of execution of the Area Development Agreement. In the event of any ambiguity or conflict between the terms of this Rider and the terms of the Area Development Agreement, the terms of this Rider shall control and prevail. All initial capitalized terms used but not defined in this Rider shall have the meanings given to those terms in the Area Development |
| Agreement. |
Background
Simultaneously with signing this Ri
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees who qualify for the 2025 Development Incentive Program will pay a reduced initial franchise fee of $20,000. This incentive is available to area developers who sign an area development agreement for a minimum of three restaurants on or before December 31, 2025. These restaurants must also open by their scheduled opening dates as outlined in the Area Development Agreement.
This reduced fee is part of an incentive program designed to encourage development. In addition to the reduced franchise fee, franchisees participating in the 2025 Development Incentive Program also benefit from a lower continuing royalty rate of 2.5% of gross revenues for the first twelve months of operation. After this initial period, the royalty rate increases to 5.0%.
To qualify for these incentives, Bonchon requires that the franchisee must be in full compliance with the Area Development Agreement and all other agreements with Bonchon and its affiliates. Furthermore, any affiliate franchisees must also be in full compliance with their respective franchise agreements and other agreements with Bonchon. These conditions ensure that only franchisees who are committed to fulfilling their obligations and maintaining good standing within the Bonchon system can benefit from the Development Incentive Program.
Prospective Bonchon franchisees should carefully review the terms and conditions of the 2025 Development Incentive Program and ensure they meet all eligibility requirements. They should also be aware of the scheduled opening dates for their restaurants and the importance of complying with all agreements to maintain their eligibility for the reduced initial franchise fee and royalty rate.