Is the initial franchise fee for a single Bonchon Business refundable?

According to Bonchon's 2025 Franchise Disclosure Document, the initial franchise fee for a single Bonchon Business is not refundable. The standard initial franchise fee is $35,000, which must be paid in full when signing the Franchise Agreement. While some franchisees in 2024 may have qualified for a reduced initial franchise fee through a development incentive program, the FDD clearly states that no portion of the initial franchise fee is refundable. This means that once the fee is paid, it will not be returned to the franchisee under any circumstances.

This non-refundable policy is a fairly common practice in the franchise industry. Franchisors incur significant expenses in evaluating and onboarding new franchisees, and the initial fee helps to offset these costs. These expenses, as stated in the FDD, include developing and improving services, preparing the Disclosure Document, legal and accounting fees, screening franchisees, and general administrative expenses.

Prospective Bonchon franchisees should carefully consider this non-refundable aspect of the initial franchise fee. Before signing the Franchise Agreement and paying the $35,000 fee, candidates should conduct thorough due diligence, including reviewing the FDD, consulting with existing franchisees, and seeking professional advice. Understanding the terms and conditions of the franchise agreement is crucial, as the initial fee will not be returned even if the franchisee later decides not to proceed with opening a Bonchon Business.