Did Bonchon make any discretionary matching contributions to the Individual Retirement Account plan for its eligible employees during the years ended December 31, 2022, 2023, and 2024?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
s paid by the Ultimate Parent. For the years ended December 31, 2024, 2023 and 2022, the Company was charged $129,324, $130,036 and $119,154, respectively, in connection with this arrangement, which is included in "Selling, general and administrative expenses" in the accompanying statements of income and changes in member's equity. There were no amounts due to Ultimate Parent at December 31, 2024 and 2023.
**NOTE 7. FUNDS DESIGNATED FOR F
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the company offers a simple Individual Retirement Account plan for its eligible employees, allowing participants to contribute up to the limitations set by the Internal Revenue Code. Bonchon has the option to make discretionary matching contributions up to 3% of the employee's annual compensation. However, for the years ending December 31, 2022, 2023, and 2024, Bonchon did not make any discretionary matching contributions to the plan.
For a prospective franchisee, this information is relevant because it provides insight into Bonchon's employee benefits and compensation practices at the corporate level. While this doesn't directly impact the franchisee's own employee benefits, it can offer a sense of the company's overall approach to employee compensation and potential insights into the broader financial health and priorities of the organization.
It is important to note that this information pertains specifically to Bonchon's corporate employees and not to employees of franchised locations. Franchisees are responsible for establishing their own employee benefit plans and compensation packages, in compliance with applicable laws and regulations.