How much advance written notice will Bonchon provide before adjusting the Technology Fee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
existing software and technology platforms for Bonchon Restaurants and providing such upgraded or new technology to you. Such platforms may include, without limitation, restaurant operating systems, product and customer distribution channels, customer facing applications, customer mobile applications, online ordering apps, e-commerce and payment processing systems, supply chain systems for use by and for the benefit of Bonchon Restaurants or other upgraded or new software or hardware for the franchised Business. The Technology Fee may be adjusted (including the structure of the Technology Fee (e.g., percentage of sales, flat fee and/or transaction-based fee) at any time with sixty (60) days' prior written notice to you, and subject to the maximum amount stated above in this paragraph. The Technology Fee will be due and payable at the same time as the Continuing Royalty set forth in Section 0, or as otherwise defined by us.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon may adjust the Technology Fee, including its structure (percentage of sales, flat fee, or transaction-based fee), at any time. However, Bonchon must provide franchisees with sixty (60) days' prior written notice before making any such adjustments. The Technology Fee is used for maintaining and upgrading Bonchon's technology platforms, such as restaurant operating systems, customer applications, online ordering systems, and supply chain systems. The Technology Fee will be due at the same time as the Continuing Royalty.
This policy ensures that Bonchon franchisees have advance warning of any changes to the Technology Fee, allowing them to adjust their financial planning accordingly. The notice period gives franchisees time to understand the implications of the fee adjustment and to communicate any concerns to Bonchon. This is a fairly standard practice in franchising, as it promotes transparency and helps franchisees manage their costs effectively.
It is important for prospective Bonchon franchisees to understand that the Technology Fee is subject to change, and they should factor this into their financial projections. Franchisees should also pay close attention to any notices from Bonchon regarding changes to the Technology Fee and seek clarification if needed to fully understand the changes and their potential impact on their business.