What is Bonchon's obligation regarding providing franchisees with a statement of Bonchon System Brand Fund income and expenses?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon will prepare a statement detailing the Bonchon System Brand Fund's income and expenses within 60 days following the close of its fiscal year. This statement will not be audited. Upon request, a copy of this statement will be sent to the franchisee.

This means that Bonchon franchisees have the right to request and receive information about how the System Brand Fund is being managed and spent. The fund is supported by franchisee contributions, and this provision ensures transparency in how those funds are utilized for advertising and promotion.

It is important to note that the statement is not audited, which means it is prepared internally by Bonchon and not verified by an independent accounting firm. While this provides some level of accountability, franchisees may want to consider requesting additional information or clarification if they have concerns about the statement. Franchisees should be aware that Bonchon expects to expend most contributions to the Fund for advertising during the fiscal year when the contributions are made, and any remaining amount will be used in the future for the benefit of the franchisees and the System.