What does the Pre-Installation Cancellation Charge for Bonchon cover?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer agrees that the Cancellation Charge is a reasonable measure of the administrative costs and other fees incurred by WIN to prepare for installation.
The Cancellation Charge set forth in this Section is in lieu of the charges set forth in 11(b).
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the cancellation charge is designed to cover the administrative costs and other fees incurred by WIN (presumably a third-party vendor) to prepare for installation. The customer agrees that this charge is a reasonable measure of these costs. This cancellation charge is implemented instead of the charges outlined in section 11(b) of the agreement.
For a prospective Bonchon franchisee, this means that if they cancel before installation, they will be responsible for covering WIN's administrative and preparation expenses. This is a standard practice in many franchise agreements, as the franchisor and its vendors incur costs in anticipation of the franchisee's opening.
It is important for a franchisee to understand the circumstances under which this cancellation charge would be applied and the potential amount. The FDD excerpt does not specify the exact amount of the cancellation charge, so a prospective franchisee should clarify this with Bonchon and WIN before signing any agreements.