For Bonchon's Regional Advertising cooperative, what are some of the approved uses for the funds collected?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The Regional Advertising Cooperative may expend its funds for any or all of the following purposes: (i) development of advertising ideas and concepts; (ii) development of market research and merchandising programs; (iii) preparation of advertising campaigns; (iv) development of promotional ideas and strategies; (v) preparation of collateral creative materials; (vi) preparation of advertisements; (vii) placing and paying for regional marketing and advertising; (viii) planning, negotiating, contracting and trafficking all media programs; (viii) employing advertising agencies to assist in these activities and securing other technical and professional advice in connection with the above; (x) other public relations; and, (xi) administration of the Cooperative, including legal and accounting services to administer the Cooperative. It will not be a requirement that expenditures made by a Regional Advertising Cooperative be proportionate to your contributions or those of any other franchisee. The Regional Advertising Cooperative funds will also cover all costs of administering, directing, preparing, placing and paying for advertising specific to the region. This includes: production and media; television, radio, video, audio, cable, magazine, newspaper, written materials, graphics, electronic media, and worldwide web/internet advertising campaigns; other advertising, marketing and public relations and promotional materials; point-of-purchase materials; advertising at sports events; sports team sponsorships, mailers, door hangers, freestanding inserts/coupons, brochures and sponsorships; celebrity endorsements; influencer marketing; social media programs on the internet; other activities that we believe in our sole judgment are appropriate to enhance, promote and/or protect the Bonchon Regional Advertising Cooperative area; and, engaging advertising agencies to assist in any or all of the above activities, including fees to have print, broadcast and/or internet advertising placed by an agency, and all other public relations and advertising agency fees.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Regional Advertising Cooperative can use its funds for various purposes related to advertising, marketing, and administration. These include developing advertising ideas and concepts, conducting market research, preparing advertising campaigns and creative materials, and placing and paying for regional marketing and advertising. Funds can also be allocated to planning, negotiating, and managing media programs, as well as employing advertising agencies and securing technical and professional advice.
Additionally, the cooperative can use funds for public relations activities and the administration of the cooperative, including legal and accounting services. The funds will cover all costs related to advertising specific to the region, such as production and media expenses for television, radio, print, electronic media, and internet advertising campaigns. Other approved uses include marketing and promotional materials, point-of-purchase materials, advertising at sports events, sponsorships, mailers, brochures, celebrity endorsements, influencer marketing, and social media programs.
Bonchon emphasizes that expenditures made by a Regional Advertising Cooperative do not need to be proportionate to any individual franchisee's contributions. The cooperative has broad discretion to determine the allocation of funds to enhance, promote, and protect the Bonchon Regional Advertising Cooperative area. This includes engaging advertising agencies for placing advertising and managing public relations.
Prospective franchisees should note that failure to make required payments to any Regional Advertising Cooperative constitutes a material breach of the Franchise Agreement, potentially leading to termination if not cured. This underscores the importance of understanding and budgeting for these advertising contributions.