What was the reported revenue for 'Software' under 'Receipts' for Bonchon in 2023?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Revenues: | ||||
| Franchise fees and royalties | $ 9,666,499 | $ 10,010,547 | $ 9,449,000 | |
| Franchisee advertising fees | 3,349,877 | 2,922,845 | 2,256,071 | |
| Other income | 91,817 | 37,179 | 12,000 | |
| Total revenues | 13,108,193 | 12,970,571 | 11,717,071 | |
| Selling, general and administrative expenses | 12,243,769 | 12,368,496 | 10,213,043 | |
| Income from operations | 864,424 | 602,075 | 1,504,028 | |
| Other income (expense): | ||||
| Government assistance income | - | - | 558,647 | |
| Miscellaneous income (loss) | (38,456) | 24,957 | 21,193 | |
| Impairment loss on software | - | (48,311) | (63,854) | |
| Abandonment of project | (438,413) | - | - | |
| Other income (expense), net | (476,869) | (23,354) | 515,986 | |
| Net income | 387,555 | 578,721 | 2,020,014 | |
| Member's equity - beginning | 2,412,335 | 2,633,614 | 2,113,600 | |
| Member distributions | - | (800,000) | (1,500,000) | |
| MEMBER'S EQUITY - ENDING | $ 2,799,890 | $ 2,412,335 | $ 2,633,614 |
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, there is no specific revenue line item for 'Software' under 'Receipts'. However, there is a mention of 'Impairment loss on software' under 'Other income (expense)' in the Statement of Income. In 2023, Bonchon reported an impairment loss on software of $48,311. This indicates a write-down in the value of software assets, rather than direct revenue generated from software.
This impairment loss suggests that Bonchon may have reassessed the value of its software, leading to a reduction in its book value. This could be due to factors such as obsolescence, changes in technology, or a decline in the software's utility. It's important to note that this is an expense, not a revenue stream.
A prospective franchisee should inquire with Bonchon about the nature of this software, the reasons for the impairment loss, and any ongoing costs or fees associated with the software that franchisees may be required to use. Understanding the technology infrastructure and related expenses is crucial for assessing the overall profitability of a Bonchon franchise.