Is Bonchon required to guarantee the success of my Restaurant at any Restaurant Location they approve?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not warrant or guarantee that your Restaurant will be successful at any Restaurant Location that we approve. Our approval only means that the Restaurant Location has met our minimum requirements for a Bonchon Restaurant.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 45–60)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon does not guarantee the success of a franchisee's restaurant, even if they approve the location. Bonchon will provide site selection criteria and a site evaluation form, and the franchisee must verify that their chosen site meets these criteria. The franchisee is required to use a Bonchon-approved real estate broker and submit various documents for evaluation of the proposed location.
Bonchon's approval of a location only indicates that the site meets the minimum requirements for a Bonchon Restaurant. This means that while Bonchon assesses the location based on its criteria, this assessment does not extend to a guarantee of financial success. The success of the restaurant will depend on various other factors, including the franchisee's management skills, local market conditions, competition, and overall economic factors.
This is a common practice in franchising; franchisors typically do not guarantee success, as it depends heavily on the franchisee's efforts and external market conditions. Prospective franchisees should conduct their own thorough market research and due diligence to assess the potential for success at any approved location. Understanding the local market, competition, and potential customer base is crucial for making an informed decision.