Is Bonchon required to provide documentation of the costs of System Merchandise upon request?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
- E.
Within 60 days following the close of our fiscal year, we will prepare (but not audit) a statement detailing Bonchon System Brand Fund income and expenses for the fiscal year just ended, a copy of which statement will be sent to you upon request.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to the 2025 Bonchon Franchise Disclosure Document, Bonchon franchisees can request a statement detailing Bonchon System Brand Fund income and expenses for the fiscal year. This statement will be prepared (but not audited) within 60 days following the close of Bonchon's fiscal year.
However, the FDD excerpt does not explicitly state that Bonchon is required to provide documentation of the costs of system merchandise upon request. The document does outline that franchisees must purchase certain required non-proprietary products, Bonchon logoed packaging items, supplies, equipment, materials, and services from suppliers Bonchon designates in writing, suppliers the franchisee proposes and Bonchon approves, and/or in accordance with Bonchon's written specifications. Bonchon also reserves the right to earn a profit on the sale of proprietary products to franchisees.
Prospective franchisees should inquire directly with Bonchon about their policies on providing documentation for the costs of system merchandise. Understanding the cost structure and transparency in pricing is crucial for managing a franchise's finances effectively.