Who is responsible for covering the costs, including shipping and insurance, for Bonchon merchandising materials?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, from time to time provide to you (or have our designated 3rd-party vendor provide to you) certain merchandising materials identifying the System and to support national promotions, such as menu panels, point of purchase advertising materials, System memorabilia and other brand-relevant merchandise. You will be required to pay the cost for these materials, including shipping and insurance.
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, franchisees are responsible for covering the costs associated with merchandising materials, including shipping and insurance. Bonchon may provide or have a designated third-party vendor provide merchandising materials that identify the Bonchon system and support national promotions. These materials can include menu panels, point-of-purchase advertising, system memorabilia, and other brand-relevant merchandise.
This means that if a Bonchon franchisee wants to utilize these merchandising materials, they will need to budget for not only the cost of the materials themselves but also the expenses related to shipping and insuring them. This is a standard practice in franchising, where franchisees often bear the costs of marketing and promotional materials to maintain brand consistency and support national campaigns.
Prospective franchisees should consider these costs when evaluating the overall investment required to open and operate a Bonchon franchise. It's important to factor in these ongoing expenses to accurately project profitability and manage cash flow. Franchisees should also inquire about the frequency and types of merchandising materials offered to better estimate these costs.