Is Bonchon responsible for hiring or firing the franchisee's employees?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
") and that Franchisee's employees are employed exclusively by Franchisee and in no fashion is Franchisee or any such employee either employed, jointly employed or co-employed by Franchisor. Franchisee further affirms and attests that each of its employees is under the exclusive dominion and control of Franchisee and never under the direct or indirect control of Franchisor in any fashion whatsoever. Franchisee alone hires each of its employees; sets their schedules; establishes their compensation rates; and, pays all salaries, benefits and employment-related liabilities (workers' compensation insurance premiums/payroll taxes/Social Security contributions/Affordable Care Act contributions/unemployment insurance premiums). Franchisee alone has the ability to discipline or terminate its employees to the exclusion of Franchisor, which has no such authority or ability.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon franchisees are solely responsible for all employment-related decisions within their franchise. Bonchon explicitly states that franchisees have the exclusive authority to hire employees, set schedules, determine compensation, and handle any disciplinary actions, including termination. This means that Bonchon does not have the power to hire or fire the franchisee's employees.
This arrangement establishes a clear independent contractor relationship between Bonchon and its franchisees. The franchisee is considered the sole employer of their staff, responsible for all employment-related liabilities such as workers' compensation, payroll taxes, Social Security contributions, Affordable Care Act contributions, and unemployment insurance premiums. The franchisee must communicate to all employees that they, not Bonchon, are their employer, and ensure that no employment-related documents reference Bonchon's name or marks.
Bonchon may set minimum staffing requirements to ensure that restaurants operate in accordance with the Bonchon system standards. However, these minimums do not imply control over the day-to-day operations or staffing decisions of the franchise. Franchisees can staff their restaurants with as many employees as they desire, provided they meet the minimum levels set by Bonchon. This allows franchisees flexibility in managing their workforce while maintaining the quality and service standards associated with the Bonchon brand.
Prospective franchisees should understand that they bear the full responsibility for managing their employees, including all associated costs and legal obligations. While Bonchon may provide training and guidelines, the franchisee has the final say in hiring, firing, and managing their staff. This independence offers franchisees significant control over their business but also requires them to handle all employment-related matters effectively.