Is the Bonchon System Brand Fund considered a trust, and is Bonchon a fiduciary with respect to the Fund?

According to Bonchon's 2025 Franchise Disclosure Document, the Bonchon System Brand Fund is not a trust, and Bonchon is not a fiduciary with respect to the Fund. Bonchon or its designee will administer the Bonchon System Brand Fund. Bonchon has sole control over the advertising programs, including creative concepts, materials, and media used.

Bonchon states that the Fund is intended to further general public recognition and acceptance of the Proprietary Marks for the benefit of the Bonchon System. Bonchon does not have an obligation to make expenditures for franchisees that are equivalent or proportionate to their contributions, ensure that any particular franchisee benefits directly or pro rata from the placement of advertising, or ensure that any advertising impacts or penetrates a franchisee's Restaurant Location.

This means that while franchisees contribute to the Brand Fund, Bonchon has broad discretion in how the funds are spent, and there is no guarantee that a franchisee will see a direct benefit from the advertising. Franchisees should consider this when evaluating the costs and benefits of investing in a Bonchon franchise.