Can the Bonchon System Brand Fund be used for influencer marketing?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The Fund may be used to meet any and all costs of administering, directing, preparing, placing and paying for national, regional or local advertising, including (without limitation): production and media; television, radio, cable, video, audio, magazine, newspaper, written materials, graphics, electronic media, and worldwide web/internet advertising campaigns; other advertising, marketing and public relations and promotional materials; point-of-purchase materials; consumer research, menu and promotion analytics tracking, interviews and related activities; the creation, maintenance and periodic modification of the Bonchon website; advertising at sports events; sports team sponsorships; mailers, door hangers, freestanding inserts/coupons, brochures and sponsorships; mystery shoppers (both for the Bonchon System and for competitive networks or units); celebrity endorsements; influencer marketing; reviewing any advertising material you propose to use (as provided below); search engine optimization; establishing a third party facility for customizing local advertising materials; accounting for Bonchon System Brand Fund receipts and expenditures; attendance at industry related conventions, shows or seminars; related retainers; association dues (including the International Franchise Association); social media programs on the
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Bonchon System Brand Fund can be used for influencer marketing. The document specifies that the Fund may be used to cover the costs of national, regional, or local advertising, marketing, and public relations, including influencer marketing. This indicates that Bonchon allocates resources from the Brand Fund to engage influencers to promote the brand.
As a Bonchon franchisee, you are required to contribute to the Bonchon System Brand Fund, with the current contribution being 1.5% of your prior week's Gross Revenues, although this can be increased to a maximum of 4.0%. These contributions are pooled with those of other franchisees to form the Fund, which Bonchon manages. While Bonchon has sole control over the advertising programs and how the Fund is spent, a portion of it can be directed towards influencer marketing campaigns.
It's important to note that Bonchon is not obligated to ensure that each franchisee benefits directly or proportionally from the advertising expenditures. The goal of the Fund is to enhance the general public recognition of the Bonchon brand. Franchisees can request an annual accounting of how the advertising funds are spent, providing some transparency into the Fund's activities. This use of the fund for influencer marketing is subject to Bonchon's discretion and business judgment.