What was the total operating lease expense for Bonchon for the year ended December 31, 2022?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
dit risk consist primarily of cash. The Company's cash is placed with a major financial institution. At times, amounts held with this financial institution may exceed federallyinsured limits. Management believes that this policy limits the Company
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the total operating lease expense for the year ended December 31, 2022, was $238,926. This figure reflects Bonchon's expenses for an office space in New York City. The lease for this office space expired on May 31, 2023, and was not renewed.
This information is relevant for prospective Bonchon franchisees as it provides insight into the company's operational costs related to office space. While franchisees typically handle the lease expenses for their restaurant locations, understanding Bonchon's corporate overhead can offer a broader view of the company's financial management. It's important to note that this particular lease expense was specific to an office space in New York City and is not directly indicative of the costs franchisees would incur for their restaurant locations.
Franchisees should focus on Item 7 of the FDD, which outlines the estimated initial investment, including real estate and leasehold improvement costs, for a Bonchon franchise. Additionally, franchisees should inquire about typical rent expenses in their target market during their due diligence process. Understanding these costs is crucial for assessing the financial viability of a Bonchon franchise location.