For Bonchon, what total revenue was generated from franchisee advertising fees in 2023?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Point in time: | |||
| Franchise fees and royalties | $9,250,473 | $9,190,258 | $8,490,100 |
| Franchisee advertising fees | 3,349,877 | 2,922,845 | 2,256,071 |
| Other income | 91,817 | 37,179 | 12,000 |
| Total | $12,692,167 | $12,150,282 | $10,758,171 |
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the total revenue generated from franchisee advertising fees in 2023 was $2,922,845. This figure represents the aggregate amount that Bonchon collected from its franchisees specifically for advertising purposes during that year.
Franchise advertising fees are commonly used to fund marketing and advertising initiatives aimed at promoting the brand and supporting franchisees' businesses. These fees are typically collected as a percentage of gross sales or as a fixed contribution. Bonchon uses these funds for various advertising activities, as detailed in the FDD, including media programs and engaging advertising agencies.
Prospective Bonchon franchisees should understand how these advertising fees are collected, managed, and utilized. Bonchon may spend these funds on preparing marketing materials, working with advertising agencies, conducting market research, and creating advertising campaigns. Franchisees have the right to request an annual accounting of how these advertising funds are spent, allowing them to monitor the effectiveness and transparency of Bonchon's advertising efforts. Understanding the allocation of these funds can help franchisees assess the value they receive from their contributions to the advertising fund.