What transfer fee does Bonchon charge if a franchisee transfers their business, and is there an exception?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
t contract. | | | | s. | | | | You must arrange an inspection of the Bonchon Restaurant prior to |
| Provision | Section in Franchise Agreement* | Summary |
|---|---|---|
| the transfer and pay our On-site Inspection Upon Transfer Fee. Either you or the transferee must, at your/its expense, upgrade the Bonchon Restaurant to conform with then-current standards and specifications within the time we reasonably specify. t. You must pay us a transfer fee of $15,000 or such greater amount as is necessary to reimburse us for our reasonable costs and expenses associated with the application for transfer. Notwithstanding the foregoing, there will be no transfer fee if the assignee is a member of your immediate family. \nu. You must correct any existing deficiencies of the Restaurant of which we have notified you. (Subject to state law.) | ||
| n. Our right of first | Section 14.06 | We can match any offer for your Business. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee who transfers their business must pay a transfer fee. This fee is $15,000, but may be higher if Bonchon's reasonable costs and expenses associated with the transfer application exceed that amount.
In addition to the transfer fee, the franchisee or the transferee is responsible for upgrading the Bonchon Restaurant to meet the then-current standards and specifications within a reasonable timeframe specified by Bonchon. The franchisee must also correct any existing deficiencies of the restaurant that Bonchon has notified them about.
However, there is an exception to the transfer fee. Bonchon will not charge a transfer fee if the assignee is a member of the franchisee's immediate family. This could be a significant benefit for franchisees planning to pass their business on to family members.