Under what circumstances is the Initial Franchise Fee for a Bonchon franchise refundable?

According to Bonchon's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable under any circumstances. For a standard franchise agreement, the FDD states that the initial franchise fee is $35,000 and is not refundable in whole or in part. This fee is deemed fully earned upon payment in consideration of Bonchon's execution of the agreement, not in exchange for specific products, services, or assistance.

However, the FDD also mentions a 2025 Development Incentive Program, which may involve a reduced initial franchise fee of $20,000. Regardless of the reduced fee, the agreement explicitly states that this fee is also not refundable under any circumstances. This non-refundable nature is consistent with the standard agreement, emphasizing that the fee is earned upon Bonchon's execution of the agreement.

For area development agreements, the area development fee, which includes the initial franchise fee for the first Bonchon business plus a deposit for subsequent businesses, is also non-refundable. The document specifies that Bonchon will not refund the area development fee, in whole or in part, under any circumstance. This policy reflects Bonchon's view that it incurs administrative and other expenses and loses development opportunities by granting territorial rights to the franchisee.