Under what condition can the Bonchon initial franchise fee be reduced to $20,000?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
and more in Development Schedule $25,000
Franchisees who open Restaurants that qualify for our current development incentive program may benefit from certain incentives (see Item 5), one of which is that if you and we enter into an Area Development Agreement for three or more Restaurants on or before December 31, 2025 and open the Restaurant under the ADA no later than the Scheduled Opening Date listed in the Area Development Agreement, then for that ADA Restaurant we will re
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT\ (FDD pages 24–37)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees who meet specific requirements under the development incentive program may qualify for a reduced initial franchise fee of $20,000. To be eligible, a franchisee must enter into an Area Development Agreement (ADA) with Bonchon for three or more restaurants on or before December 31, 2025. Additionally, the restaurant must be opened under the ADA no later than the Scheduled Opening Date listed in the Area Development Agreement. If these conditions are met, the initial franchise fee for that ADA restaurant will be reduced to $20,000. This incentive is designed to encourage multi-unit development within a specified timeframe.
This development incentive program can significantly lower the initial investment for franchisees planning to open multiple Bonchon locations. The standard initial franchise fee is $35,000 for the first 5 businesses in the development schedule, $30,000 for businesses 6-10, and $25,000 for businesses 11 and more. By taking advantage of the incentive program, franchisees can save $5,000 to $15,000 per restaurant, depending on their development schedule. This reduction in the initial franchise fee can free up capital for other essential startup costs, such as real estate, construction, and equipment.
It is important for prospective Bonchon franchisees to carefully review the terms and conditions of the Area Development Agreement and the development incentive program. Franchisees should ensure they can meet the deadlines for signing the ADA and opening the restaurants to qualify for the reduced initial franchise fee. Failure to meet these deadlines could result in the loss of the incentive and the requirement to pay the standard initial franchise fee. Additionally, franchisees should consider the financial implications of committing to open multiple restaurants within a specified timeframe, including the costs of securing real estate, construction, and staffing.
Bonchon also offers a United States Military Veteran Program, which provides a $10,000 discount on the initial franchise fee for the development of the first Bonchon business. This discount is separate from the development incentive program and may be combined with other incentives, providing additional savings for eligible veterans. Franchisees should inquire about all available incentive programs and discounts to maximize their potential savings on the initial investment.