What is the weekly continuing royalty rate for a Bonchon restaurant under the 2025 Development Incentive Program for the first 12 months of operations?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
elopment Agreement, dated as of (the "Area Development Agreement"), between Bonchon Franchise LLC ("Franchisor") and | | ("Area Developer"). | This Rider is incorporated into the Area Development Agreement and is dated and effective as of the date of execution of the Area Development Agreement. In the event of any ambiguity or conflict between the terms of this Rider and the terms of the Area Development Agreement, the terms of this Rider shall control and prevail. All initial capitalized terms used but not defined in this Rider shall have the meanings given to those terms in the Area Development | | Agreement. | |
Background
Simultaneously with signing this Ri
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees participating in the 2025 Development Incentive Program will pay a reduced weekly continuing royalty fee for the first year of operations. Specifically, Bonchon area developers who sign an area development agreement for a minimum of three restaurants on or before December 31, 2025, and open their franchised restaurants by the scheduled opening dates, will benefit from this incentive.
Under this program, the weekly continuing royalty rate is 2.5% of the developer's previous week's gross revenues for the first full 12 months of operations. After this initial period, the weekly continuing royalty rate increases to 5.0% of the area developer's previous week's gross revenues for the remainder of the franchise agreement term.
This incentive is designed to support new Bonchon franchisees during their initial operating period, potentially easing the financial burden as they establish their business. However, to qualify for this reduced royalty rate, franchisees must adhere to specific conditions, including meeting the scheduled opening dates and maintaining full compliance with the area development agreement and all other agreements with Bonchon.