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Highlights of BonChon Chicken’s Item 19 Financial Performance Representations (2012 FDD)
- The franchisee will operate one or more BonChon fast-casual service restaurants, specializing in Korean-style fried chicken (twice-fried chicken glazed with either a mild, hot sauce or a soy garlic sauce).
- The total investment necessary to begin operation of one BonChon Business is from $330,010 to $555,010 (not including real property), including $48,100 that must be paid to the franchisor or its affiliate.
- The total investment necessary to begin operation as a franchisee under an Area Development Agreement is from $42,,000 to $75,000 (assuming, for the low end of the range, 4 and, for the high end of the range, 7 Businesses, although this is not a maximum), including $40,000 to $70,000 that must be paid to the franchisor or its affiliate.
Annual Sales of Company-Owned and Operated BonChon Chicken Restaurants
- The following is historic financial performance information concerning one BonChon Restaurant in New York owned and operated by the franchisor’s affiliate, BonChon USA, Inc., and one BonChon Restaurant in Massachusetts owned and operated by the franchisor’s president and chief executive officer Jinduk Seh (the “Company-Owned and Operated Restaurants”).
- Both Company-Owned and Operated Restaurants have been open and operating for a period of 1 year or more, and the information provided is for the twelve-month period from January 1, 2011 through December 31, 2011.
- The BonChon Restaurant owned and operated by Jinduk Seh was previously a franchised Restaurant.
- “Annual Sales” was calculated in the same manner as “Gross Sales” (as defined in the Franchise Agreement) would be calculated and on which your Royalty would be paid. These numbers do not reflect either gross or net profit.