Updated August 4, 2021.
Detailed Estimates of Bonchon Franchise Costs Based on Item 7 (Estimated Initial Investment) of Bonchon’s 2021 Franchise Disclosure Document
1. Initial Franchise Fee: $40,000
- The amount included in the chart is for your first Restaurant.
2. Pre-Opening Training Expenses: $6,500 to $15,000
- Bonchon provides the Initial Training Program for you (if the franchisee is an individual) and your Operating Principal (if the franchisee is an entity) and your General Manager, Assistant/Kitchen Manager, and Area Manager at no charge.
- If you or your Operating Principal will not be overseeing the management of the Restaurant’s daily operations on a full-time basis, then you must either attend and successfully complete Bonchon’s Initial Training Program or Partner Training Program, which Bonchon will also provide free of cost.
- If you replace your Operating Principal, General Manager, Assistant/Kitchen Manager, or Area Manager, then Bonchon may charge you a replacement training fee of up to $5,500 per training. The replacement training cost will not apply to any replacement Operating Principal, General Manager, Assistant/Kitchen Manager, or Area Manager who has already attended and successfully completed the Initial Training Program or the Partner Training Program (as applicable).
- You must pay all of your trainees’ living and transportation expenses.
- The range of cost covers the expenses for the trainees who will attend a fifteen day Initial Training Program or Partner Training Program and the expenses you will incur during the on-site opening training and assistance that Bonchon will provide during the six days surrounding the opening of your Restaurant..
3. Real Property: amount not specified
- If you do not have acceptable space for your Restaurant, you will have to lease at least 1,500 to 3,000 square feet in a suitable commercial building for Restaurant location.
- Bonchon Restaurant locations are usually at a strip shopping center or mall, and may be downtown, suburban, rural, or on a highway.
- Since real estate values vary dramatically from region to region, Bonchon cannot accurately estimate your rent, but monthly rental costs in Bonchon’s experience, nationwide, range from approximately $3,500 per month to $25,000 per month for a Restaurant Location.
4. Construction and Leasehold Improvements: $250,000 to $550,000
- Estimates are for the improvement of a property with 1,500 to 3,000 square feet of space, with a range of improvement costs of between $150.00 per square foot for the low estimate and $166.67 per square foot for the high estimate.
- These figures are indicative of standard pricing in or near New York, New York.
- The estimate applies to a site which has been obtained in the “vanilla box” stage.
5. Equipment: $49,000 to $120,000
- These figures represent the purchase of the kitchen production equipment, such as deep fryers, refrigeration, steel tables and work surfaces, gas ranges, and ice makers that are necessary to produce all menu items.
6. Furniture and Fixtures: $15,000 to $40,000
- The range of costs for Furniture and Fixtures covers the purchase of tables, chairs, and various items of decor that will be installed into a premise that has been designed to seat 35 to 100.
7. Hand Wares and Small Appliances: $6,000 to $13,000
- Hand wares are mechanical kitchen tools, small appliances, kitchen utensils, storage containers, and cleaning equipment, as well as other items that would not be considered on their own as major equipment purchases.
- This range of expenses also includes the cost of employee uniforms. You must purchase employee uniforms from Bonchon’s affiliate Bonchon LLC at an estimated cost ranging between $935 and $3,405. This cost range is included in the estimate above.
8. Computer and Point-of-Sale System and Other Technology: $15,000 to $25,000
- You must purchase the required computer hardware, software, Internet connections and service, required dedicated telephone and power lines, e-mail service, point of sale system, remote helpdesk service, secure payment service, back office equipment, credit card processor, credit card chip reader, digital menu boards, burglar alarm system, camera system, music and audio system, security firewall and networks, network cabling, and other computer-related accessories, peripherals and equipment (the “Computer and Point of Sale Systems and Other Technology”).
9. Inventory to Begin Operating: $32,754 to $35,754
- The initial inventory to open your business includes all food, cleaning products, and packaging necessary for the opening of the Restaurant.
- Additionally, each Restaurant will order packaging items, cooking utensils, sweet sugar, brushes, pallets, and Bonchon’s proprietary sauce that will cover sales during a period of no less than one month. You must purchase these items from Bonchon’s affiliate at an estimated cost of $15,754. This amount is included in the estimate.
10. Rent Deposit: $23,625 to $56,250
- The range of expenses assumes a prepayment of three months of rent, based upon a Restaurant location with between 1,500 and 3,000 square feet of interior space.
11. Security Deposits, Utility Deposits, Business Licenses, and Other Prepaid Expenses: $14,000 to $16,000
12. Professional Fees: $4,500 to $6,000
13. Signs: $7,000 to $20,000
- This is an estimate of the cost to produce signage (one building fascia sign) for the outside of the building as well as interior signage, such as a menu board.
14. Architect and Engineering Fees: $9,000 to $40,000
- Bonchon may designate an architect and general contractor whose services you will be required to use, at your own expense, for the development of your own Restaurant.
15. Opening Advertising: $5,000 to $10,000
- Bonchon will provide you with a New Restaurant Marketing Plan Program, which will contain your advertising and promotional obligations during the period beginning one month before the scheduled opening of the franchised Restaurant and continuing until three months following the commencement of operation of the franchised Business. This is the range of expenditures to satisfy the New Restaurant Marketing Plan Program.
- You must seek and obtain Bonchon’s written approval for any categories or materials you wish to use in advertising before you use them. You must also comply with Bonchon’s procedure for annual audit of local advertising expenditure.
16. Pre-Opening Labor: $9,615 to $20,415
- The estimate includes the expenses incurred in the training of hourly employees plus one General Manager and an Assistant/Kitchen Manager (including, an estimate of the salaries paid to the General Manager, Assistant/Kitchen Manager, and restaurant staff).
- The low range estimates that you will serve as the General Manager and not take a salary.
17. Additional Funds (initial period – 3 months): $30,000 to $90,000
18. Total (excluding real property): $520,494 to $1,122,419
- In compiling these estimates, Bonchon relied on its and its affiliates’ experience in operating and franchising businesses.