Bonchon Franchise Costs, Fees & Owner Salary (2023)









May 2, 2024



a franchise?


Bonchon, the globally recognized Korean Fried Chicken franchise, was established in 2002 in Busan, South Korea by founder Jinduk Seo. The franchise made its way to the United States in 2006 with the opening of its first location in New York City.

Bonchon is headquartered in Dallas, Texas, and began franchising in 2006, expanding its unique offering of Korean-style fried chicken and other Asian-inspired dishes to various markets around the world. It is renowned for its signature Korean fried chicken, which is known for its crispy texture and flavorful sauces.

The brand differentiates itself from competitors through its focus on traditional Korean cooking techniques and ingredients, offering a menu that extends beyond fried chicken to include a variety of pan-Asian dishes. This dedication to authenticity and quality has helped Bonchon establish a strong presence in the fast-casual dining sector.

How many



are there?

In 2022, there were
outlets in
the United
States, of which
are franchises, and
are corporate-owned.

What are the




Advertising fee

2.5% - 5%

Initial Franchise Fee ($35,000)

  • The Initial Franchise Fee for opening a single Bonchon Business is $35,000, payable in full upon signing the Franchise Agreement. This fee is non-refundable under any circumstances.

Continuing Royalty (5.0% of Gross Revenues)

  • After the first twelve months of operations, a royalty fee of 5.0% of the previous week's Gross Revenues is due. This continues throughout the remainder of the Initial Term. If there's a default on any provision of the Franchise Agreement, the royalty fee can increase to 15.0% of the previous week's Gross Revenues.

Advertising (2.0% to 5%of Gross Revenues)

  • Franchisees are required to contribute 2.0% of their Gross Revenues to the Brand Fund. This fund is used for creating and developing advertising, marketing, and promotional materials and programs.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a



It costs between
to start a

Considering an investment in a Bonchon franchise? It's essential to understand the financial commitment involved. The estimated initial investments vary depending on the type of restaurant model you're interested in:

  • Dine-In Restaurant: The total investment necessary to begin operation of a Bonchon Dine-In Restaurant ranges from $771,105 to $1,157,172.
  • Fast Casual Restaurant: For those looking to venture into a Fast Casual setup, the estimated initial investment ranges between $554,279 and $825,721.
  • Delivery and Carryout Only Restaurant: If you're considering this model, be prepared for an investment estimated to be between $467,279 and $691,171.
  • Remote Kitchen: For a more streamlined operation, the Remote Kitchen model requires an initial investment ranging from $202,557 to $369,312.

Below, we provide detailed breakdown tables for each of these restaurant models to give you a clearer picture of the costs involved.

Investment for a Bonchon Dine-In Restaurant

Type of Expenditure Amount
Initial Franchise Fee $35,000
Pre-Opening Training Expenses $6,321 - $19,711
Real Property $6,700 - $25,000
Construction and Leasehold Improvements $412,500 - $590,000
Equipment $125,000 - $193,000
Furniture and Fixtures $45,283 - $66,658
Smallwares and Small Appliances $25,671
Uniforms $1,553 - $1,752
Computer and Point of Sale System and Other Technology $20,000 - $30,000
Inventory to Begin Operating $10,962
Security Deposits, Utility Deposits, Business Licenses, and Other Prepaid Expenses $5,000 - $15,000
Professional Fees $4,500 - $6,000
Signs $8,200 - $15,003
Architect and Engineering Fees $29,800 - $33,000
Opening Advertising $5,000 - $10,000
Pre-Opening Labor $9,615 - $20,415
Additional Funds (Initial Period - 3 Months) $20,000 - $60,000
TOTAL $771,105 - $1,157,172

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.





to its



Here's a detailed look at what they offer to their franchisees:

Training Program: Bonchon offers a comprehensive training program that combines various learning methods, including internet-based, classroom, and on-site training at an approved restaurant.

Who Needs to Attend: At least two individuals must attend and successfully complete the initial training program. This includes the franchisee's Operating Principal and a full-time General Manager. Additionally, one other approved employee must undergo this training.

Training Content: The training program covers sales techniques, product orientation, accounting procedures, food preparation, and operations management.

Location and Duration: The training is provided at Bonchon's designated locations, which may include their headquarters.

Training Expenses: While Bonchon covers the direct training costs, such as instructors and materials, the franchisee is responsible for all indirect training costs.






Franchisees will not receive an exclusive territory. They may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands controlled by the franchisor.

However, franchisees are granted a designated location, known as the "Restaurant Location", in a specific protected territory referred to as the "Protected Territory". This territory is where they must operate their Bonchon Restaurant.

The Protected Territory is typically defined using a mapping system. Except in high-density population centers, the Protected Territory will consist of the area inside a circle whose center is at the Bonchon Restaurant Location, with a radius extending outward from the circle's center. The exact boundaries and size of this territory depend on the specific market area, including factors like population.

Can a



be run as

a passive


Bonchon emphasizes that the franchisee must personally supervise the operation of the franchised Business. However, there are provisions for the appointment of a "General Manager" who will have day-to-day management responsibility.

This General Manager, along with an assistant or kitchen manager, is expected to exercise on-premises supervision and actively participate in the direct operation of the Business. Both the General Manager and the assistant or kitchen manager must attend and successfully complete Bonchon's Initial Training Program.

Furthermore, if a franchisee is entering an agreement for the operation of their third Bonchon Business, they must designate an "Area Manager" to oversee the operations of each Bonchon Business. This Area Manager must also attend and complete the Initial Training Program.

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