How Does the Bonchon Franchise Work?

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What Are Operating Procedures of Bonchon Franchise

Ever wondered how to become a part of the booming Korean fried chicken scene? Understanding the Bonchon franchise model is your first step to potentially owning a piece of this popular brand. Discover the key elements of their franchise system and see if this opportunity aligns with your entrepreneurial goals. Explore our comprehensive Bonchon Franchise Business Plan Template to map out your success.

What Is The Business Model Structure?

What defines the Bonchon business model?

The Bonchon business model is built around a fast-casual restaurant concept. At its core is the signature made-to-order, double-fried Korean chicken. This is complemented by a curated menu of Korean-fusion dishes. The aim is to deliver a premium, globally recognized brand experience.

A significant aspect of Bonchon franchising is its adaptable footprint. They offer various models, including traditional full-service dining, more streamlined fast-casual formats, and non-traditional locations like food courts and airports. This flexibility proved especially resilient, with off-premise sales accounting for over 55% of total revenue in 2024.

The model's consistency and quality across all franchise locations are underpinned by a unique, proprietary sauce base, notably the Soy Garlic and Spicy flavors, and a specific cooking method. These elements are fundamental to the Bonchon restaurant franchise details.

How does Bonchon generate revenue?

The primary revenue stream for a Bonchon franchise comes from direct food and beverage sales to customers. Their signature chicken wings, drums, and strips typically represent a substantial portion, around 60-65%, of total food sales as of early 2025.

Consumer demand and sales potential are evident in the financial performance. According to the 2024 Franchise Disclosure Document (FDD), the Average Unit Volume (AUV) for the top 50% of full-service Bonchon franchise locations reached $192 million.

Revenue is also boosted by a strong and growing off-premise business. This includes online ordering, partnerships with third-party delivery services, and catering. This segment experienced a 15% year-over-year growth in 2024, highlighting its importance to the overall financial health of the franchise.

For those considering the opportunity, understanding the full financial picture is important. The initial investment for a Bonchon franchise can range from approximately $190,924 to $1,158,501. This includes an initial franchise fee of $35,000. The ongoing fees consist of a 5.00% royalty fee and a 1.50% marketing fee. Prospective franchisees should also be aware of the net worth requirements, which typically fall between $500,000 and $1,500,000, with a minimum of $35,000 in liquid cash required.

The average annual revenue per unit is reported at approximately $1,628,081, with a median of $1,478,140. While the highest annual revenue recorded is $4,011,620, the lowest is $163,657, indicating a wide performance spectrum among units. For many franchisees, the breakeven point is typically around 24 months, with an investment payback estimated at 22 months.

The number of franchised units has seen steady growth, increasing from 104 in 2021 to 117 in 2023. This expansion is supported by a robust franchise training program designed to equip owners for success. If you're looking to delve deeper into the specifics, exploring What are the Pros and Cons of Owning a Bonchon Franchise? can provide further insights into the operational and financial aspects.

How Much Does A Bonchon Franchise Cost?

Understanding the financial commitment is a crucial first step when considering any franchise opportunity, and the Bonchon franchise is no exception. For aspiring entrepreneurs looking to own a piece of the popular Korean fried chicken brand, the investment range provides a clear picture of the capital required.

What is the total initial investment?

The estimated total Bonchon franchise investment to open a new restaurant ranges from $770,458 to $1,570,729. This broad spectrum accounts for various factors that influence startup costs. The initial franchise fee alone is $55,000. However, the most significant capital outlays are typically for leasehold improvements, which can range from $350,000 to $800,000, and kitchen equipment, estimated between $150,000 and $250,000. It's also vital to set aside funds for operating capital, with an estimated $40,000 to $70,000 needed for the first three to six months to cover initial operational expenses and any unforeseen costs.

What are the fees for a Bonchon franchise?

Beyond the initial investment, understanding the ongoing fees associated with the Bonchon business model is essential for financial planning. Franchisees are required to pay a royalty fee of 3.75% of gross revenue. This rate is notably lower than the quick-service restaurant (QSR) industry average, which typically falls between 5-6%, making the Bonchon franchise opportunity financially appealing. Additionally, a contribution of 2% of gross revenue is directed towards a national brand fund, supporting marketing and advertising efforts. This percentage has remained consistent. Franchisees also have a local marketing requirement, necessitating an additional 1% of gross revenue to be spent on local advertising initiatives.

For a detailed breakdown of these figures and to explore the full scope of the investment, you can refer to the How Much Does a Bonchon Franchise Cost? page.

Is Bonchon A Good Franchise To Own?

When considering any franchise opportunity, understanding the financial potential is paramount. The Bonchon franchise presents a compelling case for potential owners, particularly when examining its financial performance metrics. For the 2023 fiscal year, the system-wide Average Unit Volume (AUV) reached an impressive $157 million, a strong indicator of the brand's market penetration and customer draw. This figure, detailed in the 2024 Franchise Disclosure Document (FDD), suggests a robust revenue stream for well-operated locations.

What is the Bonchon franchise profitability?

Delving deeper into profitability, the financial performance representations within Item 19 of the FDD reveal that the median gross profit for company-owned restaurants stood at a substantial 672% in 2023. This is further supported by the fact that food and paper costs averaged around 328% of net sales, a manageable percentage within the fast-casual dining sector. The brand's sales-to-investment ratio is also noteworthy. With an average investment hovering around $11 million, the reported AUV of $157 million indicates a strong potential return on investment for operators who can effectively manage their business. For those interested in the specifics of earnings, understanding How Much Does a Bonchon Franchise Owner Make? is crucial for a complete picture.

What is the Bonchon franchise success rate?

The success of the Bonchon franchise is also evident in its consistent unit growth and remarkably low closure rate. In 2024, the brand saw its US presence expand by over 12%, with projections for similar growth in 2025. This steady expansion speaks volumes about the brand's appeal and operational viability. From 2021 to 2024, the rate of franchise terminations, non-renewals, or reacquisitions by the franchisor remained exceptionally low, averaging less than 2% of the total system size annually. This low churn rate is a strong positive signal for prospective franchisees. Furthermore, numerous Bonchon franchise owner testimonials frequently highlight the brand's dedicated customer base and strong unit economics as primary drivers of their ongoing success and ability to expand into multi-unit operations.

Operating Procedure To Begin The Bonchon Franchise Application Process

Embarking on the journey to own a Bonchon franchise begins with understanding the foundational requirements and the structured application process. This is a critical first step for any aspiring entrepreneur looking to enter the competitive Korean fried chicken market.

What are the initial Bonchon franchise requirements?

To be considered for a Bonchon franchise, prospective owners must meet specific financial benchmarks. As of 2025, this includes a minimum net worth of $1,000,000 and at least $500,000 in readily available liquid capital. Beyond finances, prior experience in business management is highly valued, particularly within the restaurant or food service sector. The franchise team also places a strong emphasis on candidates who have experience managing multi-unit operations, as this often indicates a capability for scaling and consistent performance.

The initial phase of the Bonchon franchise application process involves completing an inquiry form, typically found on the company's official franchising website. Following this submission, a franchise development representative will conduct a preliminary qualification call to assess your alignment with the Bonchon business model and requirements.

How to own a Bonchon franchise?

Once you've cleared the initial qualification call, the next step is to submit a formal, detailed application. This comprehensive document requires candidates to provide financial statements, a well-thought-out business plan, and authorization for a background check. This thorough review helps Bonchon assess the viability and commitment of potential franchisees.

Successful applicants will then be invited to a 'Discovery Day' at Bonchon's corporate headquarters. This event is designed to offer an in-depth look into the Bonchon Korean fried chicken franchise info, including operational procedures, marketing strategies, and the support systems provided to franchisees. It’s an opportunity to ask questions and gain a deeper understanding of the partnership.

The final stage involves a careful review and signing of the Franchise Agreement. This legally binding document outlines the terms and conditions of the franchise relationship. Upon signing and payment of the initial franchise fee, which is $35,000 according to the latest FDD data, you officially secure the Bonchon franchise licensing rights. The total initial investment can range from $190,924 to $1,158,501, with a required cash investment of at least $35,000.

For those exploring different avenues within the QSR space, it's always beneficial to understand the broader market. You might find it useful to look into What Are Some Alternatives to the Bonchon Franchise? to compare various opportunities.

Operating Procedure To Secure Bonchon Franchise Locations Available

How are territories and locations selected?

When you consider the Bonchon franchise, understanding territory and location selection is crucial. Bonchon provides franchisees with a protected territory, typically defined by a radius of 1-3 miles or a specific population count, such as 50,000 people. This is clearly outlined in the Bonchon franchise agreement. The corporate real estate team plays a significant role here, using advanced demographic and site-selection analytics. They focus on areas with high daytime populations, strong residential density, and median household incomes above $75,000 as of 2025. Franchisees collaborate directly with this team and approved local brokers to find the best spots. The ideal locations are usually end-cap or inline spaces ranging from 2,000 to 2,800 square feet, prioritizing high visibility.

What markets are targeted for expansion?

Bonchon is actively pursuing expansion, particularly looking for multi-unit developers. As of June 2025, key metropolitan areas across the Sun Belt, Midwest, and Pacific Northwest are targeted. The brand has identified over 200 prime territories for new Bonchon franchise locations. There's a strategic focus on states like Florida, Ohio, Tennessee, and Arizona for development in 2025-2026. Beyond traditional restaurant spaces, franchise opportunities Bonchon promotes also include non-traditional venues. This means you might find them on university campuses, military bases, and in major transportation hubs, which can offer more flexible and potentially lower-cost build-out options.

Understanding the financial commitment is a vital part of this process. To learn more about the investment involved, you can explore How Much Does a Bonchon Franchise Cost?

The Bonchon franchise system offers a structured approach to site selection, leveraging corporate expertise and data analytics to identify promising markets. This systematic process aims to equip franchisees with the best possible foundation for success within the Bonchon business model.

Operating Procedure to Complete the Bonchon Franchise Training Program

What does the initial training involve?

Embarking on the journey to own a Bonchon franchise involves a comprehensive training program designed to equip you with the essential skills for success. This mandatory program is structured to cover approximately 200 hours of instruction, typically spanning 4-5 weeks. The primary owner and up to two designated managers are required to complete this intensive training.

The training is strategically divided into two key components. Roughly 40 hours are dedicated to classroom instruction at Bonchon's corporate headquarters in Dallas, Texas. This segment focuses on the core business strategies and management principles. The remaining approximately 160 hours are hands-on, practical training conducted at a certified training restaurant. Here, you'll gain direct experience in daily operations.

The curriculum is thorough, covering all facets of the Bonchon business model. You'll delve into the proprietary double-frying cooking technique, which is central to their signature Korean fried chicken. Additionally, the training covers essential operational areas such as inventory management, mastering the point-of-sale system, and effective local store marketing execution. Understanding these elements is crucial for replicating the Bonchon franchise success rate.

Is there ongoing support after opening?

Absolutely. Bonchon offers robust ongoing support to its franchisees to ensure continued growth and operational excellence. Upon opening your Bonchon restaurant franchise, you will be assigned a dedicated Franchise Business Consultant. This consultant will conduct regular site visits, at least quarterly, to provide assistance with operational efficiency and conduct profitability analysis.

Furthermore, franchisees benefit from continuous access to an updated online learning portal. This portal, refreshed in 2024, includes new modules covering menu innovations, best practices for delivery services, and effective employee retention strategies. This commitment to ongoing education is a cornerstone of the Bonchon franchising system.

Franchisees also receive support through system-wide marketing campaigns, which helps drive customer traffic. The franchisor also manages supply chain operations, securing negotiated pricing on key ingredients, which can significantly impact your Bonchon franchise cost. Annual franchisee conventions are also held, providing valuable opportunities for networking with other owners and engaging in continued education, reinforcing the collaborative nature of the Bonchon business model.

For those considering various franchise opportunities, understanding the commitment involved in the training program is a critical step. If you're evaluating different options, you might want to consider What Are Some Alternatives to the Bonchon Franchise?

Operating Procedure To Understand The Bonchon Franchise Agreement Explained

What is the term of the agreement?

When considering the Bonchon franchise, understanding the agreement's duration is crucial for long-term planning. The standard term for a Bonchon franchise agreement is 10 years. This aligns with typical terms found in the fast-casual restaurant sector, providing a solid foundation for your investment.

For franchisees who maintain good standing, there's an option to renew the agreement. This renewal is for an additional 10-year term. As of 2025, the renewal process involves paying a renewal fee, which is set at 25% of the then-current initial franchise fee, and signing the most recent version of the franchise agreement. This ensures continued operation under the latest brand standards.

What are the key operational restrictions?

To maintain brand consistency and quality control across all locations, the Bonchon franchise agreement outlines specific operational restrictions. Franchisees are mandated to exclusively source all food products, paper goods, and proprietary sauces from Bonchon's approved suppliers. This ensures that every customer receives the signature taste and quality they expect.

Furthermore, strict adherence to the Bonchon Operations Manual is required. This comprehensive guide covers every aspect of running the restaurant, from precise cooking procedures and customer service standards to store cleanliness and employee attire. Compliance ensures a uniform brand experience.

A significant clause within the Bonchon franchise agreement explained in the FDD is the restriction against operating any other competing Korean fried chicken or Asian fusion concept within the franchisee's designated protected territory during the agreement's term. This protects the brand's market share and your investment.

Understanding these operational requirements is a vital step in assessing whether the Bonchon business model is the right fit for your entrepreneurial goals. For a deeper dive into what owning a franchise entails, consider exploring What are the Pros and Cons of Owning a Bonchon Franchise?

Operating Procedure to Maximize Bonchon Franchise Profitability

How can owners drive sales?

To maximize sales for your Bonchon franchise, focus on aggressively promoting and streamlining off-premise dining. As of 2025, this segment represents the fastest-growing area for many restaurants. This means optimizing your online ordering portals and actively running targeted promotions on third-party delivery apps to capture a wider customer base.

Leveraging your 1% local store marketing spend effectively is also crucial. For instance, sponsoring local sports teams or partnering with nearby businesses for catering can lead to a direct sales lift. In fact, participating locations have seen sales increases of 5-8%. This community engagement builds brand loyalty and drives foot traffic.

Furthermore, implementing a robust catering program can open up a significant new revenue stream. Targeting local offices and events can prove highly effective. In 2024, average catering orders were seen to exceed $450, demonstrating the potential profitability of this channel for your Bonchon restaurant franchise.

How can owners manage costs effectively?

Diligent management of food and labor costs is paramount, as these are typically the two largest variable expenses in a Bonchon business model. Top-performing franchisees consistently aim to keep food costs at or below 32% of revenue, while maintaining labor costs between 25-28%. This focus on cost control directly impacts your Bonchon franchise profitability.

Utilizing the inventory and scheduling tools integrated within your approved Point-of-Sale (POS) system can yield significant savings. These tools can help reduce food waste by up to 2% and optimize labor scheduling, potentially saving 3-5% on payroll expenses. This efficiency is key to understanding how to own a Bonchon franchise successfully.

Ensure you participate in all national and regional supply chain programs negotiated by the franchisor. These programs are designed to secure the best possible pricing on key ingredients. By leveraging these, you can achieve potential savings of 4-7% compared to sourcing ingredients independently. This makes the Bonchon franchise investment more attractive.

Understanding the Bonchon franchise cost is the first step, with initial investments ranging from $190,924 to $1,158,501. The initial franchise fee is $35,000, and royalty fees are 5.00%, with a 1.50% marketing fee. The average annual revenue per unit is $1,628,081, with a median of $1,478,140. For those interested in how to start a Bonchon franchise in 7 steps: Checklist, it's vital to review all Bonchon restaurant franchise details and the Bonchon franchise agreement explained thoroughly. The Bonchon franchise success rate is supported by a growing number of franchised units, which increased from 104 in 2021 to 117 in 2023.