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Bonchon

Bonchon specializes in Korean-style fried chicken and other signature Asian dishes. Our delicious and different kind of fried chicken has quickly attracted a very dedicated following. We look for hard-working individuals that share our passion to join our global expansion and success.

Facts & figures
Liquid capital required
$250,000
Net worth required
$700,000
Investment
$516,994 - $1,097,419
Franchise fee
$40,000
Royalty
3.75% - 4.75%
Offers Financing
Yes
Units in operation
376
Founded
2002
Franchising Since
2006
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CEO Introduction

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Jinduk Seh began his impressive career in the restaurant industry over 20 years ago. He started out managing a Korean oxtail soup restaurant where he developed an appreciation for satisfying his customers with good service and high quality ingredients. This led him to create Bonchon, a global fried chicken phenomenon with over 140 locations spanning across six countries.

Mr. Seh is passionate about food, and especially the unique fried chicken from his home country of South Korea.

When perfecting his recipe for fried chicken, he wanted to pay homage to his beginnings through Bonchon, which means “original village” in Korean. He started by refining the double frying method that makes Bonchon chicken extra crispy on the outside and moist on the inside. But still, Mr. Seh knew his chicken was missing a secret weapon, one that would set Bonchon apart from its competitors. He set out on two years of intense research, seeking sauces to embody the rich distinctive tastes that represented Korea’s unique palate. He found that soy and garlic encompassed the savory flavor of Korean cooking while spicy chilies brought the fiery Korean kick. The result was Bonchon’s original soy garlic and spicy sauce, which to this day is made in Korea and shipped worldwide. The success of Bonchon in his home country gave Mr. Seh the confidence to expand his business. He set his sights overseas, opening locations in Singapore, Thailand, Indonesia and the Philippines. The first location in the United States opened in Leonia, New Jersey in 2006. Customers waited in line for two hours and media outlets like CNN and The New York Times welcomed the arrival of Korean fried chicken to American shores. This was soon followed by locations in New York City and 23 others throughout the country.

As President and CEO, Mr. Seh overseas all Bonchon locations and is looking forward to expanding his brand even more. He follows the advice of Yogi Berra, who famously said, “It ain’t over till it’s over” saying, “To me, Yogi Berra’s words don’t simply mean that I won’t give up in difficult times, but rather that I’ll constantly move forward and won’t let things end.”

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About Bonchon

Based in the heart of New York City, Bonchon is a franchise specialized in Korean-style fried chicken and other signature Asian dishes. Our brand has traveled far and wide from Busan, South Korea, to become the internationally loved brand it is today. After running more than 20 Bonchon restaurants since 2002 in South Korea, founder Jinduk Seh traveled overseas in 2006 to open the first U.S. location in Leonia, New Jersey. Not long after that, Bonchon entered the heart of New York City and planted its headquarter store in the heart of Manhattan. Our delicious and different kind of fried chicken quickly attracted a very dedicated following. Word-of-mouth alone helped Bonchon expand throughout America in areas such as Massachusetts, Virginia, California, and Texas. Bonchon has risen to the level of global phenomenon with stores in the Philippines, Singapore, Indonesia, Thailand, Cambodia and soon to open in UAE, Bahrain and Vietnam.

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Our Menu

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Bonchon prides itself in the fact that all chicken is made to order, using the highest quality ingredients. Each piece of chicken is hand brushed with one of our signature sauces, Soy Garlic, for a deep flavor of soy sauce with a garlicky kick and Hot Sauce, made with fiery and spicy red chili peppers. Our sauces are made at the same factory in South Korea, so every customer experiences the same authentic taste, no matter where they are.

Why Bonchon?

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In addition to excellent food, Bonchon offers a variety of dining experiences: sports bar, traditional sit-down and quick service. The traditional sit-down restaurant provides a friendly, casual dining experience, perfect for gathering with family or friends. Our sports bar restaurants offer a full bar and televisions for broadcasting games. Quick servicerestaurantsserve Bonchon to customers looking for express-style dining. For the ultimate convenience, most of ours stores also offer take-out and delivery services.

Bonchon's Future

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1.Global Market

2. USA Market

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RequirementsUSA

Single Unit

Initial Franchise Fee: $35,000 Average Estimated Cost of Opening a Store: $333,010+ Royalty Fee: 3.50% - 4.75%

Area Development

Area Development Agreement Area Development Fee: $10,000 per store (i.e. 5 stores = $50,000)

Fees Per Store:

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*UndertheAreaDevelopmentAgreement,eachstorestillhasitsownFranchise Agreement.

Qualification: five or more units Franchisee gets exclusive rights to territory *Area Development fee is non-refundable

Total Franchise Fee:

****• Restaurant #1–2: $35,000 per store. • Restaurant #3-5: $25,000 per store. • Restaurant #6 and above: $20,000 per store.

Qualifications:

****• Ready to participate as the full-time or principal operator of the business. • Meets minimum investment requirements and demonstrates solid credit history. • No experience necessary, but previous restaurant, retail, management experience would be advantageous.

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Franchise Process

FAQ

What are the terms of the franchise agreement?

The franchise fee is a one-time payment of $35,000. The ongoing royalty fee will range from 3.5%- 4.75% of your Gross Revenue. Apart from the royalty fee, 2% of your Gross Revenue is also collected for advertising and marketing purposes. The term of the contract is 10 years with 2 options to renew for 5 years each.

What does the franchise fee cover?

The franchise fee earns you initial and on-site training, the right to use our signage and logos, site and layout assistance and approval, and interior design package, as well as a cooking manual and operations manual.

What does training involve?

Training will take place at our NYC headquarters and flagship store for about 4-6 weeks. You will work closely with a designated supervisor and headquarters staff. The training fee is included in the franchise fee. You will be responsible for lodging, travel, and other personal costs.

Does Bonchon Chicken offer financing?

We do not offer any financing assistance at the moment.

What are the site requirements?

For a full-service dine-in restaurant, we recommend a space around 2,000 SF up to 3,000 SF. We will provide you with a more detailed site criteria checklist before you begin your site selection.

Will Bonchon assist in site selection?

You will be responsible for finding a site for your restaurant based on the site criteria we provide you. After you have a list of acceptable spaces, we will accompany you to perform site review and approval.

What if I don’t have restaurant or business experience?

Prior experience is not required, but a highly qualified candidate will have a background of successful restaurant and/or management experience.

What is the franchising process like and how long will it take to open a store?

Please refer to [FRANCHISING PROCESS] to learn how to become a franchisee. The length of time required to a store depends on many different factors, such as construction and training.

How much will I make?

In Item 19 of our FDD, you find some financial performance representations and a list of our current franchisees. You are encouraged to use these as resources to do your own research to determine the potential performance of your restaurant.

Who will build my restaurant?

You will be responsible for the construction of your restaurant. However, we will assist you throughout the construction process with layouts and designs.

What kind of support does BonChon offer during the opening process?

We will send one of our supervisors to provide you with on-site training for 5-days around the opening date of your restaurant. They will be there to make sure your restaurant is set up and prepared to operate and will help you get it running.

How do I acquire equipment and inventory items?

We will provide you with a list of equipment and inventory items and specifications. You may choose your own vendors, but their products and service must meet our specifications and earn our approval. A few items you will purchase directly from us, we will provide you with a separate list of these items.

Can I add my own items to the menu?

You may only offer and sell items that are approved as part of our BonChon system.

Is pricing flexible?

We will work with you to determine the appropriate pricing for your restaurant. Final pricing must be approved by us.

Do you have a quality assurance program?

We conduct quality assurance by sending one of our supervisors to your restaurant a few times a year. They may arrive unannounced and spend the day observing your operations. At the end of the observation the supervisor will submit a report to headquarters. We will use this report to provide you with constructive feedback.

What proprietary items am I required to purchase from BonChon?

You are required to purchase our sauce, chicken, packaging materials and a few cooking tools from us.

How do I get a copy of your Franchise Disclosure Document?

You will receive an FDD after your first conversation with us following the submission of a complete application. [FRANCHISING PROCESS]

Do you provide territorial protection?

Our Agreement does not provide exclusive territorial rights.

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