- What is the Bonchon?
- Is Bonchon a Franchise Opportunity?
- Bonchon Franchise Review and Information
- Bonchon Chicken Franchise Requirements
- How much does a Bonchon chicken franchise cost
- How much do Bonchon franchise owners make?
- Bonchon Training to Franchises
- Bonchon Operations to Franchises
- How is Bonchon Territory Granted to Franchises
- What is the Franchise Term of Agreement and Renewal?
- Does Bonchon provide Financial Assistance to Franchises?
- Pros & Cons of Buying a Bonchon Chicken Franchises
- What is Bonchon Franchise Owner Review
- Bonchon Rankings
- Franchise Deck Review and Overview
- Bonchon Franchise Success and Failure Rate
- Competition Analysis of Bonchon Franchises
- Conclusion: Should you buy the Bonchon franchise for Sale?
- Frequently Asked Questions (FAQs)
Bonchon located in the center of New York City specializes in Korean-style fried chicken and other unique Asian foods. From Busan, South Korea, the brand has gone far and wide to become the well-known brand it is today. Since 2002, the founder Jinduk Seh has operated more than 20 Bonchon restaurants in South Korea. In 2006, Jinduk Seh left the country to create the first facility in the United States in Leonia, New Jersey. Soon after, it made its way into Manhattan and established its headquarters there, in the center of New York City. Its unique and excellent kind of fried chicken gained a devoted following very soon. Its nationwide growth in states like Massachusetts, Virginia, California, and Texas was largely facilitated by word-of-mouth. Bonchon expanded globally with franchise locations in the Philippines, Singapore, Indonesia, Thailand, Cambodia, and shortly in the United Arab Emirates, Bahrain, and Vietnam, the company has become a global trend.
According to IBISWorld, the chicken franchise market size is $56.6 billion in the United States with a growth rate of 1.8% from 2013-2018. Cumulative Market growth for 2018 to 2023 is anticipated at 8.4%.
What is the Bonchon?
Bonchon is a huge Asian Chicken restaurant chain. The brand has established 347 locations, including 98 franchises in the USA. In 2002, the company opened its doors in South Korea. The restaurant immediately gained popularity with the help of its authentic, traditional Asian fried chicken served with homemade sauces.
The company has developed a business strategy that can accommodate demands of any scale. From a full-service restaurant with a full bar to its most recent Fast Casual style, which is suitable for use in all markets or even in malls with food courts. The brand has room to expand across the United States.
Is Bonchon a Franchise Opportunity?
Offering franchising opportunities, Bonchon specializes in Korean-style fried chicken and other distinctive Asian delicacies. It began franchising in the year 2010 as a result of its business expansion.
As a result, business expansion began in 2010 when the first Bonchon’s Korean fried chicken franchise was listed for sale. Fast Casual’s 2020 Top 100 Movers & Shakers recently listed the brand as one of the top 10 unique restaurants, which shows the success potential of the Bonchon Korean fried chicken.
Facts That Nobody Told You About Bonchon Chicken
- Bonchon is an award-winning, internationally recognized restaurant brand.
- Its famous, extra-crispy chicken is made with their signature sauces created only for Bonchon.
- Restaurants are Supported by their team with over 30+ years of experience.
- The brand has unlimited opportunities in the United States.
- The brand has strong customer appeal through its unique products.
Bonchon Franchise Review and Information |
|
| Industry Type | Food Franchise Opportunities |
| Sub Category | Chicken Franchise Opportunities |
| Year Established | 2002 |
| Company Name | Bonchon Franchise LLC |
| Founder/Management Head | Jinduk Seh |
| Franchising Started | 2006 |
| Employees at Company H.O | 49 |
| Franchise Expansion Plan | United States and worldwide |
| Number of Units | 390 |
| Number of Franchise Units | 114 |
| Social Media Handles | |
| Youtube | |
| Company Office location | 15660 Dallas Pkwy., #1150Dallas, TX 75248 |
Bonchon Chicken Franchise Requirements
The Bonchon Chicken restaurant is always looking for persons that fit the following criteria
- dedication to excellence
- the goal is to deliver superior service and sales performance
- passion and a deep desire to establish a Bon Chon Chicken franchise
- Financial capacity to construct a franchise unit in accordance with the requirements of the franchisor.
- The cost of investment ranges from $503,879 to $1,099,004 and the franchise fee is $40,000.
How much does a Bonchon chicken franchise cost
The cost of investment for Bonchon ranges from $503,879 to $1,099,004 and the franchise fee is $40,000.
How much does it cost to franchise a Bonchon in the United States?
A Bonchon chicken franchise requires a $40,000 initial license payment along with $503,879 to $1,099,004 as its cost to the franchise. This is the initial cost required to launch a Bonchon franchise in the United States.
| Bonchon Franchise Price and Costs | |
| Bonchon Franchise Fee | $40,000 |
| Bonchon Chicken Franchise Cost | $503,879 – $1,099,004 |
| Royalty Fee | 3.75%- 4.75% |
| Advertising Fee | 1% |
| Term of Agreement | 10 Years |
| Is franchise term renewable? | Yes |
| Renewable Franchise Fees | – |
How much do Bonchon franchise owners make?
In the year 2019, Bonchon franchise owners made around $1,192,142.76 as median gross revenue and $1,308,216.85 as average gross revenue whereas in the year 2020, the figures went up to $1,269,802.16 and $1,390,242.79 respectively.
What is Bonchon franchise profit?
I will estimate the franchise profit and years to recoup the investment (ROI).
| AUV | Estimated Annual Profit (12.5%) | Estimated Annual Profit (15%) | Estimated Annual Profit (18%) |
| $ 16,80,000 | $210,000 | $252,000 | $ 302,400 |
| Recoup mid-point$ 1,602,883 | 7.63 years | 6.36 years | 5.3 years |
The estimated Bonchon franchise profit is in the range of $ 210,000 to $ 302,400 and it will take 5 to 8 years to recoup the investment.
Bonchon Training to Franchises
Bon Chon provides the Initial Training Program for the franchises and their General Manager, along with the area franchise manager free of cost. If the franchise owner or its Operating Principal will not engage in the on-premises management of the Restaurant’s daily operations, then the franchise owner or its Operating Principal must attend and successfully complete either their Initial Training Program or their Partner Training Program, which the franchisor will also provide free of cost. All replacement Operating Principles, General Managers, Managers, and Area Managers the franchisee appoints later must also attend and successfully complete the company’s Initial Training Program or Partner Training Program, as applicable.
Bonchon Operations to Franchises
Upon the opening of the first, second, and third Restaurant franchise, the franchisor will send a minimum of 3 trainers to the Restaurant to provide on-site training and operational support for a period of 6 days during the Restaurant’s opening. After the opening of the third Restaurant, the franchisor will only send one trainer to assist and guide in the opening of any subsequent Restaurant.
How is Bonchon Territory Granted to Franchises
The franchisee will not receive an exclusive territory. It may face competition from other franchisees, from outlets that the company owns, or from other channels of distribution or competitive brands that it controls c. Franchisor will grant the franchisee a designated location in a specific protected territory within which the franchisee must operate its Bonchon Restaurant. The franchisee may operate its franchised Business from only one Restaurant Location within its Protected Territory which will consist of the area inside a circle whose center lies at the Restaurant Location and whose radius extends outward from the circle’s center.
What is the Franchise Term of Agreement and Renewal?
The term of the Agreement will commence on the effective date and expire 10 years from the day your Bonchon Restaurant commences operations.The franchisee can enter into two consecutive Successor Agreements for a term of five years each if they comply with the conditions for a Successor Term.
Does Bonchon provide Financial Assistance to Franchises?
With connections with outside sources, Bonchon Korean Fried Chicken can get financial assistance for beginning expenditures, equipment, and more.
Pros & Cons of Buying a Bonchon Chicken Franchises
Pros of owning a Bonchon Franchises
- Minimal start-up costs: Bonchon is one of the most affordable franchising options available if you’re thinking about starting your own business. In comparison to other franchises, the franchising fee for one store is only $40,000, a somewhat small amount.
- You don’t have to worry about beginning from zero when it comes to establishing your brand because the company has been around since 2002.
- Professional help is provided by the company because they want our franchise owners to be successful. They provide this support throughout setup and beyond. Additionally, they offer comprehensive store opening instructions, ongoing marketing counsel, and operational support.
Cons of Owning a Bonchon Franchises
- Depends on location: The location of your store will ultimately determine how successful it is, so do your homework before agreeing to any lease. Discover the level of local competition to determine whether there is enough demand for a second casual dining establishment.
- Time-consuming: Being a business owner requires a lot of devotion and hard hours, so be ready to put in the additional work required to keep your store operating effectively.
What is Bonchon Franchise Owner Review
The franchisee receives good support from corporate professionals who are familiar with their model and can provide direction if any problems arise. For individuals who are thinking of franchising for the first time, having this kind of support is quite beneficial.
The majority of customers claim that their Bonchon franchises have produced great financial results in addition to providing amazing customer service and chicken. Several business owners claim that within the first year of operation, their franchises become profitable. Not all franchise opportunities can make that claim!
Bonchon Rankings
According to their official website, Bonchon’s has been ranked 277 in entrepreneur franchise 500 and has been awarded for top 10 movers and shakers in ‘Fast casual magazine’ in the year 2020. Whereas in 2019, it was awarded for its best chicken wings by ‘Business Insider’.
Franchise Deck Review and Overview
Bonchon seems to be a successful company to operate if you’re considering franchising. When compared to other franchises within the US, its franchise fee is significantly more. This brand, however, can undoubtedly be a successful franchise business for you if you consider its profit and investment recovery.
Potential Risks to consider before investing in a Bonchon fried chicken
Certain states require that the following risk be highlighted
- Out-of-State Dispute Resolution. The franchise agreement and area development agreement require you to resolve disputes with the franchisor by litigation only in New York, New York. Out-of-state litigation may force you to accept a less favorable settlement for disputes. It may also cost more to litigate with the franchisor in the state, county, and judicial district in which the franchisor’s principal place of business is then located than in your own state.
Is the Bonchon Fried Chicken Profit Worth the Cost?
In contrast, when comparing the predicted revenues to the required investment, Bonchon is among the most profitable franchises. It takes only 5-8 years, on average, to recover your investment, which is really good.
Bonchon Franchise Success and Failure Rate
The below table will highlight the Bonchon success and failure rate for the last 3 years. This will supplement your decision-making process.
| Year | Format | Start | End | Change |
| 2019 | Franchise Owned | 83 | 98 | +15 |
| Company Owned | 3 | 3 | 0 | |
| 2020 | Franchise Owned | 98 | 104 | +6 |
| Company Owned | 3 | 3 | 0 | |
| 2021 | Franchise Owned | 104 | 111 | +7 |
| Company Owned | 3 | 4 | +1 |
Competition Analysis of Bonchon Franchises
| Bonchon | Cost to Franchise | Franchisee Fees | Royalty + Ad fees | Expected Profit | Recoup of Capital | FD Rating |
| Bonchon | $503,879 – $1,099,004 | $40,000 | 4.75%+1% | $1.74 million | 5-8 years | 4.3/5.0 |
| KFC Franchise | $1,440,600 – $3,163,550 | $45,000 | 4-5%+5% | – | 9-14 years | 4.0/5.0 |
| Chicken Guy Franchise | $622,500 – $1,288,000 | $20,000 | 6%+4% | – | – | 3.0/5.0 |
| Pluckers Franchise | $70,000 – $225,000 | $25,000 | 2-3%+1-2% | – | – | 3.0/5.0 |
| Golden chicken Franchise | $918,000 – $1,438,000 | $ 30,000 | 4%+3% | – | – | 3.7/5,0 |
| Halal Guy Franchise | $231,600-$834,000 | $60,000 | 6%+1% | $1.1 million | – | 3.8/5.0 |
The Franchise Deck rating for the Bonchon‘s franchise is 4.0/5.0.
Conclusion: Should you buy the Bonchon franchise for Sale?
The net profit margin for Bonchon restaurants is between 12 and 15%. In contrast to the $1,602,883 investment, we discovered that the payback period is only 5-8 years. This is a great payback period because it indicates that it will take, on average, 6 years for the company’s net profits to cover the initial investment. As a result, the Bonchon Chicken franchise is definitely a wise financial investment, review any lawsuit in the present or past.
Of course, choosing a franchise shouldn’t be restricted by your ability to generate a profit. Alternatively, you should also think about the eligibility requirements and the advantages and disadvantages that were previously discussed.
Entrepreneurs who want to open a franchise in the chicken franchise opportunities can look at:
- KFC Franchise
- Chicken Guy Franchise
- Pluckers Franchise
- Golden Chicken Franchise
- Halal Guy franchise
- Slim Chickens Franchise
- Raising Cane’s Franchise
- Slim Chickens Franchise
- Mission BBQ Franchise
- Underdog BBQ
- Pluckers Franchise
Frequently Asked Questions (FAQs)
- Is the Bonchon franchise profitable?
The net profit margin for franchise Bonchon’s restaurants is between 12 and 15%, in contrast to the $1,602,883 investment, which shows that it is highly profitable.
- Can you make money owning a Bonchon?
Yes, Bonchon offers you a great franchising opportunity and a chance to make a considerable amount of money.
- Is a Bonchon a franchise?
Yes, Bonchon is a franchising business. They started franchising in 2006.
- How much is a Bonchon franchise?
A Bonchon franchising has an initial fee of $40,000 and an initial investment of $503,879 – $1,099,004.
- How do Bonchon franchises make money?
Bonchon franchises make money by selling its chicken and other delicacies along with great customer service to people.
