Bonchon Franchise Cost, Profit, Failure Rate 2024

The Bonchon franchise is among the most popular and successful franchises in the food service industry. This international restaurant chain offers its customers a unique combination of Korean-style chicken wings, traditional Asian-inspired dishes, and American comfort foods.

As a franchisee, you will have access to all the tools and resources necessary for success, including initial training and ongoing support from headquarters.

Furthermore, when it comes to investing in a Bonchon franchise, many attractive features make it an appealing option: Franchise Fees, Profit Potential, Total Investment Costs, Training Requirements & Restrictions, Renewal Terms & Conditions, Return on Investment (ROI), and much more!

This article will explore all aspects of franchising with Bonchon to help you decide if it’s the right fit for your business.

Bonchon Franchise

About The Bonchon

A South Korea launched a global fast service restaurant which means “My Hometown” in Korean.

BonChon Restaurant’s enthusiasm and drive to provide the best and unique sauces to food lovers led him to spend years honing the recipes that loyal patrons now appreciate globally.

It has also increased throughout Asia since then. It now has over 140 network locations in over ten countries.

Bonchon Franchise History

Bonchon Franchise History

In Korea, “like you do” fried chicken can be found on almost every street, but Jinduk Seh has higher ambitions: he wants to offer his country’s favorite dish to the globe culinary enthusiasts.

Seh’s zeal for improving the fried chicken processing technique, which ensures a crispy texture on the exterior and juicy on the inside, exemplifies this dynamic.

After that, he spent two years perfecting the “addictive” sauce, which included a range of Korean flavors.

These two distinctive sauces are still made in Korea and sold at Bonchon stores all around the world.

Bonchon Franchise is currently a prominent global fried chicken brand, with over 300 locations in 98 cities across the globe – Bonchon is present in 13 countries.

Bonchon’s Global Kitchen in Busan manufactures and imports a variety of signature-crunchy double-fried chicken hand-glazed with our sauces.

We also have a wonderful selection of Korean fusion menu items made with high-quality ingredients.

Bonchon Menu

Customers at Bonchon Chicken Restaurants can choose from a variety of delectable menu items, which keeps them coming back for more:

  • Chips and fish
  • Calamari
  • Platter of Seafood
  • Chacpchae
  • Fries and Popper
  • Squid ink Crisps
  • Desserts and a variety of Korean beverages are available.
  • Bulgogi Noodles
  • Tacos de Mariscos

Bonchon Franchise Revenue & Profit

A Bonchon franchise owner makes $1,578,339 in sales per year on average. This figure is based on the average sales of 100 franchised stores in 2021.

Also, a Bonchon franchise owner makes $410,368 in profits per year on average. This figure corresponds to an EBITDA profit margin of 26%.

This is how calculated the profit figure for the Bonchon franchise:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1578339.00
Franchise Royalty Fees4.62%(72998.18)
Cost of Goods Sold (COGS)23.12%(364990.89)
Labor (Variable)12.02%(189795.26)
Total (Expenses)74.00%(1167970.86)
Net Profit26.00%410368.14

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Bonchon Franchise Model

Cost Or FeeAmount
Initial Investment$503,879-$1,099,004
Initial Franchise Fee$40,000  
Area RequirementN/A
Royalty Fee3.75%- 4.75%  
Total Outlets300

Failure Rate Of Bonchon Franchise

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2020, the growth rate was (6)/98×100≈6.12%
  • In 2021, the growth rate was (7)/104×100≈6.73%
  • In 2022, the growth rate was (6)/111×100≈5.40%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Company-Owned outlets:

  • In 2020, the failure rate was (0)/3×100≈0.00%
  • In 2021, the growth rate was (1)/3×100≈33.33%
  • In 2022, the growth rate was (1)/4×100≈25%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
  • In 2020, the growth rate was (6)/101×100≈5.94%
  • In 2021, the growth rate was (8)/107×100≈7.47%
  • In 2022, the growth rate was (7)/115×100≈6.08%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Bonchon grew from 2020 to 2022, showing a growth rate between 6.12% and 5.40%.

On the other hand, for company-owned outlets, the failure rate of Bonchon was in the range of 0.00%. However, the company managed to increase its outlets in the year 2021-2022, showing a growth rate between 33.33% and 25%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Bonchon franchise has expanded in the years 2020-2022, showing a total growth rate between 5.94% and 6.08%.

Payback Period Of Bonchon Franchise

With a total investment of $1,099,004 and a yearly profit of $410,368, we can calculate the payback period of Bonchon franchise.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Total Investment / Yearly Profit = $1,099,004 / $410,368 = 2.6 years

Based on these figures, it will take approximately 3 to pay back the initial investment for the Bonchon Franchise. This is an excellent payback period, meaning you just have to wait 2.6 to 3 years to recoup your investment.

Why Own The Bonchon Franchise?

  • Bonchon combines Korean-style chicken with an array of tasty Asian fusion dishes. Their featured menu includes Bibimbowl, Bingsu, and Chicken Bao, among other fusion Korean and Asian delicacies.
  • Bonchon’s brand is recognized worldwide, with operations in the United States, Bahrain, Kuwait, Cambodia, South Korea, Singapore, Thailand, and the Philippines, catering to local markets.

Who Meets The Requirements For A Bonchon Chicken Franchise?

The Bonchon Chicken Restaurant chain is continuously looking for people that have the following qualities:

  • A commitment to excellence
  • The desire to provide excellent service and sales results
  • Enthusiasm and a burning desire to create a Bonchon Chicken franchise
  • Financial ability to meet the company’s standards for establishing a franchise unit.

Opportunities abound for entrepreneurs in chicken franchising, including brands like  Slim ChickensChurch’s Chicken, and Bojangles Chicken franchise.

Bonchon Comparison

CompanyBonchonChurch’s Chicken
Founded In20021952
Initial Investment$503,879-$1,099,004$681,500 – $1,603,300
Franchise-Fee$40,000 $15,000
Total Outlet300 1,700
Annual Revenue$77 Million$1.2 Billion

Frequently Asked Questions 

Is Bonchon a franchise?

Bonchon specializes in Korean-style fried chicken and other signature Asian dishes, and it offers franchise opportunities.

How much does a Bonchon franchise cost?

The franchise fee for Bonchon is $40,000, and its cost of investment ranges from $503,879-$1,099,004.

Who is the owner of Bonchon?

Bonchon is a South Korean fried chicken franchise founded in 2002 by Jinduk Seh and his mentor Yangnyeom Kyung.

How many locations does Bonchon have?

Bonchon has over 370 locations, including Thailand, the Philippines, Singapore, Cambodia, Vietnam, and many other locations.

Where is Bonchon Headquartered?

The headquartered of the Bonchon is located in Dallas, Texas.

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