According to the Bonchon franchise agreement, what is considered the 'Effective Date'?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
te its suitability. If you request that we visit the proposed Restaurant Location, the first visit will be free of cost, with any subsequent visits costing $500 per day plus the cost of our travel expenses.
It is of the essence of this Agreement that you select a Restaurant Location and obtain our advance written approval for your Restaurant Location within 90 days following the Effective Date of this Agreement and that you sign a lease approved by us (or provide proof of ownership or an executed contract of sale) for your Restaurant Location within 120 days following the Effective Date of this Agreement. If you will be operating a Remote Kitchen Restaurant, then you must select a Restaurant Location and obtain our advance written approval for your Restaurant Location within 60 days following the Effective Date of this Agreement and that you sign a lease approved by us (or provide proof of ownership or an executed contract of sale) for your Restaurant Location within 90 days following the Effective Date of this Agreement. If you do not secure a Restaurant Location within the time limits and following the procedures specified in this Section 6.01, then this failure will be a material and incurable breach of this Agreement which, unless we waive the breach, will entitle us to terminate this Agreement immediately upon notice to you, with no opportunity to cure. If we terminate the Agreement for this reason, then all funds you paid us will be considered earned by us; we will not refund to you any portion of the Initial Franchise Fee; and you shall immediately execute our then-current form of General Release running in favor of us and our affiliates.
In addition, if you and we cannot agree upon a Restaurant Location within 90 days following the Effective Date (or 60 days following the Effective Date, if you will be operating a Remote Kitchen Restaurant), then we can terminate this Agreement. If we elect to terminate this Agreement, then we will not refund any portion of the Initial Franchise Fee, and you shall immediately execute our thencurrent form of General Release running in favor of us and our affiliates. You will not be entitled to a refund of your Initial Franchise Fee.
You understand that any advice we furnish regarding site selection and our proposal, inspection and/or approval of any proposed site for your Restaurant Location will not constitute, and will not be deemed to constitute, our express or implied representation, warranty, guarantee or any other indication of the prospective profitability, viability or merit of the Restaurant Location.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the 'Effective Date' of the agreement is a critical starting point for several key deadlines and obligations for the franchisee. Specifically, the franchisee has 90 days following the Effective Date to select a Restaurant Location and secure Bonchon's written approval. If the franchisee is planning to operate a Remote Kitchen Restaurant, this timeline is shortened to 60 days.
Furthermore, the franchisee must sign a lease approved by Bonchon (or provide proof of ownership or an executed contract of sale) within 120 days of the Effective Date for a standard restaurant, or within 90 days for a Remote Kitchen Restaurant. Failure to secure a Restaurant Location within these timeframes can result in a material breach of the agreement, potentially leading to immediate termination by Bonchon, unless Bonchon waives the breach.
If Bonchon terminates the agreement due to the franchisee's failure to secure a location within the specified time, all funds paid to Bonchon are considered earned by Bonchon, and the franchisee will not receive a refund of any portion of the Initial Franchise Fee. The franchisee must also execute Bonchon's then-current form of General Release. Additionally, the franchisee is required to open their Bonchon Restaurant for business within 300 days after the Effective Date of the agreement, or by the Scheduled Opening Date specified in Exhibit A, whichever is earlier. For Remote Kitchen Restaurants, this period is 210 days.