What actions against a Bonchon franchisee's assets, such as enforcement of security, execution, attachment, lien, levy, or distress, are considered events impacting the franchisee's ability to pay debts?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
execution is levied against you, any of the Bonchon Businesses or any Guarantor thereof or your property; the real or personal property of or any of the Bonchon Businesses or any Guarantor thereof is sold after levy thereon by any governmental body or agency, sheriff, marshal constable or other person authorized under federal, state and/or local law; a final court judgment against you remains unsatisfied or of record for thirty (30) days or longer (unless supersede as bond is filed); a judicial or non-judicial action to foreclose any lien or mortgage against any of your System Restaurant premises or equipment is instituted against you and is not dismissed or settled by the earlier of (i) thirty (30) days from commencement or (ii) consummation of such sale; or, if you are a business entity, your governing body adopts any resolution or otherwise authorizes action to approve any of the foregoing activities.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, several actions against a franchisee's assets can be considered events impacting their ability to pay debts. These events can trigger termination of the franchise agreement.
Specifically, if execution is levied against the franchisee, any of the Bonchon businesses, or any guarantor, or their property, it is considered such an event. Similarly, if the real or personal property of the franchisee, the Bonchon businesses, or any guarantor is sold after levy by a governmental body, sheriff, or other authorized person, it constitutes an event impacting their ability to pay debts.
Additionally, the document states that if a judicial or non-judicial action to foreclose any lien or mortgage against any of the System Restaurant premises or equipment is instituted against the franchisee and is not dismissed or settled within thirty days from commencement or before the consummation of such sale, it is also considered an event impacting their ability to pay debts. These events can lead to the termination of the franchise agreement by Bonchon, without an opportunity for the franchisee to cure the breach.