What actions are Bonchon franchisees prohibited from taking regarding their restaurant location lease without advance written approval from Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In any Lease, you may not create any obligations or grant any rights against us or our affiliates or agree to any term, condition or covenant which is inconsistent with this Agreement or any related agreement. You acknowledge and agree that you are bound by and must timely perform all terms, conditions, covenants and obligations under the Lease and that your failure to comply with the Lease will constitute a material breach of this Agreement. You may not assign, transfer or encumber your Lease or sublet all or any part of the Location without our advance written approval.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee is restricted from certain actions regarding their restaurant location lease without obtaining advance written approval from Bonchon. Specifically, a franchisee cannot assign, transfer, or encumber their lease, nor can they sublet all or any part of the location without Bonchon's prior written consent.
This provision ensures that Bonchon maintains control over the location of its franchises and the terms under which they operate. By requiring approval for any changes to the lease agreement, Bonchon can protect its brand and ensure that the location continues to meet its standards. This also prevents franchisees from entering into lease agreements that could negatively impact the Bonchon brand or create obligations for Bonchon without their consent.
For a prospective Bonchon franchisee, this means that any decision to alter the lease, such as assigning it to another party or subletting the space, must be first approved by Bonchon. Failure to obtain this approval could result in a breach of the franchise agreement. It is important for franchisees to carefully review the lease agreement and understand these restrictions before signing.
This type of restriction is common in franchising, as franchisors typically want to maintain control over key aspects of the business, including the location. Franchisees should be aware of these limitations and factor them into their business decisions.