What actions related to the transfer of rights or obligations under the Bonchon franchise agreement can lead to its termination?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and acknowledge that we have entered into this Agreement in reliance on and in consideration of your singular personal skill and qualifications (or, if you are a business entity, the personal skill and qualifications of your owners and managers), and the trust and confidence that we repose in you (or your owners and managers, if you are a business entity), and that this Franchise Agreement and the franchise conveyed hereunder is therefore personal to you and is your personal obligation. Accordingly, except as provided below, neither all nor any part of your interest in this Agreement; the franchise conveyed hereby; your rights, privileges or obligations under this Agreement; the franchised Business; your franchised Bonchon Restaurant; the ownership of your franchised Business; or, your rights to use the Bonchon System, Proprietary Marks, Confidential Information and Manuals may in whole or in part be assigned, sold, transferred, shared, sublicensed or divided, voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise, in any fashion without first obtaining our written consent in accordance with this Article 14 and without first complying with our right of first refusal pursuant to Section 14.06 below.
Any actual or attempted assignment, transfer or sale of this Agreement, the franchise conveyed hereunder, the franchised Business, your franchised Bonchon Restaurant, any ownership interest in you (if you are a business entity), any of the other interests, rights or privileges identified in the preceding paragraph, or any interest in any of these, in violation of the terms of this Article 14, will be null, void and of no effect, and will be a material and incurable breach of this Agreement which, unless we waive to the breach, will entitle us to terminate this Agreement immediately upon notice to you, with no opportunity to cure.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the franchise agreement is personal to the franchisee, and any unauthorized transfer or assignment can lead to termination. Bonchon enters the agreement based on the franchisee's skills and qualifications, so the franchisee cannot transfer any part of their interest in the agreement without Bonchon's written consent. This includes the franchise itself, the rights and obligations under the agreement, the franchised business, the Bonchon restaurant, ownership interests, or the rights to use the Bonchon system, proprietary marks, confidential information, and manuals.
Any attempt to assign, transfer, or sell the agreement or any of the listed interests without Bonchon's consent is considered a material breach of the agreement. Unless Bonchon waives the breach, they are entitled to terminate the agreement immediately upon notice to the franchisee, without providing an opportunity to cure the breach. This means that if a franchisee tries to sell their business or transfer their rights without approval, Bonchon can terminate the agreement.
This provision protects Bonchon by ensuring that the brand is represented by qualified and approved operators. It is a fairly standard practice in franchising to have strict controls over the transfer of ownership to maintain consistency and protect brand standards. A prospective Bonchon franchisee should understand these restrictions and follow the proper procedures for seeking approval for any transfer or assignment to avoid termination of their franchise agreement.