What agreement must a Bonchon franchisee and their business entity execute with Bonchon to transfer the franchise interest to the entity?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
- D. You and the business entity must execute an agreement with us under which you and the business entity agreed to be jointly and severally liable for all duties, responsibilities and obligations to us under this Agreement and expressly agree to be bound by all of the terms, conditions and covenants of this Agreement. Each then-current and future owner of any interest in the business entity must agree in writing to personally guarantee the performance by the business entity of your obligations under this Agreement, and to be individually bound by all of the terms and conditions of this Agreement and any other agreements between you and us, in the form of Exhibit H to this Agreement.
- E. Each present and future owner of any interest in the business entity must execute our Confidentiality/Non-Competition Agreement in the form of Exhibit E to this Agreement.
- F. The name of the business entity formed by you may not include the Proprietary Mark "Bonchon", any variant thereof or any word confusingly similar thereto.
- G. All of your business entity's organizational documents and evidence of ownership interests (such as stock certificates) must state that the issuance and transfer of any interest in the business entity are restricted by the terms of this Agreement and subject to our prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise interest to a business entity, both the franchisee and the business entity must execute an agreement with Bonchon. This agreement stipulates that both the franchisee and the business entity will be held jointly and individually liable for all obligations to Bonchon under the Franchise Agreement. They must also expressly agree to adhere to all terms, conditions, and covenants outlined in the Franchise Agreement.
Furthermore, all current and future owners of any interest in the business entity must provide a written guarantee, in the form of Exhibit H to the Franchise Agreement, ensuring the business entity's performance of its obligations. This guarantee also binds them individually to all terms and conditions of the Franchise Agreement and any other agreements between the franchisee and Bonchon. Additionally, each present and future owner must sign Bonchon's Confidentiality/Non-Competition Agreement, which is detailed in Exhibit E.
It is important to note that the business entity's name cannot include "Bonchon" or any confusingly similar variations. All organizational documents of the business entity must state that any issuance or transfer of ownership interests is restricted by the terms of the Franchise Agreement and requires Bonchon's prior written consent. This ensures Bonchon maintains control over who is involved in the franchise and that the franchise agreement remains supreme over any internal agreements of the business entity.