What agreements, besides the First Unit Franchise Agreement, will a Bonchon franchisee sign?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS FRANCHISE AGREEMENT RIDER – 2025 DEVELOPMENT INCENTIVE PROGRAM (this "Rider") supplements and amends that certain Franchise Agreement, dated as of (the "Franchise Agreement"), between Bonchon Franchise LLC ("Franchisor") and ("Franchisee"). This Rider is incorporated into the Franchise Agreement and is dated and effective as of the date of execution of the Franchise Agreement. In the event of any ambiguity or conflict between the terms of this Rider and the terms of the Franchise Agreement, the terms of this Rider shall control and prevail. All initial capitalized terms used but not defined in this Rider shall have the meanings given to those terms in the Franchise Agreement or the Area Development Agreement (as applicable). Background Simultaneously with signing this Rider, Franchisor and Franchisee are signing the Franchise Agreement, wherein Franchisee is granted the right and undertakes the obligation to operate a Bonchon Restaurant located at (the "Restaurant"). Franchisor and Franchisee are signing this Rider because, under an Area Development Agreement previously signed by Franchisor and Franchisee (or its approved affiliate) on (the "Area Development Agreement"), Franchisor committed (upon the satisfaction of certain conditions) to modify certain sections of each franchise agreement to be signed for certain Bonchon Restaurants to be developed under the Area Development Agreement where the Restaurant opens and commences operations in accordance with the terms of this Rider to reflect the incentives offered by Franchisor under a limited-time incentive program for new development (the "2025 Incentive Program"). As Franchisee is eligible to participate in Franchisor's 2025 Incentive Program, Franchise and Franchisee desire to modify certain sections of the Franchise Agreement to reflect the incentives offered under Franchisor's 2025 Incentive Program. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, commitments and understandings contained herein. Franchisor and Franchisee hereby agree as
AGREEMENT
follows:
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees may be required to sign agreements in addition to the standard Franchise Agreement. Specifically, if a franchisee is developing multiple units under an Area Development Agreement, a Franchise Agreement Rider related to the 2025 Development Incentive Program may be required. This rider supplements and amends the standard Franchise Agreement to reflect incentives offered under a limited-time program for new development.
Additionally, individuals attending the Initial Training Program or Partner Training Program must sign and return a Trainee Waiver, Assumption of Risk and Indemnification Agreement. This agreement is in the form of Exhibit I to the Franchise Agreement. Furthermore, if a franchisee decides to transfer their franchise to a new owner, the assignee must execute a new Bonchon Franchise Agreement and any other agreements required of new franchisees.
Finally, franchisees must acknowledge receipt of the Franchise Disclosure Document by executing the Receipt form prescribed in the Franchise Disclosure Document and promptly returning it to Bonchon. These additional agreements and riders ensure that Bonchon franchisees adhere to specific program terms, acknowledge risks associated with training, and that any transfer of ownership meets the current standards of Bonchon.