Does Bonchon approve the site for the first Restaurant Location under the Area Development Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not approve or disapprove of the site for your first Restaurant Location under the Area Development Agreement, we do this under, and pursuant to the terms and conditions set forth in, the unit Franchise Agreement and in accordance with our then-current standards imposed in connection with same. However, we do approve and disapprove the sites for your subsequent Restaurant Locations pursuant to the terms and conditions set forth in, the Area Development Agreement and in accordance with our then-current standards imposed in connection with same.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 45–60)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon does not approve or disapprove the site for the first Restaurant Location under the Area Development Agreement. This approval is instead handled under the unit Franchise Agreement, following Bonchon's standards. However, Bonchon does approve or disapprove sites for subsequent Restaurant Locations under the Area Development Agreement, according to its standards.
This means that if you sign an Area Development Agreement with Bonchon to open multiple locations, the site selection process for your initial restaurant will be governed by the standard Franchise Agreement terms, while site selection for later restaurants will fall under the Area Development Agreement. This distinction is important because the criteria and process for site approval might differ between the two agreements.
For a prospective Bonchon franchisee, this highlights the importance of carefully reviewing both the Franchise Agreement and the Area Development Agreement to understand the site selection process and approval criteria for each phase of their expansion. It would be prudent to clarify with Bonchon what specific differences exist in the site approval process between the initial restaurant and subsequent locations under the Area Development Agreement.