Who approves the site for the first Bonchon 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 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the site for the first Bonchon Restaurant Location under the Area Development Agreement is not approved or disapproved by Bonchon under the Area Development Agreement. Instead, this process occurs under the terms and conditions of the unit Franchise Agreement, following Bonchon's then-current standards.
However, Bonchon does approve or disapprove the sites for subsequent Restaurant Locations under the Area Development Agreement, according to the terms and conditions outlined in that agreement and Bonchon's current standards.
This distinction is important for prospective area developers. While the initial site selection follows the standard franchise agreement process, subsequent locations fall under the area development agreement. This may involve different criteria or approval procedures, so franchisees should carefully review both agreements to understand the site selection process fully.