Who approves the sites for subsequent Bonchon Restaurant Locations under the Area Development Agreement?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon approves and disapproves the sites for subsequent restaurant locations under the Area Development Agreement. This approval process is based on the terms and conditions outlined in the Area Development Agreement and Bonchon's then-current standards.

For a prospective franchisee, this means that while Bonchon does not weigh in on the site selection for the initial restaurant location under the Area Development Agreement (that decision is made under the unit Franchise Agreement), Bonchon retains control over the locations of all subsequent restaurants developed under the Area Development Agreement. This is a crucial aspect for area developers to consider, as they will need to align their site selection strategy with Bonchon's criteria and obtain their approval for each new location.

This approval process ensures that new Bonchon restaurants meet the brand's standards and are strategically located to maximize their potential for success. However, it also means that franchisees must work closely with Bonchon and may face delays or challenges in securing approval for their preferred locations. Franchisees should familiarize themselves with Bonchon's site selection criteria and maintain open communication with the franchisor throughout the development process.