Besides membership termination, what other consequence may result from a Bonchon member's default in payment of fees, dues, assessments, fines, or penalties, according to Section 12.03?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
When any member shall be in default in the payment of any fees, dues, assessments, fines or penalties for a period of sixty (60) days from the beginning of the period for which such amounts become payable, his or its membership may thereupon be terminated in the manner provided in Section 4.07 of these By-Laws. In addition, such default may result in termination of the member's rights under his/its Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a member defaults in payment of any fees, dues, assessments, fines, or penalties for 60 days, their membership may be terminated. In addition to membership termination, the default may also result in the termination of the member's rights under their Franchise Agreement.
This means that a Bonchon franchisee who fails to pay required fees or other financial obligations for the specified period not only risks losing their membership within the Bonchon franchise system but also faces the possibility of losing their franchise rights altogether. This could lead to the franchisee being forced to cease operations and losing their investment in the franchise.
It is important for prospective Bonchon franchisees to understand the payment terms and due dates outlined in the Franchise Agreement and to ensure they have sufficient financial resources to meet these obligations. Failure to do so could have severe consequences, including the loss of their franchise.