What condition must the property sold to Bonchon be in, regarding liens and encumbrances?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
All property, real or personal, sold to us or our affiliate, nominee or designee (as applicable) under this Article 19 must be free and clear of all liens, debts, claims, liabilities, leases, encroachments, covenants, conditions, restrictions, rights, rights of way and/or other encumbrances (except for tax liens and special and/or other assessments not delinquent) unless we, in our reasonable opinion (or that of our affiliate, nominee or designee, as applicable), determine that the existence of same either will not interfere with the proposed use of the property or that the existence of same are merely due to easements of record, zoning ordinances or statutes, use and occupancy restrictions of public record or other limitations which are generally applicable to similar properties in close geographic proximity to the Restaurant Location.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee sells property to Bonchon, the property must be free and clear of all liens, debts, claims, liabilities, leases, encroachments, covenants, conditions, restrictions, rights, rights of way, and other encumbrances. There are exceptions to this rule.
Specifically, the property can have tax liens and special or other assessments that are not delinquent. Additionally, Bonchon may determine that certain encumbrances will not interfere with the proposed use of the property. These encumbrances can include easements of record, zoning ordinances or statutes, use and occupancy restrictions of public record, or other limitations generally applicable to similar properties near the Restaurant Location.
This requirement protects Bonchon by ensuring that it receives property with a clear title and without unexpected financial or legal burdens. A prospective franchisee should carefully review the title and any existing encumbrances on the property with legal counsel to ensure compliance with these requirements before selling to Bonchon.